Financial SAP S/4HANA – a guide for using the SAP multi-currency accounting (MCA)

July 27, 2018
Sphinx IT SAP ERP MCA multi currency accounting

Hi – this week we introduce an illustrated tutorial about an SAP ERP component, aimed at financial institutions.

As part of the normal Business Suite license, companies benefit from SAP ERP Central Component (ECC) featuring the SAP multi-currency accounting (MCA).

Based on an internationally accepted accounting principle to record foreign currency items, the MCA aims to support banks reporting “their currency exposure or foreign exchange (FX) risk on the position level and the valuation results on a regular basis (daily or monthly)”. Once a common FX valuation is present, banks and financial institutions can manage their exposure in foreign currency, based on one or multiple positions per currency. These institutions work by transforming their profit and loss (P&L) into a functional currency, against which their foreign currency positions are assessed.

Position risk is assessed against this functional currency established for each financial entity in MCA (see above).


The SAP Insider article provides a detailed guide on how to use the SAP MCA feature

The article we recommend comes from SAP Insider, and is a guide/tutorial/walk-through meant to teach you how to make use of the MCA feature.

By following the indicated steps, you will be able to:

– Maintain and Display a Market Data Exchange Rate

– Process MCA Profit & Loss MCA Profit & Loss

– Valuate Monetary Asset Accounts

The author of the article is an SAP-certified professional with 13 years of consulting experience in SAP FI/CO, who has been a part of many full-cycle implementation projects as FI/CO lead.

To go through the full text, you may access here the original post.


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