AP Balances' Mess.Xcess of Realised Exchange Gain/Loss Postings.How 2 Clear
Dear Readers,
Our project is stuck with an issue which from the onset a simple issue.
Issue being the AP balances show excess of Realised exchange gain/loss postings.The Realised Exchange gain/loss postings are in USD (i.e. Local Currency).
This creates an issue in clearing when the invoices do not match the balances and the automatic clearing is not possible.
Although reports (income statement and Balance Sheet) give matching results, but AP on the individual level (vendor wise) poses such a problem.
Kindly enumerate the solution.
Its a high priority issue.
Any sort of help is much sought.
Similar Messages
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Realised exchange gain (Capex account)
Hello,
We have capital advance in USD and same are cleared in subsequest month.As of now , exchange gain loss account is hit.
We need in this scenario a capex gain loss account to be hit.Have done config in OBA1 for capex advance account but not for vendor reco accocunt because it is common for both revenue & capex.Can only configuring for capex account in OBA1, give desired result.
Pls guide.HI,
Please use alternate reconciliation account concept.
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Tejas -
Foreign Currency exchange gain & loss
Dear expert,
I have a problem here, need help.
I have made the setting for foreign exchange gain/loss in OB09 and start to use f-28 for incoming payment.
When run the simulation, it gives me 2 lines of exchange gain/loss calculation. 1st line with amount zero (local currency) and 2nd line with the gain/loss amount.
I wonder why I have 2 lines of exchange gain/loss calculation?
Did I did something wrong or miss some specific setting?
Thanks in advance. will assign pointsHi Louis,
Please note the example below and you will understand why two line items are created:
Local currency - USD; foreign currency - GBP
Vendor invoice in foreign currency - 100GBP - Jan (Exchange rate: I GBP=2 USD)
Feb - You valuated the open item (Exchange rate: 1 GBP = 3 USD) with update principle
Entry: Unrealised exchange rate Debit 100 USD
To Special balance sheet account Credit 100 USD
Payment made in march where the exchange rate is 1 GBP = 3.5 USD
Entry will be:
Vendor debit 200 USD
Balance sheet account debit 100 USD
Realised exchange rate loss debit 50 USD
To bank 350 USD
Are you getting the above entry? If so, then the above scenario will explain your predicament.
Cheers!
Rajesh -
Auto Assigned distribution rule to exchange gain/loss acct in Banking
Hi All,
I have a customer that have this requirement. They wanted the exchange gain/loss account generated by Incoming payment or Outgoing payment to be auto assign with profit center if it is defined at the payment screen.
The result now is, even though you have assign the distribution rule on each reconciled invoice during payment, double entries generated will not have any distribution rule assigned even though it involve exchange gain/loss that is P&L account.
Thanks in advance.
Regards,
MHHi Kamlesh,
Thanks for the reply. However, we can't assigned the distribution rule at Chart of account as the incoming or outgoing payment may involve different division each time thus the exchange gain/loss account should be assign to respective division. Thanks.
Regards,
MH -
Wrong CO object assign. on account for exchange gains/loss
Hi!
When running outgoing payments in transaction f110 realized exchange
gains/losses sometimes exists (account 796200). These gains/losses
should always be assigned to cost center 11100. Therefore, we have made
an default account assignment on this both in OKB9 and on the current
cost element. Despite this, when running transaction f110, account
796200 is assigned to the same cost center as the offsetting account
that the account payable invoice is set against in transaction fb60
when entering the account payable invoice. How can we solve this?Thanks for your answer!
Nope, I don't have to separate cost elements, one for gain and one for losses, because the customer wanted to use the same account (and cost element). Therefore, I used cost element category 1 on the cost element so that credit postings (in this case: gains) can be posted to the cost center. I donät think that's the problem.
Nope, current account is not assigned in KDB and KDF but that cannot be the problem either, since the system find the right account/cost element. There must be something else that is the problem!
Edited by: asafo364 on Aug 24, 2009 3:42 PM -
Accounting of foreign exchange gain /loss on imported material at invoice
Dear Experts,
This is with reference to the accounting of foreign exchange gain /loss on imported material at the time of invoice posting.
Presently all the capital expenditure related procurements are done against the WBSE as account assignment. The material is
procured against the project consumption account with WBS as the account assignment. Since the GR is done on day 1
at a particular exchange rate and the material is directly accounted for against the project consumption account,
there is no stock available.
The invoice is received subsequently and the same is accounted for on say Day 4 at another exchange rate, resulting in exchange gain/loss on account of difference in exchange rate between GR and IR. The same is accounted against a cost element with the additional account assignment as WBS derived from the purchase order.
However, the business requirement is to account for the foreign exchange gain/loss against the Cost center, since the
same cannot be capitalized as per the accounting standard.
In spite of maintaining the default cost center derivation against the foreign exchange gain/loss cost element in OKB9,
the invoice document line item is taking the account assignment from purchase order and not from OKB9.
We have referred the SAP note 105024 and implemented the same.
However, as per the note the following is possible "Use a substitution (Transaction OKC9) to transfer a cost center or a
statistical order as auxiliary account assignment to the document or to replace CO account assignment."
But when we are trying to check the same, the system is updating the required CO object i.e. cost center as auxiliary
account assignment and not as a replace CO account assignment.
We are looking at the option of replacing the WBSE with the cost center in the line item for CO account assignment.
Please help in this regard.
Thanks and Regards,
Mohd. Abdul Moghanihi,
in OBA1 settings please enter main bank account insteed of exchange gain or loss accounts. then that difference it will post to mail account only insteed of exchange gain or loss account.
with regards
Madana -
Payment Programe Foreign Exchange Gain/Loss
Hi,
Our Co. Code Currency is CAD. I Configured Payment Programe with Two Different Currency i.e. in CAD & in USD. I posted the Invoices in two different currency.
Now, while i was running payment programe, it clears the payment in appropriate currency. but if payment runs in USD then it's not showing me Foreign Gain/ Loss?
Can anybody please let me know why it's happened or How i can over come with this problem.
Your help will be really appreciate.
Thanks,
Niki Shah.Please help me,
When i run the payment program the system does not calculate the gain/ loss.
My company runs in USD when i make the payment in AUD it doe dont do the gain/loss.
What settings should i do or what am i missing, because it generating the payment but at the invoice date rate not payment date rate.
Then when i get to send the file to the bank, how do i reconcile the bank rate and the payment rate or how does the EBS know how to reconcile the two.
I will really appreciate it.
Thank you. -
Incorrect value of Auto.Gain/Loss Forex during GRIR 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 .
Regards
suresh -
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 -
Exchange Gain Loss Revaluation - Error Message No. F5429
Hi,
While peforming the foreign currency revaluation of open items as at 31.12.2007, using the T Code FAGL_FC_VAL, the system calculates the Exchange Rate difference but the documents do not get posted. The Document display shows an error -
Document ERROR 172 does not exist in company code 1000 or has been archived
Message no. F5429
Could anyone advise as to how this could be resolved and what could be the reason for such kind of error.
Thanks in advance.
Rgds.Raj,
Your question is a little confusing, Does it say " Unable to post the document" while you are trying to run the FCV for Open items.
Or is it like the document that got posted during FCV cannot be viewed by you ?
-Nandita -
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 -
Realized Gain/Loss and FC balance in Account Balance
Hi Experts,
I am still waiting to get answers on the following problem and looking forward for a good suggestion on how to adjust the entry for 2005 A & B versions:
1) We have customers and suppliers setup as MC and deal with FC transactions (example FC=SEK, and SEK is also our SC).
2) But these customers and suppliers will always pay up with LC (SGD) and bank-in the paid amount to an bank account setup with LC(SGD) only.
Problem:
If we select the the payment mean with the LC amount, we will face:
a) the FC amount was not deducted from the account balance and finally show up a lot of FC balance, and most tedious when we face partial payment...difficult to trace...and worst is bank recon only show LC amount...why not both???
b) the realized exchange gain/loss is not automatically calculated, even though the payment is in full by LC amount.
I have questions:
i) Why can't there should be a way that the payment entry (pay FC in LC) whereby on the BP (control a/c) line, the settled invoice amount (of each FC) shall be posted (acceptable with one line having FC amount and the bank line have no FC amount) ?
ii) Why can't the system generate the gain/loss at each payment time?
It is a more reasonable way.
Thank you and regards,
Joan Lim.Hi Kerstin,
I realized B1 2005 can't even fulfill basic finance requirements in that case.
In any MNC, for CFO, FC balances, realized gain/loss is most important factor for the company to look into cash flow.
Anyway, I have tried out many ways to explain to our CFO, finance department ...but all get disappointed with B1 2005.
I understand that B1 2007 already have the function, but as the huge $$ dump in on our add-on development in year 2007, it is not so easy to upgrade B1 2007 at all.
I am still looking forward for patches in 2005 for these functions.
Thank you and regards,
Joan. -
Exchange rate gain /loss is not posted in the contract
Hi Sap People,
Exchange rate gain /loss is not posted in the contract(cashflows). This is w.r.t SAP Banking Module.
The open items are posted with a certain exchange rate in the contract at the time of disburesment,while clearing thru FF68(incoming payment) with a new exchange rate the items
are cleared with the same exchange rate and the Exchange gain/loss is posted as zero.
Regards
RaviHi,
Check the exchange rate type for the disbursement. It is M for FF68. Check in configuration the exchange rate type. Also check the exchange rates maintained in OB08 for this exchange rate type and confirm if there is any difference.
Is it Loans module?
Regards,
Ravishankar -
Unrealized Foreing Exchange Gains
Hi gurus,
I have one question on foreign exchange gains/losses. I have 2 GR with the same price, when the invoice is post for the first one the material price is higher so I have material price losses and unrealized foreign exchange losses but in the second invoice posting the price is lower, I have a material price gains but I don´t have an unrealized foreing exchange gains.
Why isn´t unrealized gains reconize??
The country is UK
Example:
Exchange Rate in PO isn´t fix
Material price control: Standard
Document 1: Material price is higher in the invoice that GR, we post price losses and unrealized foreign exchange losses:
GR: Component Material 620,392.52 USD (381,592.15 GBP)
Clearing 618,179.28 USD (380,230.83 GBP)
Materials - Purchase Price Gains 2,213.24 USD (1,361.32 GBP)
Stock Material Purchases 620,392.52 USD (381,592.15 GBP)
Stock Material Purchases Offset 620,392.52 USD (381,592.15 GBP)
Invoice: Customer 1,751,018.05 USD (1,082,278.29 GBP)
Clearing 618,179.28 USD (380,230.83 GBP)
Materials Purchase Price Losses 1,132,838.77 USD (700,190.84 GBP)
Unrealised Foreign Exchange Losses 0 USD (1,856.62 GBP)
Document 2: Material price is lower in the invoice that GR, we post price gains but I don´t have unrealized Gains. Why??
GR: Component Material 620,392.52 USD (381,592.15 GBP)
Clearing 618,179.28 USD (380,230.83 GBP)
Materials - Purchase Price Gains 2,213.24 USD (1,361.32 GBP)
Stock Material Purchases 620,392.52 USD (381,592.15 GBP)
Stock Material Purchases Offset 620,392.52 USD (381,592.15 GBP)
Invoice: Customer 380,662.60 USD (235,281.91 GBP)
Clearing 618,179.28 USD (380,230.83 GBP)
Materials - Purchase Price Gains 237,516.68 USD (144,948.92 GBP)
Thank you in advance,
MartaHi Marta,
Please check the account determination configuration related to this. Transaction code OBA1.
Warm regards,
Murukan Arunachalam -
Compute Unrealized Gain/Loss and Provisions for Valuated Forex Contract
Hi Everyone,
Can anyone tell me how unrealized gain/loss or provisions were computed for forex contract?
I created a spot/forward transaction with the following details:
Product Type: 60A
Transaction Type: 102
Buy Currency: USD
Sell Currency: NZD
Local Currency: SGD
Forward Rate: 0.6864
Spot Rate: 0.7045
Swap Rate: 0.199-
I used midyear valuation w/ reset as a valuation category when I execute valuation in TPM1.
Your response would be greatly appreciated.
Thank you.
CantoHi Murlidhar,
Thank you for the response. Yes, I understand that a gain/loss can be realized based on exchange rate differences between when invoice entered/posted and when paid. That's only part of the gain/loss in minds of the accountants. The other part is gain/loss from time that cash was put into bank account. For example, we spend $100 USD to purchase and deposit R$167 BRL into Brazil bank account. Three months later that same R$167 BRL is worth only $85 USD. At that time we post and pay Brazil invoice on same day in amount of R$167 with no exchange gain/loss on the invoice. System posts credits of R$167 BRL and $85 USD to bank account G/L account. System does not record gain/loss on payment because invoice currency translation date and paid date are same. However, the bank account G/L account balance now reflects R$0 BRL and $15 USD on which system calculates a $15 USD unrealized gain/loss at month end. This unrealized gain/loss on the bank G/L account posts and reverses each month just as you said but never goes away. In minds of accountants the $15 USD gain/loss should be recognized. How best to recognize the $15 USD gain/loss, that is the question.
Thanks
Steve
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