Converting different currencies

In general, the businesses at any scale are geography-centric and based on the local currency. They are scattered across regions and continents. There is a strong significance to have the proper design and feature of currency conversion mechanism to ensure a robust, foolproof, and interconnected system in the database to calculate the key metrics or measures to ensure the numbers are correct. Posting orders, purchases, or invoicing is done in the local currency of where the sale happens. Business users or transaction specialists who execute the reports may be in the same or a different geographical region. For this reason, tables in SAP ERP, or any ERP for that matter, will have mandatory fields and an explicit nexus between the amount fields and the currencies. In this recipe, we will look at how to perform currency conversion.

How to do it…

The key stake objects or parameters are the source currency, target currency, and the impacted tables where the conversion...