Tuesday 29 November 2011

How Currency works in SAP

When you look at the SAP Tables it will have the currency fields with 2 decimal places only. Though lot of currencies has only 2 decimal places as per the ISO Standards, there are also some currencies which Differs from the concept of 2 Decimal places, for example: Japanese Yen Does not have a concept of Decimal places, and most of the currencies from the middle Ease are having 3 decimal place, so how these currencies will be handled?

Also SAP gives us the option of defining our own currencies as per our Requirement.

Well, The answer for hoe the currencies with different Decimal notations lies in the Shifting mechanism.

For Example you have the currency JPY, which does not have any Decimal notation, this will be stored in the table after Shifting the Decimal point to left for 2 times,
For Example, the amount 1234 in JPY will be stored in the Database table as 12.34, and when displaying in the screens the Formatting will adjust such that it display the JPY amount without any decimal places.

This concept of shifting the decimal places based on the Currency key gives us the flexibility to define the currency without making any changes in the Database.

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