Can we writeoff/any other solution for difference amount in group currency?

Question

Hi All,
One of the G/L account are getting difference between Local Currency (Co. Code Currency - CAD) and Group Currency (USD) as follows. Our Client wants to clear this amount in Group Currency (USD). Can any one help me out on this?
Problem description: at month end of february 2008 the Cumulative balance needs to be zero (blank) and it is zero in the local currency (CAD)
whereas it is showing an odd amount of USD 528 for the same, which we want to get rid of somehow,  to make it show as blank. in USD also for the month end february 2008.
Hence please suggest any method to write off that balance/ reverse / any other alternative. so that both in USD and CAD it would be blank for month end february 2008
To view: FS10N  with currency USD and with currency CAD

Answer 1

Hi Prasad,
In Logistics Invoice Verification, when you enter an invoice in foreign
currency, the system automatically translates the foreign currency
amounts to local currency. The system calculates the exchange rate using
the following rule:
1.If the buyer entered a fixed exchange rate in the purchase order, the
system uses this rate to translate the amounts to local currency.
2.If an exchange rate was entered in Invoice Verification, the system
uses this rate to translate the amounts to local currency.
3.If an exchange rate was entered neither in the purchase order nor in
Invoice Verification, the system uses the exchange rate pre-defined in
Customizing for Financial Accounting valid for the posting date.
Exchange Rate Differences
If a purchase order is entered in foreign currency,the amounts are
translated from foreign currency into local currency at goods receipt.
If you enter the invoice for the purchase order in the foreign currency,
this can lead to currency translation differences between the goods
receipt and the invoice receipt.
How these differences are posted depends on how your system is
configured in Customizing for Invoice Verification
Exchange Rate Rounding Differences
When an invoice is posted in a foreign currency, the amounts are translated into local currency.Since the system rounds off the amounts in each posting line, this can lead to rounding differences due to the currency translation.
These differences are posted to an expense or income account.
Addition in transaction OB22 for the second local currency, it should be defined 'Translation taking transaction currency as a basis' is defined.
Pls. also  refer to note:335608  Trnsln of 2nd and 3rd lcl crcy fm 1st lcl/trns crcy.
I hope the above information helps you out......
Best Regards,
Gladys Xing