Case Study Solution: Working with Currencies

SAP Business One 9.2 (version for SAP HANA)

SAP Business One 9.2

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CASE STUDY SOLUTION: WORKING WITH CURRENCIES PUBLIC

Suggested solutions for the Working with Currencies case study

Tip: You can use the Look Up Menus function in SAP HANA or the search function in SQL to find the
relevant paths.
INFORMATION: input info

TASK 1
Create a new business partner master data record for a foreign currency customer.

Open the Business Partner Master Data window using the search function or by navigating to Business
Partners -> Business Partner Master Data.
In Add mode, enter the relevant data:

Header and General tab:

INFORMATION: Each Business Partner Master Data record and each G/L Account needs to have an
account currency defined. The system sets the Local Currency to the default currency for all Business
Partner Master Data. In this example, US customers will be defined in USD.

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You can define a default currency for new G/L accounts using the Default Account Currency field on the
Basic Initialization tab (under the Company Details window in the System Initialization).
Contact Persons tab:

Addresses tab (Bill to):

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CASE STUDY SOLUTION: WORKING WITH CURRENCIES PUBLIC

When you enter a different Country other than the default (United Kingdom), the following warning message
appears. Choose Yes.

INFORMATION: This will ensure that the Accounts Receivable account is defined as the Trade Debtors
(foreign) account and not the Trade Debtors (domestic) account for local customers.

Addresses tab (Ship to):

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CASE STUDY SOLUTION: WORKING WITH CURRENCIES PUBLIC

Payment Terms tab:

Accounting - General tab:

INFORMATION: Once a U.S. address is defined, the Accounts Receivable field is updated with the Trade
Debtors (foreign) account.

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CASE STUDY SOLUTION: WORKING WITH CURRENCIES PUBLIC

Accounting - Tax tab:

Add the Business Partner Master Data to the system.

If the customer wants to be invoiced in different currencies depending on the destination of the delivery, how
would you set up the business partner master data currency?

The Currency field in the business partner master data should be set to All Currencies. Then, each time the
user issues a marketing document for this business partner (such as a delivery or an A/R invoice), he or she
can choose a different currency as the BP Currency.
TASK 2

Update the relevant price list.

Open the Price Lists window using the search function or by navigating to Inventory -> Price Lists -> Price
Lists. Double-click the row number of the Regular Sales Price list (this price list was defined in the Business
Partner Master Data for Pivotal Solutions).

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CASE STUDY SOLUTION: WORKING WITH CURRENCIES PUBLIC

Add any additional form details if required.

The Regular Price List window appears, but there is no option to enter a foreign currency unit price for these
items.

You need to add the additional fields to the window by selecting the Form Settings icon or navigating to
Tools -> Form Settings.

INFORMATION: In the sales price list at OEC Computers, the primary currency remains the default;
therefore, British pounds are used in documents for local customers.

In the Form Settings – Regular Sales Price window (Table Format tab), check the boxes Additional Currency
1 – Base Price and Unit Price. Choose OK to confirm the changes.

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CASE STUDY SOLUTION: WORKING WITH CURRENCIES PUBLIC

The Regular Sales Price window now displays the new columns for additional currencies. Enter the USD
Unit Price for the relevant items and update the price list to save your changes.

INFORMATION: It is possible to set an item price in up to three different currencies – the primary currency
and two additional currencies – in each price list. This is useful when you need to define exact pricing for
different countries instead of using exchange rates.

TASK 3

Create a sales order.

Open the Sales Order window using the search function or by navigating to Sales -> Sales Order.
Enter the relevant customer and item data for the order placed by Pivotal Solutions.

Once you have selected BP Code C80000, the Exchange Rates and Indexes window opens automatically
due to the customer’s definition as a foreign currency customer.
Define the specified exchange rate for US Dollar for the current date.

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CASE STUDY SOLUTION: WORKING WITH CURRENCIES PUBLIC

INFORMATION: In the header, you will see that the BP Currency is USD and the exchange rate is 1.24.
However, the first two items in the order have a Unit Price in USD, while the last item is in GBP. The last item
does not have a USD unit price defined in the sales price list, so the system has calculated the total amount
for the row in USD based on the current exchange rate. The exchange rate used is based on the posting
date of the document.

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CASE STUDY SOLUTION: WORKING WITH CURRENCIES PUBLIC

TASK 4

Create an invoice based on the sales order.

Navigate back to the Sales Order and select Copy To -> A/R Invoice.

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CASE STUDY SOLUTION: WORKING WITH CURRENCIES PUBLIC

Once you create the A/R Invoice by choosing Add, you are asked to select batch numbers for the B10000
Printer Label items.

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CASE STUDY SOLUTION: WORKING WITH CURRENCIES PUBLIC

Choose Auto Select, then Update and OK.

Save the A/R Invoice.

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CASE STUDY SOLUTION: WORKING WITH CURRENCIES PUBLIC

What will be the currency of total amount of the A/R invoice?

The A/R Invoice currency is in US dollars. Navigate to the Accounting tab and drill down to Journal Remark
to review the Journal Entry. You can also right-click the document and select Journal Entry.

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CASE STUDY SOLUTION: WORKING WITH CURRENCIES PUBLIC

What will be the currency of the automatic journal entry created by the A/R invoice?

For automatic Journal Entries, the system converts the total invoice amount in foreign currency into local
currency and posts both values in parallel. The Journal Entry shows both Debit and Credit amounts in foreign
and local currency.

TASK 5
How should OEC Computers define the G/L account representing their company bank account in order to
receive payments in different currencies?

Open the Chart of Accounts window using the search function or by navigating to Financials -> Chart of
Accounts.
In the Name field, enter *bank. Then choose Find.

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CASE STUDY SOLUTION: WORKING WITH CURRENCIES PUBLIC

Choose the bank account from the list of accounts.

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CASE STUDY SOLUTION: WORKING WITH CURRENCIES PUBLIC

In the Currency field, ensure that the bank account is set to All Currencies. Users can then enter transactions
in any foreign currency that has been set up for the company, as well as in the local currency.
The balance of this account and the bank reconciliations will be managed in the local currency.
INFORMATION: You can change an account currency to All Currencies at any point, but once you update
the account, you will not be able to change it back to a local or specific foreign currency.

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