Unit 2: General Settings

Lesson 1 · Checking Countries and Currencies

Key concepts

Country settings

Every country in which you have suppliers, customers, plants or company codes must exist in the system. Country definitions are client-level settings that apply to all applications; the system uses them whenever addresses and master data such as business partners are maintained. For each country you maintain:

Note what is not a country attribute: you cannot set a time zone or the length of supplier names per country. If you need to create a completely new country (e.g. after a political change), search for SAP Notes that describe the correct country key set-up — SAP delivers guidance for such cases.

Exchange rate types

Conversion between currencies is driven by exchange rate types, which let you hold several rates for the same currency pair on the same date for different purposes (average, bank buying, bank selling, budget, etc.). Type M (standard translation at average rate) is the default used when documents are posted and cleared — including purchase orders in foreign currency when the buyer does not enter a fixed rate manually. The rate table must contain, for type M, an entry for every foreign currency in combination with every company code currency in use. Exchange rates are maintained at client level; they are valid for all company codes.

Alternative (deviating) exchange rate types: for certain currency pairs you can instruct the system to use a different rate type than M; this is entered in the translation ratio table. Changing translation ratios after go-live can create inconsistencies, so plan them up front. Financial Accounting can additionally assign an exchange rate type per accounting document type.

Reference currency: if many currencies must be converted among each other, you can assign a reference currency (e.g. EUR) to a rate type. You then only maintain each currency against the reference currency, and the system converts A → reference → B in two steps. This drastically reduces the number of rate entries.

Direct and indirect quotation

Which notation is used depends on market convention and can be set per client and currency pair. Indirect quotation became widespread with the introduction of the euro, when rates were published relative to EUR; it is now common internationally.

Automatic rate updates and tools

• Daily rates can be loaded electronically using the IDoc type EXCHANGE_RATE or the report RFTBFF00; SAP also documents how to pull rates from the European Central Bank.
• FXM_CONVERTER checks conversions with current rates; in the Fiori launchpad this is the Currency Converter app (treasury front-office role).
• The Import Foreign Exchange Rates app uploads rate files (treasury risk manager role).

Expiring currencies

When a country replaces its currency (as happened when countries joined the euro), you can control how long the old currency remains usable. Under SAP NetWeaver › General Settings › Currencies › Expiring Currencies you define expiry reasons, declare a currency as expiring, decide via warning or error messages how long it may still be used, define special authorizations for continued use, and set up automatic translation into the new currency for follow-on processes.

Process flow

System steps

1. Check the country key, formats and checks with OY01 and the country-specific checks with OY17.
2. In OBBS, locate rate type M with the two currencies; note any alternative rate type and the ratios.
3. In OB07, check whether that rate type carries a reference currency.
4. In OB08, enter the rate for the pair — or, if a reference currency is used, enter each currency against the reference currency.
5. Test with FXM_CONVERTER / Currency Converter, then create a PO in foreign currency (ME21N) to see the proposed rate.

Configuration (IMG)

Lesson 2 · Defining Units of Measurement

Key concepts

Units of measure (UoM) are used for display and printing (e.g. on purchase orders) and for converting quantities (kg ↔ g, cm ↔ inch). SAP's definitions follow the International System of Units (SI), which has seven base units from which all others are derived. Units are maintained centrally (transaction CUNI) and are valid for every application in the system.

Where units are used in logistics

Units of measure appear as base unit of measure (client level in the material master, the unit in which stock is managed), order unit, order price unit, unit of issue and sales unit. All alternative units of a material are converted to the base unit.

Value-based commitment indicator

If commitments are posted for account-assigned purchase orders, a flag on the unit of measure decides how commitments are reduced:

Process flow

System steps

1. Start CUNI; on the Dimensions tab check that all needed dimensions exist (create new ones with the base-dimension exponents if required).
2. Choose Units of measurement, select the dimension, and create the unit: internal key, commercial and technical keys and text per language.
3. Enter numerator, denominator (and exponent) relative to the SI unit; set decimal places for display and rounding.
4. Set the Commercial meas. unit indicator so the unit can be used in purchasing, and maintain the ISO code (via ISO codes) for EDI.
5. Decide on the Value-based commitment flag if commitments are used.

Configuration (IMG)

Lesson 3 · Setting Up a Factory Calendar

Key concepts

Logistics (MRP, scheduling, delivery date checks in purchasing) and Finance need to know which days are working days. SAP builds this information in three layers, maintained with SCAL:

Special rules declare individual dates or ranges as working or non-working days, e.g. a company-wide vacation shutdown. They are also used to fix the dates on which settlement of end-of-period volume rebate arrangements takes place (e.g. quarterly interim settlements). Supplier-specific special rules (such as the supplier's own shutdown) cannot be defined.

Assignment: a factory calendar is usually assigned to a plant (plant definition). Work centers can carry a different factory calendar if their working days differ. Storage locations and company codes do not have factory calendars.

Calendar definitions are client-independent.

Planning calendar versus factory calendar

A planning calendar (MD25, under Logistics › Production › MRP › Master Data › Planning Calendar) is plant-specific and defines period lengths or cycles — for MRP lot sizing, for planning cycles, for scheduling, and in MM for release creation profiles of scheduling agreements. It is maintained independently: changing the factory calendar does not update planning calendars, so they must be regenerated if necessary.

Process flow

System steps

1. In SCAL, check or create the public holidays (date rule, guaranteed flag).
2. Create a holiday calendar for the country/region and assign the holidays; set the validity years.
3. Create a factory calendar: link the holiday calendar, mark working weekdays, enter special rules (e.g. quarterly rebate settlement days, shutdown weeks).
4. Assign the factory calendar to the plant in the plant definition (OX10) and, if required, a different calendar to individual work centers (CR02).
5. If plant-specific periods are needed, create a planning calendar with MD25.

Configuration (IMG)

Unit summary & exam focus

General settings are cross-application and mostly client-level or client-independent. In MM they surface as addresses and country checks for business partners, the exchange rate (type M) in foreign-currency purchasing, the units on POs and in EDI, and the working-day logic that drives delivery dates and rebate settlement dates.

T-codes in this unit

Self-check questions

1. At which organizational level are exchange rates maintained?
   Answer

   Client level — they apply to all company codes.
2. A PO in USD is created for a EUR company code without a manual rate. Which rate is used?
   Answer

   The rate stored under exchange rate type M, unless an alternative rate type has been assigned to the currency pair in the translation ratios.
3. What is the benefit of a reference currency?
   Answer

   You only maintain each currency against the reference currency; conversions between any two currencies run in two steps via the reference currency.
4. Which two settings are needed for a new unit of measure to be used in purchasing and in EDI?
   Answer

   The Commercial measurement unit indicator (purchasing) and an ISO code (EDI).
5. Why can you not enter a numerator/denominator for "carton"?
   Answer

   It is dimensionless (pseudo dimension AAAADL) and has no SI unit; conversions are maintained per material.
6. Where do you define the dates for quarterly rebate settlement?
   Answer

   As special rules in the factory calendar.
7. Does changing the factory calendar update the planning calendar?
   Answer

   No — planning calendars (MD25) are maintained independently.