Basic questions about Exchange Rate Differences
Hi Experts?
I have few questions about exchange rates:
1. Currently in 2007, under what circumstances are exchange rate differences not posted automatically? In the previous version, it was this case when invoices are linked to payment, and manual exchage rate differences had to be run.
2. What are unrealized exchange rates? and When do unrealized exchange rates occurs?
3. In account oo logical pinciples, why is there a need to auto reverse Exchange rate differences or Conversion rate differences during the opening of a new posting period??
Much Thanks!
Warmest Regards,
Chinho
Hi Chinho,
you may find useful info in this wiki:
[How does SAP Business One deal with Realised and Unrealised Exchange Rate Differences? |https://wiki.sdn.sap.com/wiki/pages/viewpage.action?pageId=60654139]
& also these 2 EES:
[Exchange Rate Differences|https://psd.sap-ag.de/PEC/calendar/html/recording.php?hck=7a4f07ef7ac81ec31e04d55faffe33bdde93ec2398c338760e0d98adab7ba5acf2c39b2da1782f45e8a5a4d337dedcc647afebddd531782af42bafae98ce7ed5]
[Exchange Rate|https://psd.sap-ag.de/PEC/calendar/html/recording.php?hck=e5397f14c44f8df754617194051dab1ad38f59f08580406c2efd59aa4c0f71616713c2abe76bc503e08f2f5eda4863634f6fe99ad39d46c947c09623b91e53ca]
As a rule, in version 2007 it's the unrealised exchange rate differences on the BP side that are relevant since with the introduction of the unified internal reconciliation engine realised partial exchange rate differences are automatically posted. You also use the functionality to post exchange rate differences for FC GL accounts at a particular execution day.
All the best,
Kerstin
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OB22
Crcy Type 30 Group currency Currency USD
Valuation Legal Valuation
ER Type M Standard translation at average rate
Srce curr. 1 Translation taking transaction currency as a basis
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Co code currency: ZAR
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I have checked several notes (331910,etc) but I can't seem to find the answers to my questions.
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Thanks in Advance.Dear Friends,
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Ex.rate diff.accts are incomplete for account 0010500400 currency INR
Message no. F5063
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https://websmp130.sap-ag.de/sap(bD1lbiZjPTAwMQ==)/bc/bsp/sno/ui_entry/entry.htm?param=69765F6D6F64653D3030312669765F7361706E6F7465735F6E756D6265723D313239363226
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Any difference amount occured during MIRO, GR/IR account is debited by same amount as it was credited while MIGO and Difference amount goes to Price Diff account. And vendor is credited by the MIRO amount.
Vendor Credit = Debit GR/IR + Debit Price Diff account.
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Hi,
Exchange rate difference account is showing more than invoice or advance amount (USD V/S INR)
1) we have done down payment of customer. (USD V/S INR RS. 40/- PER DOLLAR)
2) Invoice posting also done (RS. 42/-)
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At the time of clearing exchange rate difference account is generated automatically (back ground calculated).
But exchange rate differemce account is displaying amount is more value. This value is more than invoice and advance value.
But question is how this much of value is getting in exchange rate difference account.
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There is a SAP note 357758. Please refer the same and also contact SAP OSS.
Rgds -
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PO has been raised with foreign currency. At the time of GR, the same price has been paid at the same exchange rate. Only the other charges like custom and CVD charges were paid in an increased exchange ratio. Hence, all these exchange rate differences got posted to the accounts assigned in KDM/KDR. But when I see in CKM3, exchange differences are not found. .Is there any setting imissing or should be done?.Hi,
Thanks Shaubhikg. This OSS notes describes about how the closing entries takes care of the both price and exchange differences of the material procured and production variances. But still my answer is unanswered.
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2. Exchange Rate:
I maintained exchange rate in OB08. while doing MIRO, how system posts exchange rate differences.
which G/Ls will trigger.
in case of conditions like customs duty, cess etc how system will behave? which G/Ls will trigger?
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KKHi,
According to first question:
For unplanned cost You have configuration for plant code:
Configuration: SPRO->MM->LIV->Incoming invoice->Configured how unplanned delivery cost are posted
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G/L account for unplanned cost is taking from PRD(for Distribute among invoice items) or UPF(for Different G/L line) transaction from OBYC tcode and for FRA/FRB condition is FR1.
Question 2:
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G/L account takes from KDR transaction from OBYC tcode.
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Exchange rate differences not posted in paralel currency
Hi gurus,
I have a difficult one. I have the followign situation:
1) We are using CLP for Local Currency (pesos chilenos)
2) We are using USD for Local 2 Currency (group)
3) We have implemented the Material Ledger (USD currency)
We have a problem when we post an Invoice (trx MIRO) with different date of the good recive. The currency of the purchase order is the same as the local currency (pesos chilenos CLP).
The problem is that the posting in the paralel currency does not post the Exchange Difference between the GR and the IV, instead the posting is with charge to the u201Cprice differenceu201D.
Does any body know if it is possible to post this difference as "Exchange rate difference?.
Regards,
SantiagoHi,
Thanks Shaubhikg. This OSS notes describes about how the closing entries takes care of the both price and exchange differences of the material procured and production variances. But still my answer is unanswered.
My worry ts that since the exchange differences were captured in accounts of KDM but not seen when I see the material in CKM3. Any more inputs from you or from other fellow brethern!
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Exchange Rate difference between PO , GR and IR
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I have a question, Does anyone know how to handle the PO exchange rate difference between PO , GR and IR time.
For example
1. PO creation on Jan 2009 - exchange rate = 1.2
2. GR creation on Feb 2009 - exchange rate = 1.5
3. IR creation on March 2009 - exchange rate = 1.7
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AlexHi Alex,
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Exchange Rate Differences function and when to use
The company I am asking about is based in the US, but also has offices and transactions in Canada. Does the Exchange Rate Differences function need to be run at month-end before finalizing the financials, in order to "re-value" the Canadian accounts, such as Accts Receivable, Accts Payable, Fixed Assets, etc. that may not have changed during the last month (no activity during the "current" month)? The financials are expressed in US Currency. Transactions during the month to the various Canadian accounts are "re-valued" at the time of the transaction entry, since the exchange rates are updated every day in the system. We need a clear-cut idea of when the Exchange Rate Differences function should be run.
I would say that you do need to do it. This is very important to ensure your account receivable control account (or payable) is revalued at the end of the month based on the new exchange rate.
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Vincent
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