Currency exchange rate differences in rebate agreement settlements

Hi Experts,
My customer has issue in Rebate agreements and final settlements.
ISSUE:
Rebate agreement currency is EUR
Billing document currency is EUR
Company code currency is SEK
Initially ( Before final settlement)
The accrual amount in sales volumen 3151.05 EUR
the accrual amount in drill down 3152.05 EUR
After Final settlement
The accrual amount in sales volumen 2.62 EUR
the accrual amount in drill down 3152.05 EUR
The accounting documents shows after final settlement
customer A/c 3151.98 EUR credit
Expenses A/C 3151.98 EUR debit
Accrual A/c 3149.43 EUR debit
Expenses A/C 3149.43 EUR credit
The difference of 2.55 EUR is due to currency differences.
there is no retrospective rabte processing .
Kindly give your expertise resolve the issue of currency exchange rate difference in customer currency.
Immediate response is highly appriciated
Thanking you
With regards
Murali
Message was edited by:
Murali Krishna Lanka
Message was edited by:
Murali Krishna Lanka

HiI
f 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
The valuation of the inventories or consumption is effectively done at the exchange rate for the goods receipt, and not at the exchange rate of the invoice. When you post the good receipts, the fixed exchange rate from the purchase order is not used, but the translation of the purchase order values to local currency is always done at the posting date of the goods receipt.
If you are using the material ledger with actual costing, the system does not include the posted exchange rate differences at period-end closing in the actual prices of the materials.
Regards
Antony

Similar Messages

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.

FI Forex gain loss & Exchange Rate difference on Foreign Currency & Chart of Accounts

Dear All,
I have queries on following :
1) what is difference b/w Forex gain loss account & Exchange Rate difference on Foreign Currency account .
2) Under which Heads in Balance sheet they should come as per Indian Accounting Standards.
3) Are these accounts common for Vendor & customers or different.
4) they record FI data at Company code level or at sub-ledger level first (Vendor /Customer) .
4) Is it advised to use same Chart of Accounts to two companies in same country by using different GL's with different FSV?
Regards
MJ

Hi M J,
Please note the answers below:-
1. It is one and the same thing. When you say forex gain/loss account, it means a GL account and exchnage rate difference means, the difference in rates at which you purchased/sold and the rate at which you made paid/collected.
2. Ask Client where they want to show these GL's in Financial statement Version.
3. The configuration setting is in OB09 and SAP allows you to keep same or diff GL for both realised Exchnage rate gain/loss. It depends on how you want to see. technically it is possible.
4. The Valuation is done at company code level, but individual records are picked up at vendor/customer level. It means that the revaluation gain/loss adjustment is not given to each individual Vendor/Customer, rather it is posted to a GL - Balance Sheet adj.
5. Yes, you can use same chart of accounts and you do not need to create separate GL's at the company code level for two company codes. Same GL's can be used as the posting is made at Co. code level.
Regards,
Kavita
Note : Please raise separate thread for different questions. Your Point No. 5 is not related to the rest.

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,
Halaswamy

Hello,
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 difference posted to Group currency only during MIRO

Hi SAP Gurus,
We're activating parallel currency in ML and USD is the group currency. GR/IR clearing acct is managed in local currency only.
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
TrsDte typ 3     Translation date
Please find below scenario:
Co code currency: ZAR
PO: ZAR
Upon GR:
Posting date- 04/14/2009 exch. rate 1ZAR= 0.11099 USD
Entry: debit Expense - 4,078.19 ZAR/ 452.64 USD
          credit GR/IR acct -   4,078.19 ZAR/ 452.64 USD
Upon IR:
Posting date- 04/20/2009 exch. rate 1 ZAR= 0.11279 USD
Entry: debit GR/IR acct - 4,078.19 ZAR/ 452.64 USD
          credit Vendor acct - 4,078.19 ZAR/ 460.02 USD
automatic additional debit Expense - 0.00 ZAR/ 7.38 USD
Here are my questions:
1.) Where would I check the setting for the GL account used in the automatic line entry posted in group currency during IR? (3rd line item above)
2.) Can this be changed? Say instead of the original acct assignment, the management want to change it to FX gain/loss account
3.) How?
I have checked several notes (331910,etc) but I can't seem to find the answers to my questions.
Appreciate your help. Thanks!
Regards
Dru

Just an update to this issue- I just found out that the system is pointing to KBS when posting the
exchange rate difference in group currency upon IR, hence, PO account
assignment is adopted. I'd like to rephrase my question- is there any
way we can change SAP behaviour such that it will point to other
transaction key (e.g. KDG) other than KDM? Bottomline is we want it
charged to other GL account not the one in the PO.
Thanks so much for your assistance.
Regards,
Dru

Exchange rate difference posting in parallel currencies

Hello experts,,
We are on ECC 6.
When we enter an 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 3 different currencies.
Example to illustrate -
DC = JPY
LC = SGD
GC = USD
PO for asset.
PO value = 10000 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 10 SGD (@ 0.1 per 100 JPY) is posted to the asset. No posting in USD (though there is a balance of 5 USD).
At clearing (Transaction FB1S - GL account clearing) the exchange rate difference (in GC only, because no balance in LC) of 5 USD (@ 0.05 per 100 JPY) is posted to the Exch. rate difference GL acct.
Thanks in advance for your advice/solution.
B. Regards,
Halaswamy

Hi,
Check in t.code: OB22. the 'source currency' used for translation in . There are two options:
1 Translation taking transaction currency as a basis
2 Translation taking first local currency as a basis
Also check the notes:
335608 Trnsln of 2nd and 3rd lcl crcy fm 1st lcl/trns crcy
526623 Different treatment of local and parallel currency in ML
Regards,
Biju K

Exchange Rate difference in Balance Sheet-Revaluation in Foreign Currency

Hi
I wanted more clarification on the Exchange rate difference the system calculates when we generate a balance sheet and revalue at a fixed rate. The system does not give a breakup of the echange rate calculated. How do we arrive at the exchange rate.
And after having the exchange rate entries posted in the system. Can the system the show these values in the Balance sheet after Revaluation
Regards
Farheen

Dear Gordan
Below mentioned is the balance sheet which is Revaluated in Euro(System Currency)at a Fixed Rate of 1.42.
at the end of this report we can see that the system has calculated Exchange rate difference as Euro -66483.03 .We want a break up of that amount which is calculated by the system
Account Name     Beginning of Year(EUR)     Current Period(EUR)     Beginning of Year(Revaluated by EUR)     Current Period(Revaluated by EUR)
Asset                                          129,932.14        129,932.14                               115,984.30     115,984.30
Fixed Assets
Owned Assets
Leasehold Improvements
Computers
Office Equipment
Furniture And Fixtures
Vehicles
Medical Equipments
Tangible Assets
Capital Work-In-Progress
Capital Work-In-Progress - Assets
Investments     104,895.10     104,895.10                                 104,895.10 104,895.10
Long Term Investments
Short Term Investments     104,895.10     104,895.10     104,895.10     104,895.10
Short term Investments
Long Term Investments     104,895.10     104,895.10     104,895.10     104,895.10
121001 - Equity Investment in Subsidiary-India     104,895.10     104,895.10     104,895.10     104,895.10
Current Assets, Loans And Advances     25,037.04     25,037.04     11,089.20     11,089.20
Current Assets     25,037.04     25,037.04     11,089.20     11,089.20
Inventories
Sundry Debtors
Cash On Hand
Bank Balances with Scheduled Banks In Current Accounts     25,037.04     25,037.04     11,089.20     11,089.20
131401 - Marfin Popular Bank,Limassol,Cyprus-17911136139     9,935.51     9,935.51     9,935.51     9,935.51
131402 - Marfin Popular Bank,Limassol,Cyprus-179132258722     13,940.48     13,940.48
131403 - Marfin Popular Bank,Limassol,Cyprus-179932258780     1,161.05     1,161.05     1,153.69     1,153.69
Bank Balances with Scheduled Banks In Deposit Accounts
Loans & Advances
Loans to Subsidiary Companies
Loans to Employees
Advances Recoverable in Cash or for value to be received
Advances recoverable in cash or in kind
Prepaid Expenses
Advances recoverable prvn.for Doubtdebts
Deposits (General)
Advance Tax/Tax Deducted at Source
Pre-Launch Expenses (Deferred)
Liability     206,065.33     206,065.33     182,467.33     182,467.33
Loan Funds
Secured Loans
Term Loans From Bank
Short Term Loan from Banks
Vehicle Loans
Interest Accured But Not Due
Secured Loan from Companies
Unsecured Loans
Term Loans from Banks
Unsecured loans From Companies
Fixed Deposits
Unsecured loans From Holding Company
Unsecured loans From Subsidiaries
Deferred Tax Liability
Deferred Tax Liability
Deferred Tax Liability
Current Liabilities And Provision     206,065.33     206,065.33     182,467.33     182,467.33
Current Liabilities     182,467.33     182,467.33     182,467.33     182,467.33
Sundry Creditors     182,467.33     182,467.33     182,467.33     182,467.33
231101 - Sundry Creditors - Supplier     182,467.33     182,467.33     182,467.33     182,467.33
Advances From Customer
Overdrawn Bank Balances
Tax Deducted at Source
Tax Deducted at Source - Non Resident u/s 195
Other Taxes
Other Liabilities - Statutory
Other Liabilities - Salary Payables
Provisions     23,598.00     23,598.00
Provision for Expenses     23,598.00     23,598.00
232106 - Provision for Expenses     23,598.00     23,598.00
Income Tax
Accumulated Depreciation
Leasehold Improvements
Computers
Office Equipments
Furniture and Fixtures
Vehicles
Medical Equipments
Software & their License
Technical Knowhow
Equity     -76,133.19     -76,133.19     -66,483.03     -66,483.03
Shareholders' Funds     1,176.47     1,176.47
Share Capital     1,176.47     1,176.47
Authorized Share Capital
Equity Share Capital
Issued, Subscribed And Paid Up Share Capital     1,176.47     1,176.47
311201 - Equity Share Capital     1,176.47     1,176.47
Reserves And Surplus
Share Premium Account
Profit and Loss Account
Profit Period     -77,309.66     -77,309.66
Exchange Rate Differences               -66,483.03     -66,483.03
Edited by: Rekha Nagaraj on Dec 7, 2010 6:14 AM

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,
Santiago

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.
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!
Regards,

Exchange rate differences whne clearing documents in local currency

Hello,
While clearing customer documents in local currency , the system calculates exchange rate differences in the clearing document. Even if the amount in local currency is 0, the amount in second local currency will have a value. The same is happening also when we clear GR/IR account. In the case of customer clearing, becuse for the exachange rate differences account are maintaied default values in OKB9, the system cannot split, since there are 2 different account assignments when tolerances are also involved.
I think that, if the exchange rate differences account wont be popluated while clearing, i will be able to post clearing with tolerance amounts.
Any idea about how to make the exchange rate differences not to be caulculated for clearing in local currency?
Thank you,
S.

Hi,
Go to OBY6 and choose your company code.
For your company code, the check box No forex rate diff. when clearing in LC should have been checked in case if you dont want to calculate the exch rate diff when clearing open items in LC.
This will solve your issue.
Thanks,
Srinu

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

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

Exchange rate difference posted to document currency instead of local

Dear Gurus,
When I post in MIRO (invoice receipt) for a Service Order, there is exchange rate difference. But instead of posting the exchange difference to local currency (SGD), the system is posting the rate difference to document currency (USD). The SO is created for a asset.
Kindly assist me on how I can post the difference to the local currency.
Thank you.

I found out that the user did an invoice verification using MIRO. So the posting was debit vendor acct, credit GR and credit asset. But after this the user did a reverse (MR8M). The reversal was only done for the invoice the asset posting was not reversed by MR8M. So when the user posted the invoice again in MIRO, the system tried to debit vendor, credit GR & debit asset.
Kindly enlighten me on why this is happening & what I need to do in order to post the invoice again so that the system debit vendor acct, credit GR and credit asset.
Thank you.

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

SGD Exchange Rate Difference JE appears in Customer Aging Report

Dear Experts,
SAP Version: 8.81
Local Currency: SGD
We perform Exchange Rate Difference for a USD BP to calculate the unrealized gain/loss during month-end, JE created successfully.
Next, we go to Customer Aging Report and select this USD BP.
When i choose to view the Aging Report in Local Currency, the USD Invoice will appear in SGD + Exchange Rate Difference JE in SGD, the total balance can appear in SGD with no problem.
When i choose to view the Aging Report in BP Currency, the USD Invoice will appear in USD + Exchange Rate Difference JE in SGD, i can't see the total balance as it is appeared as xxxxx.
Above is the behaviour in 881.
Last time in SAP 2005, when i choose to view the Aging Report in BP Currency, the Exchange Rate Difference JE in SGD will not appear, therefore i can see the total balance in USD.
What is your opinion about the behavior in 881? Will you consider it as design or issue?
Thanks.
Regards,
Lay Chin

Dear all,
This problem is no longer there when upgrade to 881 Patch 08.
Regards,
Lay Chin

Exchange rate difference not getting posted to KDM account during MIGO/MIRO

Hello Gurus,
I have a purchase order with many line items. For some of the line items, the exchagne rate difference between the date of MIGO and the date of MIGO is taken to the KDM account. But for some other line items, it is not being taken the KDM. For such line items, the value of the GR/IR account in the local currency is different from MIGO to MIRO. Due to this, the GR/IR clearing is not happening automatically.
Do you have any idea, why the system is not taking the different to KDM for some line items and taking it correctly to KDM for others.
The only difference that I noticed between these 2 line items was
In case where the KDM account is determined, the GR was done for only one line item
In case where the KDM was not determined, the GR was done for more than one line item.
Thanks in advance for your replies
Thanks and Regards
Venkatesh

Hi Venkatesh,
I suspect that in your system may be the setting in OMRW is not activated. If the CCurr indicator is not activated for respective company code. Please refer to the information from note 980402 :
After you implement this note, you can use Customizing transaction OMRW to make settings for the new logic for each company code and each currency (the first local currency and two other material ledger currencies, if the material ledger is active). If the CCCurr indicator (V_169P_PK-KDHW) is set, this activates a new logic for calculating the exchange rate difference (KDM amount) in the company code currency (first local currency). As a result, the system also generates KDM lines for purchase orders with account assignment and for purchase orders with MAP materials in inventory management and in invoice verification if required. If the material ledger (ML) is active, you can set a corresponding indicator for additional ML currencies.Bear in mind that the system performs a 1:1 cancellation for the KDM line in the cancellation transactions.
If the indicator is not activated, then the new logic for calculating the exchange rate difference is not active.
I hope this helps.
Regards
Ravinagh Boni

Currency exchange rate differences in rebate agreement settlements

Similar Messages

Maybe you are looking for