Correct setting for exchange rates differences

Hey SAP B1 experts,
I have a problem with automatic generated exchange rates differences in B1.
Situation:
- I inserted all correct general ledgers in the g/l account determinations.
- The seeting in the item masterdata for "set g/l accounts by" is switched to warehouses.
- In the accounting setting in warehouses I inserted the p&l general ledger for exchange rates differences.
- I create a case which includes a exchnage rate difference.
- For the automatic generated entry the system use the general ledger which is inserted in the setting for "variance account" from the warehouse settings.
Is there any other general setting which is response for the using of the general ledgers for exchange rate differences?
Help!!
Regards
Thomas Bartels

Hey Shanker,
thank you for your realy quick answer.
In administration -> setup -> inventory -> warehouses I inserted the correct p&l account for the exchange rate differences in the seeting field "exchange rate differences", but the system don't use this setting. In my test case the system use the account from "variance account".
My questions are on the one hand why and on the other hand is there an other setting for using the correct account setting.
Regards
Thomas

Similar Messages

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
Regards
Iqtidar

In 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

Default setting for Exchange rate ..?

Hi All
Can anybody give some inputs , how to make exchange rate fixed tick mark in Import PO as default setting .
Any configuration part is there to do this settings in MM-IMG.
Expalin me step by step procedures to make as default as exchange rate fixed in import PO.
Thanks
sap-mm

Hi ,
I don't think there is configuration setting.
You may try with a user exit . Consult your ABAP team for the requirement.
Regards
Ramesh Ch

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
2100,5110000 are profit center and cost cneter assigned with these accounts.Could you please let me know why system didn't put any foreign exchange difference in accounts( Realised FX losses and Gains).Thanks
Regards
Iqtidar

Hi 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 not going to the correct GL account

Hello,
In the transaction OB09, I have given the GL account 702000 for exchange rate difference realized loss and gain.
I have also maintained the exchange rates in the transaction OB08.
In transaction F-44(clear vendor), I give the foreign curreny(EUR) in the entry screen. When I do a charge off difference, however, I need to enter the amount in local currency(USD) because our bank operates in the local currency. When I do a document simulate, it puts the exchange rate difference into another GL account (703030 - that we have defined for unauthorized deductions) and not the one defined for the exchange rate difference(702000). This does not happen if I enter the amount also in the foreign currency.
Could anyone tell me the reason for this and the correction measures.
Any helpful suggestion will be greatly appreciated.
Thanks,
Rugmani
Edited by: Rugmani Rajan on Aug 27, 2008 11:35 AM

Hello,
The original problem is resolved. The current exchange rate was not getting uploaded to the system and as a result, the old exchange rate was being used. So it was putting the difference into the other account.
That has given rise to another problem. We use the TBEX to upload exchange rates from a centrally maintained spreadsheet. The upload is giving the following errors:
Securities master data EUR do not exist!
Interest rate master data CNY is missing
Suggestions and correction measures will be greatly appreciated.
Thanks,
Rugmani

F-03 EXCHANGE RATE DIFFERENCE

hi all,
<b>In F-03, system ask for exchange rate difference for Open items G/L accounts.</b>
In this account all the transcation is in local currency(INR) but system is asking for exchange rate difference for open item G/L accounts, which i do not want.
Please tell me any setting to be done in SPRO for deactivating wrt above
regards,
Arun prasad

Hi,
Please go to OB08 and define the exchage rate like both the ways
INR = USD
USD = INR
Please make sure the calculation should be correct.
Warm Regards,
Sivakumar Sathiyamoorthy

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 & Regards

Hi,
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 in SAP MM

Hi experts,
Is there any way to bring the exchange rate difference at time of invoice to some other account rather than stock account.
The scenario is; for eg.
in PO : 1 USD = 50 INR
@ GRN 1 UDS = 55 INR
@ INV 1 USD = 60 INR
At the GRN, inventory will be updated with 55 INR.
At the INV, system will value vendor at 60 INR, but in Standard SAP, the difference of 5 INR will be updated as below.
1. exchange rate diff. will be posted to stock account if available stock qty is >= invoice quantity
2. exchange rate diff. will be posted to exchange rate diff acct (as per KDM) ,if available stock qty is 0
3. exchange rate diff. will be posted propotionately to stock account and exchange rate diff acct (as per KDM) ,if available stock qty is < invoice quantity
Is there any way, that system will post the exchange rate difference to separate account , rather than inventory.
It is because in client audit, the audit concern say, according to Indian standards, inventory should be valuated only one time in imports. In case of any differences, it should post to separate account and not inventory. They say SAP allows that. Client asked us the same.
I have checked, OMRW, but even after giving 'N' in ERD setting, system is posting to stock account only.
Any way to meet this??
Regards
sBk

Dear Sujith,
Exchange rate differences for a moving average price material will be
posted to the stock account, provide there is sufficient stock coverage.
Transaction OLMR -> Incoming invoice -> Configure how exchange rate
difference are treated.
If you set this selection field then the settings in the ERD Setting
column for this currency type are no longer relevant. The system
calculates and posts exchange rate differences between order-related
goods receipts and invoices not just for materials with standard price,
but also for:
* Materials with moving average price
* Account-assigned transactions
* Planned delivery costs
Because of this setting the exchange rate differences are posted to KDM
account instead of stock (BSX) or price difference (PRD) account
If you uncheck the field, exchange rate differences will be posted to
the stock or price difference account, for a moving average price
material, based on the stock coverage.
Please refer Sap note 980402 in detail
regards,
lalita

Exchange Rate Differences

Hi experts,
i understand the general concept of exchange rate differences ie Rate at which one currency may be converted into another. The exchange rate is used when simply converting one currency to another
but i need to know where it will affect in SAP and what is the use in SAP?
regards
anand

Hi Anand......
Please read teh following para......
Exchange Rate Differences
Use
When you maintain a foreign currency (FC) business partner and/or accounts, all related bookkeeping is conducted in the FC. As the bookkeeping system must also be conducted in local currency (LC), every FC transaction of this nature also is expressed in LC according to the FC exchange rate on the date of transaction. The daily fluctuations in the FC exchange rates create a situation whereby the balances in LC and FC do not match. The automatic exchange rate differences are designed to periodically recalculate the LC and FC balances, according to the exchange rate on the day the differences are calculated.
SAP Business One can provide recommendations for executing automatic journal transactions for exchange rate differences in FC business partners and accounts, correct to a given date. The function of the program that calculates exchange rate differences is to reconcile between the FC card balance and the LC balance, considering the fluctuation in the FC exchange rate.
To access the Exchange Rate Differences function, choose: Financials ® Exchange Rate Differences.
Hope this may help you to understand the concept of Exchange Rate Difference....
Also check this Thread.....
Regards,
Rahul

Exchange rate difference in f-03

Hi all
pl. help me. I am not able to clear open item in f-03 which is maintained in BRL. I am posting payment in usd. the error reads:
Ex.rate diff.accts are incomplete
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.
I have called transaction OBA1, and entered the GL a/c and currency BRL. Even i cannot save it says
"Enter line items first or choose open items"
pl reply friends urgently
Thks
uma

Hi Uma,
Exchange Rate has been defined both the end. Like INR = USD and USD = INR.
Here you are not yet defined GL account for Exchange Rate Difference account (Gain or Loss).
T.Code OB09 Define G/L , Currency and Currency Type.
Before that you would have the GL account please create in FS00.
Hope it will help you.
Regards,
Sivakumar Sathiyamoorthy
+919916131375

Exchange Rate Difference Error

Hi,
While posting payment through F-58, we are getting below error :
Ex.rate diff.accts are incomplete for account 0010500400 currency INR
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.
Proceed
However, all the necessary settings are made in KDF & KDB. Here we are processing payment for local vendor & the PO, GR, IR is done in INR then at the time of processing payment its giving above mentioned error. We are unable to understand that why system is asking for exchange rate difference account. Please suggest as the issue is urgent.
Regards,
Varsha

Hi Varsha,
As the message mentioned in detail, please check your configuration in tcode OBA1 again.
For Transaction type KDF, you double click to your GL account, and maintain the Valuation loss/gain, balance sheet adjustment in there.
For your ref:
You can read more information about this error in SAP note 12962 - Clearing Foreign Currency Items
https://websmp130.sap-ag.de/sap(bD1lbiZjPTAwMQ==)/bc/bsp/sno/ui_entry/entry.htm?param=69765F6D6F64653D3030312669765F7361706E6F7465735F6E756D6265723D313239363226
Regards,
Julie

Settlement of exchange rate difference

Hi All,
After doing final payment of PO in which Network is used as cost object, i.e. through transaction F-58, and if the PO is of import nature and in different currency, an automatic line item of exchange rate difference occurs. While doing settlement of the Network to roll up its related amount to main project, all amount gets settled while exchange rate difference and liquidity damages does not. Isn't PS tightly integrated with FI in such cases? Any suggestions on how to settle such amount?
Thanks
-Nayab

Hi,
You said about automatic creation of new line item for exchange rate difference, What is the Item category for the new line item? to which cost object is this line item account assigned ? For it flow back in to Network, it should be account assigned to Network. If creation of this new line item is achieved thru development, then also update it to account assign the new line item to Network.
When you post the GR for a P.O , GR/IR acct is credited and Inventory acct is debited by the material proce. If it proj spec item and Non stock then cost is recognised as actual cost in project.
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.
At period end you can distirbute the cost from Price Diff account to Orgin objects of cost i.e project. Catch here will be to identify how to distribute to each proj from Price Diff account. May be you can think of some common % or use SKF (Statstical Key Figure).
Thanks
Saikishore.Ganga.

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?
Cheers

Hi,
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

Exchange rate difference while cancellation

All,
I have done MIGO for Imported items .
Accounting entries generated .
Suppose Exchange rate is 1 EUR = 5 EGP
Suppose it is dr : 100 EUR (stock)
                    Cr: 90 EUR (GR-IR)
            PPV Cr : 10 EUR
While doing the MIGO Cancellation for same document ( 102 Mvt type ) ,
Accounting entries reversed ,
but coming as different .
        Cr : 99 EUR
        Dr : 90 EUR
PPV Dr : 9   EUR
But while displaying in Local currency , entries while MIGO and also for reverse are absolutely same .
How this is happening ?
Kindly advise.
regards

Hi,
You cannot make the default setting for exchange rate fix in PO. When you make the ex.rate fix you need to enter the exchange rate in the adjacent field. This rate value may be as per the billing of ladding date or Letter of indent date depending on your business.Therefore in case of import PO please check /change the rate and fix it before making the GR.
regards
anbumani

Exchange Rate Differences for Alternative Currency

F110 payment run for invoices posted in foreign currency creates automatic postings to exchange rate difference (realized gain or loss) accounts linked to KDW.
What we are trying to do is to use another set of GL accounts to be posted automatically aside from what are defaulted in the KDW in OBA1.
Questions:
- Is F110 fixed to get KDW transaction to get which GL accounts will be posted to?
- Can we define another transaction with different set of GL accounts to be posted to? If so, how and where do we configure this so that F110 will not be defaulted to get KDW.
Thanks,
Ommar

Hello JeiMing,
Please reference to the following Note at link https://service.sap.com/sap/support/notes/1041007 for a detailed explaination on this Exchange Rate difference issue.
Hope this is helpful.
Regards,
Xu Zhang
SAP Business One Forums Team

Correct setting for exchange rates differences

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