Foreign Currency Translation

Handling multi-currency transactions

Foreign Currency Translation addresses the features and processes in SAP S/4HANA for managing multi-currency transactions, exchange rate differences, and translation of financial statements to a common currency for reporting.

5 minutes 5 Questions

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SAP S/4HANA - Foreign Currency Translation Example Questions

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Question 1

Which of the following is not a standard S/4 HANA Exchange rate type?

Buying rate Closing rate Average rate Fixed rate Selling rate Floating rate

Correct Answer: Floating rate

Floating rate is not a standard exchange rate type in SAP S/4HANA. The standard exchange rate types include average, buying, selling, fixed, and closing rates.

Question 2

While posting a foreign currency transaction to an SAP S/4HANA system, how does the exchange rate get determined?

From the exchange rate maintained in the system Based on the previous day's last transactions Using a default conversion rate for all transactions From an external exchange rate provider By calculating a real-time exchange rate using currency fluctuations By averaging the exchange rates over the last reporting period

Correct Answer: From the exchange rate maintained in the system

When posting a foreign currency transaction, the exchange rate for the conversion is determined based on the exchange rate maintained in the SAP S/4HANA system.

Question 3

In SAP S/4HANA, which transaction code is used for displaying and checking the account balance in different currencies?

FAGLB03 FB65 F-28 XD01 FB60 FS00

Correct Answer: FAGLB03

Transaction code FAGLB03 is used for displaying and checking the account balance in different currencies. The other transaction codes are related to other financial activities and are not meant for checking account balances.

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