Foreign exchange difference
hi sap gurus
I am facing one problem in foreign currency valuation . Company code currency is INR
We are issuing sales invoice to one customer in USD for 1000 US$- rate on the date is 50 INR=1 US$. Receivable in INR 50,000.Customer reco acct is in INR
Customer is making payment in US$ 1000 (F-28) rate is 48 INR=1 US$
We are receiving 2000 INR less but system is not accepting the rate given in F-28. It is taking rate for invoice and converting 1000 US$ TO 50000 INR.
Hence I am not able to record loss/gain.
Customer reconciliation account is mapped into fbkp.In f.05 entry is properly getting generated and reversed for monthly closing.
Hi Nitin,
Try this....
In Company code global parameters--OBY6,check the Indicator: No ex.rate difference when clearing in local crcy.
Thanks
Aravind
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Purchase price variance is the difference between purchase price order and material standard price.
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Hi,
We have a problem regarding posting foreign exchange rate difference at the time of GR.
We are costing materials at the beginning of year, and purchases made during the year as per PIR will result in legitimate price difference which is posted to price difference account. Thatu2019s working alright.
Now, due to new business requirement, we maintained PIR in MXN (Mexican peso), & standard cost is converted in local currency USD as per exch. rate maintained in OB08.
Now, when we do GR, the difference of foreign exchange at the time of Std. cost & GR date is posted to Price difference account instead of foreign exchange account. For eg. Std .cost of material A is 1000 MXN, and GR cost of material X is also 1000 MXN, however corresponding USD is different because of different foreign exchange rate.
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Thanks for your replies.
We have already maitained exch.rate GL OBYC-KDM, which is successfully posted with the exch.rate diff.arising out of GR & IV at the time of IV.
I'm talking about price difference in Std. cost & GR value because of exch.rate diff.
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How do we account for when the exchange rate changes between PO and invoice?
I have posted an A/P invoice on to our system for $1,000,000 on 31 October 2007 when $1 = £2.00
I have now paid the invoice so $1,000,000, but the exchange rate is $1 = £2.10
2 questions - How do I match the payment against the invoice?
Granted the $ is zero, but the Business Partner shows a £ balance of (($1,000,000 / 2) ($1,000,000 / 2.10)) = £23,809 difference in exchange rates. So how do I account for the exchange rate difference to clear the account?
Many thanksThis is manual work. you could use exchange rate differences as a standard one. It is available in financial module. you execute on the date where you post the AP invoice. There is GL account for realized exchange rate gain and loss that must be set in the GL account determination.
The transaction journal will be resulted in after perform the exchange rate differences. I have performed this work and the result is okay. usually the company do this yearly or monthly if the exchange rate of currency is not highly fluctuations.
Rgds, -
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Hi
Iam explaining my query based on an example:
For ex. an amount of USD 1000 outstanding in vendor account accounted at USD 1 = INR 40 (INR 40,000)
I have paid him USD 500 after two months (on which date the USD 1 rate is INR 50) - i.e., INR 25,000
However, while selecting the open items in T-Code F-53 if I select partial payment the entry will be
Bank a/c Cr. USD 500 INR 25000 @ 50
Vendor a/c Dr. USD 500 INR 25000 @ 50
However, no exchange rate difference is generated at this point of time.
However, if I selected the open items in T-Code F-53 by selecting residual payment the entry will be
Bank a/c Cr. USD 500 INR 25000 @50
Vendor a/c Dr. USD 1000 INR 40000 @40
Vendor a/c Cr. USD 500 INR 25000 @50
Exchange Loss Dr USD 0 INR 10000 (Exchange loss)
My Doubt is, when Iam making partial payment, why is entire exchange loss on USD 1000 getting recognised, it should recognise only on USD 500.
Further, during partial payment, why doesnt exchange loss get recognised?
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Abhishek KumarResolved. T-Code IDPH1
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Exchange difference - bank clearing
Hi All
while doing bank clearing in F-03.
the transaction is in CAD and clearing is happening in USD
it is asking the currency amount to be cleared
please suggest me where to make the changesHi
Select the CAD currency to clear the same as base currency is CAD and I assume that both the line items of CAD + and - are of same amount . If it is so it will clear the documnet however if there is difference in USD it will post the difference to foreign exchange difference account.
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About foreign currency exchange difference when do MIRO
Dear all,
There's a purchase order with foreign currency, for the currency rate floated every month, if we do MIRO in the next month after we do GR, there's foreign currency exchange difference happened,
the problem is if the mat'l code with stand price control, in OBYC, I set the transaction KDM with account determination:exchange difference, then I do MIRO, it's ok, the currency exchange diff goes into the right account(exchange difference),
but if the mat'l code with price control V, when do MIRO, the currency exchange difference goes into the inventory account automatically, seems not determined by the setting of OBYC KDM,
so what can I do,?
Appreciate your kind reply in advance.
RgdsHi Kathy Wan,
Try the SAP Note No:980402.For me it worked only for material price with Moving Average price.
Still We are analysing to get for Accout assignment purchase order and service purchase order.
If you got complete your requirement ,Please let me know.
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Rajesh -
GR/IR clearing - Foreign Exchange Loss
Hi Sap Gurus,
My Company code currency is u201CCADu201D and my Group Currency is u201CUSDu201D. I have maintained GR/IR clearing account as u201Conly balances in local currencyu201D
I have done GR in 2008 for 100 CAD. And I have reversed this GR in 2010.
When I am doing the automatic clearing of GR/IR: System is posting an entry of Revaluation loss (from KDF trans type) DR To GR/IR clearing a/c (for 0 CAD and in GL view it is 129 USD)
BSEG table has been updated only with zero but in FLAGLFLEXA I could see 129 USD updated in grup currency .
My question is u2013
1.) why the system is looking for KDF currency when I have maintained u201COnly balance in local currencyu201D for GR/IR clearing account u2013 is that because I have maintained this GR/IR clearing account in OBA1 i.e. for foreign exchange revaluation ?
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You have maintained this account in OBA1 for KDF, that is why it is showing forex differences. The difference is in Group currency currency and not in your company code currency.
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Murali. N -
Incorrect value of Auto. Gain Loss Foreign Exchange during GR/IR clearing
Dear Experts,
We have activated the Material Ledger functionality.
The Document Currency of PO, GR, and IR are in Foreign Currency.
The postings are below:
Loc Currency 1 = USD
Loc Currency 3 = IDR
Doc currency = IDR
GR
Dr Material 52,980,975 Doc Curr/IDR 5,340.80 Loc Curr 1/USD
Cr AP u2013 GRIR -75,000,000 Doc. Curr./IDR -7,560.45 Loc Curr 1/USD
Dr Price Adjustment 22,019,025 Dor. Curr/IDR 2,219.65 Loc Curr 1/USD
IR
Dr AP u2013 GRIR 75,000,000 Doc. Curr./IDR 7,560.45 Loc Curr 1/USD
Cr AP-Vendor -75,000,000 Doc. Curr./IDR -7,537.73 Loc Curr 1/USD
Cr Forex AP- Current 0 Doc. Curr./IDR -22.72 Loc Curr 1/USD
GR/IR clearing
Loc Currency 1 = USD
Loc Currency 3 = IDR
Doc currency = USD
Dr AP u2013 GRIR 7,560.45 Doc Curr./USD 75,000,000 Loc. Curr. 3/IDR
Cr AP u2013 GRIR -7,560.45 Doc Curr./USD -75,000,000 Loc. Curr.3/IDR
Dr Forex AP- Current 0 Doc Curr./USD 1,360,469 Loc. Curr. 3/IDR
Cr Forex AP- Current 0 Doc Curr./USD -1,360,469 Loc. Curr.3/IDR
The problem occured after GR/IR Clearing is performed. The system generated automatic Gain/Loss Foreign Exchange AP-Current with incorrect amount in Local Currency 3. That amount was not match with the delta exchange rate difference on the date of IR is performed and on the date of GR/IR Clearing is performed.
Can anyone inform me what is the probable cause of this incorrect Forex AP-Current calculation? What is the calculation basis that SAP system use to calculate this automatic Forex AP-Current?
Should you require any additional information, please let me know.
Thank you
Best regards,
Frans SunarjaHi
First once we have check the exchange rate types in OB08
second one you are no main the gain/loss a/c OB09 w are setting Loss/gain .
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suresh -
Foreign exchange gain and loss
Short Text
Foreign Exch Gain / Loss to be booked to a diffr cost center
Long Text
The transaction booked with the following parameters
Step 1:-Transaction booked trough FB60
Foreign currency CHF @ 40/ruppee
Expenses debited (1000-cost center)
Vendor Credited
Step 2:-Transaction paid through F-53
Foreign currency CHF @ 50/ruppee paid
Vendor Debited (Clearing the open item)
Bank outgoing account Credited
Foriegn exchange gain and loss Debited
In ECC 6.00 Version:- The open item clearing inherits the CO objects
from step one except for "Foreign exchange agin and loss line item"
Note:
1) In above scnerio, if foreign exchange gain and loss booked to some
other cost center other than Step one:- Cost Center (Expenses booked).
2) If the foreign exchange gain and loss line item booked to same cost
center as specified in Step one:- Cost Center (Expenses booked).The
below error does not occur.
3) The requirement is to book different cost center for the Foreign
exchange gain and loss line item.
The following error occurs during FB05 transaction execution for
transfering the line item in Bank outgoing account to Bank Main account.
Error Details occur during FB05 transaction execution:-
Start----
Ex.rate diff.accts are incomplete for account 0002500062 currency CHF
Message no. F5063
Diagnosis
The accounts for posting exchange rate differences could not be
determined. For the specified G/L account and the specified
currency
key, the accounts are only specified incompletely. Either the
accounts
for the implemented exchange rate difference, the accounts for the
valuation differences or the balance sheet adjustment account are
missing.
System Response
The system cannot generate the exchange rate difference posting.
Procedure
By pressing ENTER, you achieve that the document is reset to a
status
without automatic posting. In another window, you can complete
default
settings for exchange rate differences and post the document
afterwards.
END----
Configuration already in place:-
1) Bank outgoing and main account "ONLY BALANCE IN LOCAL CURRENCY" is a
ticked
2) In OBA1 Foreign exchange gain and loss and valuation gain and loss
GL's are defined for respective Reconciliation account.
Regards,
SathyaHi,
Is your problem solved, I am also facing the same issue when transffering from Incoming/Outgoing to Main Bank Account. Exchange gain/loss is being calculated by the system.
Please share with me the solution to the above problem.
Thanks & Regards,
Jyoti -
Purchase price variance-Foreign exchange
HI Experts,
as per my business process
PPV-fx means
The Foreign Exchange rate difference between the average exchange rate of the month that the invoice is booked and the standard company xxxxx exchange rate that company xxxxx applies for actual costing and where company xxxxx bases their hedge policy on.
for this month my ppv-fx is 30000
i want to know how this got calculated?
how can i see average exchange rate of the month for all the invoices and standard exchange rate for actual costing?Hi
Acually the forex valuation at time one rate,
The system calcualtion rate at end month different rate,
so revauation for exchange rates,invoice dates and document dates.
any clarification call me+91 9962155061
Edited by: jyothi reddy on May 10, 2010 10:04 PM -
Foreign Exchange Gain Loss not getting booked
ECC 6.0
Configured
A. OB59 - BSK,EVR,KT0
B. FS00 - 5800000 Foreign Exchange maintained in Local Currency, Automatic Posting is Ticked
C. FBKP - KDF Linked to 5800000 for Vendor Reconciliation Account
Invoice USD @40
Making Payment in F-53 USD @45
Foreign Exchange of USD5 is not getting posted.
Please guide on the same , suitable rewards
RegardsHi
In OBA1 -
>Prepare Automatic postings for foreign Currency Valuation , Double click on Exchange Rate Difference using Exchange Rate Key -
KDB
give chart of accounts and enter.
give Exchange Rate Difference Key (EKEY) , Expense A/C , Exchange Rate Gain A/C and save.
Go to FS00 and assign this EKEY in Bank Account.
This will work out.
Regards
Venkat -
Foreign Exchange accounting in TRM
Dear Experts,
To give you brief intro, i am a finance person and user of SAP Treasury module. my knowledge of the module is of user level and not of functional or technical level.
i need your help on my below query.
for foreign exchange trades (60A), what should be the right accounting practice thru TRM (1) at time of of entering into deal (2) at time of maturity of transaction and also at time of (3) pre mature or part settlement of the transactions.
currently, i do not post any entry at time of creating 60A/102 deal.
at time of maturity, i does cash settlement in deal, put the cancellation rate, date of cancellation in date box to generate gain / loss and post the same (only cash settlement entry) thru TBB1
in case of part or early utilization or forward contract, i does the pre mature settlement from ftr_edit and copy paste 102 deal details in 105 and 103 deals including contract date and value date except for amount. thereafter, i settle both deals and cash settle 105 deal with cancellation rate and transaction date in date box to generate gain / loss. this gain / loss is posted thru TBB1. in this case, when i have taken early delivery, i have to add or subtract swap points in final rate to arrive at correct rate. also, i have to to cash settle 102 and all 103 deals when there's final amount settlement whether on due date or before it.
in my case, buy sale position of two currencies are shown in cashflow tab as "not rel. for posting" and is not posting even on maturity.
i know i have given bit lengthy details but i really wants to understand
1. is above practice of recording fx transaction is correct?
2. is there any better way to capture early deliveries?
3. in case of early delivery, is it right & necessary to replicate 102 deal details in 105 and 103?
4. what is role of TPM18 which i am not using at all in above scheme of fx set up?
your valuable reply will be of great help to me.
Thanking you all in advance
KapilHello Kapil,
Your questions has covered most of FX process.
I'll try to answer few of your question.
Answer 1) The process is correct, Its based on what your company required consultant has customized the system in that fashion, As you said there is not posting even during maturity of deals, that because in customization setting is missing for posting. Incase its required please consult you consultant to make the changes in system for Flow type-(here relevant for posting is unchecked).
Answer 2 & 3, I'm not sure why consultant has suggested to use such a lengthy process to settle early deliver deal, There might be some reason for the same. Please check,
But the same process can also be addressed, throught FTR_edit and settle the single deal through cash settlement.
Also note, 103 is only used for netting which means you are trying to settle couple of deal together and that can be excluded if you have only single deal.
Answer 4) TPM18 is used to do the valuation after the deal has been closed.Realized gains and losses are determined according to single valuation of transactions principle. This is calculated by taking the difference between the forward rate based on the conclusion of the contract and the posted rate on value date.
Let me know in case you need more information.
Regards,
Jaiin -
Reversal of unrealized exchange difference
Dear Experts,
I need your advise on the following issue.
At our company we revaluate both bank accounts and open items in foreign currencies at each month end. At the beginning of the next month, unreal.exchange differences for open items are reversed but differences for bank accounts are not. Accordingly, we have permanent balance in P&L account for unrealized exch. rate gains and loses.
I would like to know if there any unirom approach to dealing with this issue. Do you have to reverse gains/loses for bank accounts each month or leave it as it is and make one journal entry to reverse accumulated gains/losses if/when particular bank account is closed, e.g. foreign currency balance is 0?
Thank You,Hi Srinivas
Thank you for input.
Yes, we are not making any reversal for bank accounts, but are reversing gains/loses for open items such as accounts payable/recievable. Is this the case with other SAP users?
The issues is that P&L account has accumulated unrealized difference due to non reversal for bank accounts. Do we need to post accumulated balance to realized gain/loss when bank account is closed (zero balance in foregn currency)?
Best regards, -
Hi All,
When I clear one invoice say 100 USD with payment of 100 USD in f-44, then exchange rate difference line item is getting created and the same is reflecting in FBL1N but when I make partial payment say 75 USD, exchange rate difference line item is getting created but the same is not reflecting in FBL1N.
Full Payment
100 USD Invoice ( @ 50 INR ) 5000
100 USD Payment ( @ 48 INR ) 4800
Exchange Gain A/c Rs. 200/- ( this line item is created in FBL1N and the same is posted in GL a/c )
Partial Payment
100 USD Payment ( @ 48 INR ) 4800
75 USD Invoice ( @ 50 INR ) 3750
Exchange Gain A/c Rs. 150/- ( this line item is not created in FBL1N but the same amount is posted in GL a/c )
Just need to clarify if the above examples with posting are correct.
Thanks in advance....
AnishHi,
Foreign Exchange Gain or /Loss will be caliculated when there are cleared itemsu2026. So when you are making partial payment then the exchange rate gain or loss will not be calculated as no items are been cleared.
Instead use residual payment to view exchage rate diff. postings, in case of partial payment when you make the final payment and when the line items are cleared then you can see the exchange rate gain/loss caliculated.
Regards
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