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  • Exchange Rate Spread

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    Teja Sai
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    The document defines exchange rate spread as the constant difference between average and buying exchange rates or average and selling bank rates. It recommends defining a reference currency for the average rate and entering spreads for buying and selling rates, as this allows calculating all exchange rates by only entering rates for individual currencies to the reference currency for the average rate. Defining spreads between rates allows the system to calculate exchange rates for buying and selling by adding or subtracting from the average rate.

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    The document defines exchange rate spread as the constant difference between average and buying exchange rates or average and selling bank rates. It recommends defining a reference currency for the average rate and entering spreads for buying and selling rates, as this allows calculating all exchange rates by only entering rates for individual currencies to the reference currency for the average rate. Defining spreads between rates allows the system to calculate exchange rates for buying and selling by adding or subtracting from the average rate.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    16 views1 page

    Exchange Rate Spread

    Uploaded by

    Teja Sai
    The document defines exchange rate spread as the constant difference between average and buying exchange rates or average and selling bank rates. It recommends defining a reference currency for the average rate and entering spreads for buying and selling rates, as this allows calculating all exchange rates by only entering rates for individual currencies to the reference currency for the average rate. Defining spreads between rates allows the system to calculate exchange rates for buying and selling by adding or subtracting from the average rate.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
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    Exchange Rate Spread

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    Definition

    Constant difference between the average rate and the buying rate, or between the average rate and
    the bank selling rate.

    Use

    For exchange rate types, you can define fixed exchange rate spreads between average rate and
    buying rate, as well as between average rate and bank selling rate.

    You then only have to enter exchange rates for the average rate. The system then calculates the
    exchange rates for the buying rate and bank selling rate by adding and subtracting the exchange
    rate spread for the average rate.

    Recommendation

    SAP recommends defining a reference currency for the average rate and then entering exchange
    rate spreads for the buying and bank selling rates. This combination is particularly efficient since you
    only have to enter exchange rates for the individual currencies to the reference currency for the
    average rate exchange rate type. The system calculates all the other exchange rates.
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