. Explain the use of Direct or Indirect Quotations.?

It is possible to maintain the exchange rates, in SAP, by either of these two methods. What determines the use of a particular type of quotation is the business transaction or the market standard (of that country).

SAP adopts two prefixes to differentiate direct and indirect quotes during entering/displaying a transaction:

􀂃 —Blank, no prefix. Used in Direct Quotation

􀂃 /—Used in Indirect Quotation

When there is no prefix entered, (blank), the quotation is construed as the direct quote by the system. Possible scenarios include:

􀂃 The company in question is mainly using the Indirect Quotation.

Use  (blank) as the prefix for default notation for indirect quotation. Use * as the prefix for the rarely used direct quotation. If someone tries entering a transaction using direct quotation, but without the * in the exchange rate input field, the system will issue a warning.

􀂃 The company in question is mainly using the Direct Quotation.

You do not need any specific settings as the default is the  (blank) prefix for the direct quotation, and / for the indirect quotation. So, unless you make a transaction entry with / prefix, the system takes all the entries as that of direct quotation.

􀂃 There could be instances where you are required to configure in such a way that a prefix is mandatory irrespective of the type of quotation. In this case, define the direct quotation prefix as *, and the indirect one as the system default / prefix. This necessitates a prefix each of the entries either by * or /. Otherwise, the user will get a warning to correct the entry.