Question

What do you need to do to configure a new exchange rate type in SAP S/4HANA?There are 2 correct answers to this question.

1) Specify a purpose for the exchange rate type.
2) Maintain exchange rates daily.
3) Specify the direct or indirect quotation.
4) Set up the relationship between currencies using translation ratios.

Answer 1

To configure a new exchange rate type in SAP S/4HANA, one must specify its purpose and whether to use direct or indirect quotation for the exchange rate. Daily maintenance and translation ratios are related but not part of the initial setup process.

Step-by-step explanation:

To configure a new exchange rate type in SAP S/4HANA, you would need to perform several steps, but among the options provided, two are correct:

1. Specify a purpose for the exchange rate type. This entails defining why and how the exchange rate type will be used within the system to meet business requirements, whether it's for financial reporting, transaction conversion, or protecting against currency fluctuations.
2. Specify the direct or indirect quotation for the exchange rate. This indicates whether the exchange rate expresses how much of the foreign currency is needed for one unit of the local currency or vice versa.

Maintaining exchange rates daily and setting up translation ratios are tasks that relate to the management of exchange rates rather than the actual initial configuration of the exchange rate type.