Avoid posting of realized exchange rate differences in 2nd local currency
Dear SAP fans,
The situation here in our company is that a company code is set up with NZD as 1st and EUR as 2nd local currency (currency type 30 "Group currency" for EC-CS consolidation).
Therefore, all postings (and balances) are also translated and saved in EUR (with the current exchange rate).
We now have an open item managed G/L account for prepaid expenses, which is used to collect postings which are then cleared later. It's however no payable/receivable account for vendors/customers. Therefore, it doesn't make sense to post realized exchange rate differences when clearing this account. This is however what SAP wants to do when we try to clear it.
For example, if I post today 100 NZD and two months later again 100 NZD to this account. If the NZD vs. EUR exchange rate changed in the meantime, then SAP won't let me clear this account without posting realized exchange rate differences, which makes however no sense.
Does anyone of you meet this problem before? Could you please give me a hint?
I thought about setting the "Only balances in local currency" indicator in the G/L account master but this helps only for differences between local and document currency (and not for differences in 1st and 2nd local currency).
Any help is highly appreciated!
Thanks and best regards,
Peter
Dear Padma,
Thanks for your answer. The customizing activities you mentioned are already set up in the system. This is not our problem.
The problem is however, that we don't want SAP to post automatically realized exchange rate differences between 1st and 2nd local currency as this doesn't make sense in this business case.
It's about an open item managed G/L account which is used to collect posting which are later cleared. It's not a payable/receivable account for customers/vendors where the posting of realized exchange rate differences makes sense.
We've thought about several solution which unfortunately all didn't help us:
- Don't setup realized exchange rate differences accounts or set them up only for group currency (in OB09)
- Set indicator "Only balances in local currency" in G/L master data
Best regards,
Peter
Similar Messages
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Diffrent Exchange rate type for 1st Local Currency
Hello,
I have following problem:
E.g.
One company code in Germany having Local Currency as EUR and Another Company Code in France having Same Local Currency as EUR.
If i am posting transaction say on 12/09/2008 in USD for both company code and Exchange rate in Two Countries are as follows:
Germany -EUR to USD -1.25 on -12/09/2008 EXRTTY: M
France -EUR to USD -1.50 on -12/09/2008 EXRTTY: M
By default system picks up "M" exhchange Rate Type [EXRTTY]. And we cannot change exchange rate type for Currency "10" Local Currency.
Please help me how take care of such situation.
Regards,
ManishHi,
No i want system to pick diffrent exchange rate so i want to change exchange rate type for 1st Local Currency.
But that area is greyed out. Is there any system setting where i can maintain diffrent Exchange rate type for 1st Local Currency instead of "M". or is there any other way out that system will pick up diffrent exchange rate.
Problem is that two entities are operating in different market having same local currency but conversion rate for Foreign currency will be diffrent e.g. Local Currency EUR Exchange rate between EUR -USD in France 1.20 and Exchange rate between EUR-USD in Germany 1.25.
Is there any wayout to deal with such situation.
Please suggest.
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Manish -
Automatic posting accounts for exchange rate difference.
Guys,
My clients wants to write a check in GBP pound sterling, and for that I set up house bank for GBP and did all the other configuration steps in FBZP.We successfully printed out the check thru F110.Now when we try to mark the check as "encashed" thru FCHR,The log says 1 check selected and marked as encashed but no posting docunments get generated as system shows an errored out session,I looked into SM35,the job log says" exchange rate difference accounts are incomplete for acount 161511 currency GBP".System takes me to OB09 which is account determination for Ol Exch.rate differences.Should I update a/c 161511 here? Please note account 161511 is not a foreign currrency account.Its main cash bank account(US$ account) which I set up in House bank FI12.So in OB09 I dont see that account 161511.Wht should I do ?System also takes me to OBA1-maintain FI configuration Automatic posting. DO I need to do something in here too ? Please advice.Thanks
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IqtidarIn OBA1 > Exchange Rate Dif.: Open Items/GL Acct
Check the example below.
Chart of Accounts xxxx
G/L Account < GBP A/C from which you are paying >
Ex Rate Realized
Loss P&L - Ex Loss Realized A/c < 830301>
Gain P&L - Ex Gain A/c Realized <720201>
Valuation
Val.loss 1 P&L - Ex Loss Unrealized A/c < 830302>
Val.gain 1 P&L - Ex Gain A/c Unrealized <720202>
Bal.sheet adj.1 For. Currecy Reserve < 520501>
Translation (similar to valuation)
Loss 830302
Bal.sheet adj.loss 520501
Gain 720202
Bal.sheet adj.gain 520501
Is this what you were after? The logic behind different GL postings should be able to explained by a person with an accounting background. Do let me know if you have any specific questions.
Nadini -
Realized exchange rate difference in local and group currency
Hi Friends,
For a company code with local currency as Euro and group currency as USD, the setting in TR code OB22 for group currency is: Translation taking first local currency as a basis. When the open items are cleared, SAP posts difference in local currency and group currency. Sometimes, document currency is also group currency i.e. USD. The realized exchange difference is posted in Euro but it is not converted from Euro to group currency. Instead, system just calculates difference in group currency by comparing the value in group currency at the time of original transaction and when the transaction is cleared. Does anyone have dealt with such requirement and is there a way to be able to translate realized exchange differences from local to group currency?
Thanks and regards,
Pinky>Sometimes, document currency is also group currency i.e. USD.
Can you explain, it's because of your settings or because of SAP? -
Automatic posting accounts for exchange rate difference- OB09
Hi Nadini,
I did the assignment of accounts in OB09 as per yur example and I was able to post the document. But I see in realised FX losses systems didnt' put any FX difference amount but just carried out with zero balance.Is that a matter of concern or its normal.
1 50 161500 Main Account 3,996.00- GBP
2 40 161511 Dallas Check Acct 3,996.00 GBP
3 40 650040 Realised FX Losses 0.00 GBP 2100 5110000
4 50 700020 Realised FX Gains 0.00 GBP 2100 5110000
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Regards
IqtidarHi Iqtidar
There will be no FX Gain or Loss in GBP as this is the currency of the bank a/c. Fx Gain/Loss will be in USD. Hance if you go to a display document screen (FB03) for this partciular document and click on "Display currency" in order to view company code (local currency) you should be able to view the Fx Gain/Loss.
Rgds
Nadini -
Exchange Rate difference posting during MIRO posting
Hi ,
We are facing an issue for exchange rate difference posting during MIRO.
PO creation , GR posting & IR posting done on same date. Vendor in PO has different currency than company code currency. Exchange rate maintained in OB08 for this period is taken in PO.
PO value & GR value is same. Due to raw material cost there was price difference posted during GR posting.
(i.e. Raw material cost - GR/IR value = Price difference amount)
During posting MIGO, 3 accounts got posted.
Raw material cost account got debited & offset credit to GR/IR account & price difference account (in vendor & company code currency also)
During posting MIRO, 4 accounts got posted.
Vendor account got credited with GR/IR amount & offset to GR/IR account debit.
Exchange rate difference account got credited & offset to price difference account (in company code currency only)
Since PO creation , GR posting & IR posting done on same date, then why system has posted exchange rate difference account in local currency only during MIRO posting ?
Your inputs appreciated.
Thanks & RegardsHi,
there is a setting in configuration of logistics invoice verification where you can control the calculation and posting of exchange rate differences. If you had the setting active that exchange rate differences are calculated against a planned exchange rate, that might lead to the kind of postings you describe. Please check.
best regards, Udo -
EXCHANGE RATE DIFFERENCE WHILE CUSTOMER CLEARING
Hi,
while clearing the customer through f-32, system is not picking the exch. rate. gain/loss a/c. Also when I am clearing the payment on same date as the payment date, system is not picking the same exchange rate as it is for payment.
Regards,
akashHello Akash,
i think this may help:
The currency rate picked up by the system is the current one, not the
rate in the posted document.
However, this can be avoided by setting the flag
flag "XSLTA" (no foreign exchange rate when clearing in Local currency).
in fs03.
Please set this flag and then simulate the clearing with currency
(local currency). Exchange rate differences items are not posted.
Please refer to the field on line documentation for and example and
further information.
Kind regards,
Jon -
Exchange rate differences to be added to item cost
Hi All,
My client wants all the exchange rate differences existing in the Purchase process should affect the item cost?
How can i do this?
thanks
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Md.nazeer ShaikhHi All,
Thanks for the replies.
Scenario. My client mainly deals with import export business.
When he post the GRPO the exchange rate may be 55 but when he posts the invoice it may be 55.5 in this case system will post the difference amount to the exchange rate difference account.
Second case when he make the payment it may be 60.Again the system by default posts to the exchange rate difference account.
My client wants everytime whenever he finds this scenario system should automatically increase/decrease the item cost.Is it possible in SAP B1
thanks
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Md.nazeer Shaikh -
Exchange Rate Difference in PO with cost center assignment
Hi All,
In case of exchange rate difference in a PO with a cost center assignment the system Do not post the difference in the exchange rate difference account (maintained under transaction type - KDM - in T-code OBYC). However if the PO is a normal material PO it posts the exchange rate difference to the exchange rate difference account.
I want the exchange rate difference to be posted to the exchange rate difference accout for PO's with cost center assigned as well.
I have searched for SAP notes and found that note # 980402 & 1102481 provides a solution for this issue - but it seems both the notes are valid for 4.6 and 6 release only. We are on ECC 5.0
I have also checked note # 1136145 for this and implemented in the system successfully without any luck.
Can some one please help me with a solution for this issue.
Thanks and regards,
AnkurEven I have implemented this note in our 4.6C system for account assigned POs, but no luck. Please let me know if are successful.
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Neel -
Exchange Rate difference in MIRO
Hi,
A Import PO made at 63.52/EURO and Exchange rate Fixed not ticked.
When i do the MIRO,the exchange rate shows as 56.9/EURO and the field is greyed out.
How the Invoice can be posted and where the differnce will go.
Is there any configuration for this?
Regardshi,
If Exchange rates difference has occured, then its posted to the Exchange rate difference account....
You can make it fix by using the FIX Exc. rate indicator at the PO header...By this the rate will be fixed throughout the process ie. from PO to IR...
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Priyanka.P -
GR / IR exchange rate difference hitting Asset account
There is exchange rate difference during GR and IR , While posting invoice this exchange rate difference getting posted to Asset , which should not happen , Should get posted to Exchange rate Gain /loss account
Please help me how to resolve this issue .Hi:
Please check account assignments in OBA1..KDF ,,See if GRIR clearing accounts have been maintained there or not. If not then they should be maintained there . Further double click after maintaining account there and there you will have to assign GL account for exchange rate gain and loss . Also check in OBYC the assignment of GRIR clearing account,
Regards -
Posting of Exchange rate differences in parallel currencies
Hello experts,,
We are on ECC 6.
When we enter an incoming invoice with MIRO and the current exchange rate differs from that in the PO, the exchange rate differences in local currency and in parallel currency (group currency) post to different accounts.
Is this a standard feature / behavior? If so, where can i find the settings.
Shouldn't the postings in all currencies (except doc currency), in the event of exchange rate difference post to the same account?
The material ledger is not active.
We have maintained a local currency and a group currency.
Example to illustrate my issue -
DC = JPY
LC = SGD
GC = USD
PO for asset.
PO value = 100000 JPY
Ex rate not fixed in the PO.
Ex rate at PO -
100 JPY = 1.6 SGD
100 JPY = 0.85 USD
Ex Rate at IR
100 JPY = 1.7 SGD
100 JPY = 0.9 USD
When IR is entered,
The exchange rate difference of 100 SGD (@ 0.1 per 100 JPY) is posted to the asset. No posting in USD (though there is a balance of 50 USD).
At clearing (Transaction FB1S - GL account clearing) the exchange rate difference (in GC only, because no balance in LC) of 50 USD (@ 0.05 per 100 JPY) is posted to the Exch. rate difference GL acct.
Thanks in advance for your advice/solution.
B. Regards,
HalaswamyHello,
1. You have to assign Forex GL's for the reconciliation accounts in OB09.
2. At the time of payment for incoming invoices, system can read the valuation differences and it will post to Realized Gain/Loss accounts and B/S adjustment account.
3. You can consider this amount to issue bonus to your customers.
Rgds
Murali. N -
Exchange rate differences posted when clearing but not FAGL_FC_VAL
Hello,
I need to configure accounts for exchange rate differences for clearing, but I if I configure just "account for Realized Exchange Rate Losses" and not " Account for Loss from Valuationu201D in OBA1, the account is selected in month end valuation ( FAGL_FC_VAL) and I do not want it because it ends on error.
Do you know how to cover this requirement?
CheersHi,
You can exclude the account in the the forex reval run by excluding the GL account by specifiying the account in the variant used for period end processing.
Or you can use valuation area for period end processing in FAGL_FC_VAL and configure based on which the account if not maintained in the valuation area would not post.
Regards
K.R -
Post exchange rate differences to separate account on invoice verification
Dear expert,
I'm facing a problem and need your guidance related to exchange rate differences between Goods Receipt and Invoice verification caused by time differences
My company buy an asset using purchase order with account assignment.
As an example:
Asset price on PO : 100 USD
On Good receipt (Exchange rate 1 USD = 9,000 Rp)
Journal created
Asset 900,000 Rp
GR/IR Clearing 900,000 Rp
On Invoice verification (Exchange rate 1 USD = 10,000 Rp)
Journal created
GR/IR Clearing 900,000 Rp
Asset 100,000 Rp (Exchange rate differences)
Vendor 1,000,000 Rp
My Company wants to put "Exchange rate differences" into separate account (Gain/Loss realized account) instead throw it on asset because asset value would be change. How make it happend?
I already try to configure KDM (Exchange rate differences) and OB09 and still exchange rate differences posted into assetHi,
Check config in transaction code Oba1 and Obyc. check posting G/L account of PO (KBS), n try to change in KDR Class.
Regards
Sanjeet Kumar -
Problem while 're-posting' a cancelle Invoice with Exchange Rate Difference
Hi Gurus,
We are facing a problem while re-posting an Invoice with Exchange Rate Difference. I say re-posting because this invoice was previously posted and reversed on the same date. Here is the scenario along with the relevant postings:
1)
G/R is posted in September when the exchange rate for dollar was, say, Rs. 49 = 1 USD.
Posting:
Service A/C.....100 USD (Rs. 4900)
To SR/IR Clearing A/C...100 USD (Rs. 4900)
2)
MIRO is done in October, when the exchange rate was, say, Rs. 48 = 1 USD. Thus, the exchange difference posting was done in the respective accounts.
Posting:
SR/IR Clearing A/C......100 USD (Rs. 4900)
To Vendor A/C...........90 USD (Rs. 4320)
To TDS A/C..............10 USD (Rs. 480)
To Exch. Difference A/C. 0 USD (Rs. 100)
This was the correct entry, however we missed out some TDS codes and thus needed to reverse this entry and repost it.
3)
Now this invoice was reversed (T.Code MIRO) in october itself on exactly the same date on which invoice was created, and it resulted in the following postings:
Vendor A/C......90 USD (Rs. 4320)
TDS A/C.........10 USD (Rs. 480)
To SR/IR Clearing A/C...100 USD (4800, i.e. 48 * 100, Rs.48 being the exchange rate in october)
4)
Now when we try to post MIRO again, it is posting the following entry:
SR/IR Clearing A/C......97.96 USD (Rs. 4800)
Exch. Difference A/C.....2.04 USD (Rs. 0)
To Vendor A/C........... 85 USD (Rs. 4080)
To TDS1 A/C............. 10 USD (Rs. 480)
To TDS2 A/C............. 5 USD (Rs. 240)
This is a wrong entry. SR/IR clearing A/C should have been debited by 100 USD (Rs. 4900), and the Exch. Rate difference account should have been credited by 0 USD (Rs. 100)
Can someone please help us with this. What the system seems to be doing is, that when the Invoice was reversed, the value that got reversed for SR/IR Clearing A/C was 100 USD but with Rs. 4800 instead of Rs. 4900. Now, when we try to repost the invoice, the system divided this value by the exchange rate prevalent in September, i.e. Rs. 49, thus the resultant value 97.96 USD (i.e. 4800 / 49).
Please help.
Thanks!
Regards,
Angad NagpalSolved.
The final entry is correct, as the net result in the G/L balances is the same. For further information please refer to notes 116250 and 46564.
Thanks!
Regards,
Angad Nagpal
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