Exchange Difference
Hi All,
How do we track the Exchange differences / Forex Gain / Loss.
In SAP we enter the Exchange rate in Administration Module, at the time of Transaction, if we enter the different rate then SAP is taking the Exchange rate from Administration Module.
For Example: In Administration we enter the USD rate @ 42/- and in the A/P Invoice we enter 42.50, when we view the JE, there it is taking 42 and 42.50.
Please help me out to resolve.
Regards
Shanker
Hi Shanker,
please have a look at this [EoP wiki |https://wiki.sdn.sap.com/wiki/pages/viewpage.action?pageId=60654139]page, it'll help you understand how B1 calculates the rates. There is also an [EES|http://service.sap.com/~sapidb/011000358700000326672008E.zip] in the archives where a case like yours is described (SC=FC-why dont they match).
All the best,
Kerstin
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To get this difference in foreing currency, you´ll need to get document date of purchase order, get exchange rate at OB08 and find both prices in foreign currency; after that get same way the variance.
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When clearing an open AP item with a payment, the realised exchange rate difference is posted to the P+L against the relevant cost centre (From the purchase order). However, the assigment to the internal order (also contained in the Purchase order) is lost.
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Thanks!We once had a similar requirement - the only difference is that we wanted the exch. rate diff. to go to the WBS element (which is on the PO). All we did was to add WBS element as a document splitting characteristic in the following node in SPRO.
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Dear all,
There's a purchase order with foreign currency, for the currency rate floated every month, if we do MIRO in the next month after we do GR, there's foreign currency exchange difference happened,
the problem is if the mat'l code with stand price control, in OBYC, I set the transaction KDM with account determination:exchange difference, then I do MIRO, it's ok, the currency exchange diff goes into the right account(exchange difference),
but if the mat'l code with price control V, when do MIRO, the currency exchange difference goes into the inventory account automatically, seems not determined by the setting of OBYC KDM,
so what can I do,?
Appreciate your kind reply in advance.
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Try the SAP Note No:980402.For me it worked only for material price with Moving Average price.
Still We are analysing to get for Accout assignment purchase order and service purchase order.
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Dear Experts,
I need your advise on the following issue.
At our company we revaluate both bank accounts and open items in foreign currencies at each month end. At the beginning of the next month, unreal.exchange differences for open items are reversed but differences for bank accounts are not. Accordingly, we have permanent balance in P&L account for unrealized exch. rate gains and loses.
I would like to know if there any unirom approach to dealing with this issue. Do you have to reverse gains/loses for bank accounts each month or leave it as it is and make one journal entry to reverse accumulated gains/losses if/when particular bank account is closed, e.g. foreign currency balance is 0?
Thank You,Hi Srinivas
Thank you for input.
Yes, we are not making any reversal for bank accounts, but are reversing gains/loses for open items such as accounts payable/recievable. Is this the case with other SAP users?
The issues is that P&L account has accumulated unrealized difference due to non reversal for bank accounts. Do we need to post accumulated balance to realized gain/loss when bank account is closed (zero balance in foregn currency)?
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We want not to inventorise the exchange difference while invoice verification (MIRO). We are in Actual costing scenario. when we do actual costing the exch.diff booked in MIRO (Invoice verification) is transferred to Inventory a/c. One way to avoide is to select "Exch.rate fixed" check box in PO. But the inventory is valued only with this rate. Any change in Exch.rate will not be considered for Inventorisation at the time of MIGO.
What we want is ,the inventory should be valued at the Exch.rate on inwarding (MIGO) and further variance should not be inventorised(Actual costing scenario).
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I thought this will not work here. Can you pls elaborate further.
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In company the Inventory is managed in different currencies as per GRN (Procurement) exchange rate. All the subsequent posting should be posted with GRN rate. But this is not happening at this moment. All the subsequent transactions to GRN are posted on the posting date exchange rate.
How to do subsequent postings to GRN at the original GRN rate. If there is any exchange difference loaded at the time of Invoicing then it should be taken care while doing subsequent transactions.
Kindly resolve.Not quite sure I understand the question but . . .
On the Header level Delivery/Invoice tab you can fix the exchange rate. All GRs/Invoices then get posted with reference to that exchange rate. Is that what you want ? -
How to assign default cost center to exchange differences ?
Hi all,
Default costcentre for currency exchange differences missing in the company code.
How to assign ?
Please answer at the earliest.
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narasimha raoHi,
Have you able to assign default Cost Center in case of Exchange differences? If yes, how is that possible.
We also want to do the same activity in case of Foreign Exchange Revaluation.
Please share, points will be assigned.
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Shridhar -
Exchange Difference posting through MM
Dear Experts,
We Procure Assets through Material Managment . we have created interim asset class in FI and attach Asset number in PO while creating PO.
Now scenario is that we procured/imported Asset through PO and created PO in Foregin Curreny on 01-06-2011. we did GRN of the Asset on 16-08-2011 and MIRO on 24/08/2011. FOregin Exchange on all these dates were as follow
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16-08-2011 116 PKR
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now due to difference in exchange rate at the time of MIGO and MIRO system automatically charge Exchange rate difference to Asset at the time of MIRO. While our financial experts argue that according to IAS21 exchange rate difference should be expensed out
we have assigned exchange rate difference(expense) already in OBYC
Requirement
isi t SAP standard functionality to charge exchange diiference to Asset at the time of MIRO.
and can we expense out exchange rate difference at the time of MIRO and where configurational changes should be made
please also note that as payment invoice is cleared exchange rate difference is booked in exchange difference a/c which is accurate
BR
sajidaHello Sajida, Did you resolve this?
There are a few things that you could do:
1. Tweak the way that Exchange rates occur between MIGO and MIRO, that you can do it at SPRO > Materials Management > Logistics Invoice Verification > Incoming Invoice > Configure How Exchange Rate Differences Are Treated
In there you have the following options:
If you do not select a value: Exchange rate differences between goods receipt and invoice receipt
The system calculates the exchange rate differences from the difference between the exchange rate at the time of the goods receipt and the exchange rate at the time of the invoice receipt.
Choose the value X: Exchange rate differences between invoice receipt and assumed exchange rate
The system calculates the exchange rate differences from the difference between the exchange rate at the time of the invoice receipt and an assumed exchange rate. The assumed exchange rate can, for example, be valid for a whole year or a part of a year.
Choose the value N: No exchange rate differences, only price differences
No exchange rate differences will be calculated. Instead, differences from exchange rate variations will be considered as price differences and posted to a price difference account.
Since you are working with assets, all price differences move to the asset, therefore it may not help you, but nonetheless you should try it out.
2. Modify the Account Assignment Category "A" (Asset) so that the Goods receipt becomes nonvaluated, with this, there won't be any change between MIGO and MIRO since there won't be any financial document on Goods Receipt. This solution is implemented is most of our clients.
3. Creating or modifying the purchase order (before Goods Receipt) you can check the Indicator Exch.Rate Fixed in the Delivery/invoice tab at PO. with this indicator on, all documents posted to this purchase order will have the exchange rate shown in the same tab at the Purchase Order (ME22N), you can change this exchange rate also with the number that you need for MIGO and MIRO, no price differences will occur between MIGO and MIRO, but price differences for payment will occur has a standard.
Best regards,
Arturo Flórez
MQA Colombia -
Exchange difference - bank clearing
Hi All
while doing bank clearing in F-03.
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it is asking the currency amount to be cleared
please suggest me where to make the changesHi
Select the CAD currency to clear the same as base currency is CAD and I assume that both the line items of CAD + and - are of same amount . If it is so it will clear the documnet however if there is difference in USD it will post the difference to foreign exchange difference account.
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Rajiv -
How do we account for when the exchange rate changes between PO and invoice?
I have posted an A/P invoice on to our system for $1,000,000 on 31 October 2007 when $1 = £2.00
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2 questions - How do I match the payment against the invoice?
Granted the $ is zero, but the Business Partner shows a £ balance of (($1,000,000 / 2) ($1,000,000 / 2.10)) = £23,809 difference in exchange rates. So how do I account for the exchange rate difference to clear the account?
Many thanksThis is manual work. you could use exchange rate differences as a standard one. It is available in financial module. you execute on the date where you post the AP invoice. There is GL account for realized exchange rate gain and loss that must be set in the GL account determination.
The transaction journal will be resulted in after perform the exchange rate differences. I have performed this work and the result is okay. usually the company do this yearly or monthly if the exchange rate of currency is not highly fluctuations.
Rgds, -
Foreign Exchange difference on payment to import vendor
Hi
Iam explaining my query based on an example:
For ex. an amount of USD 1000 outstanding in vendor account accounted at USD 1 = INR 40 (INR 40,000)
I have paid him USD 500 after two months (on which date the USD 1 rate is INR 50) - i.e., INR 25,000
However, while selecting the open items in T-Code F-53 if I select partial payment the entry will be
Bank a/c Cr. USD 500 INR 25000 @ 50
Vendor a/c Dr. USD 500 INR 25000 @ 50
However, no exchange rate difference is generated at this point of time.
However, if I selected the open items in T-Code F-53 by selecting residual payment the entry will be
Bank a/c Cr. USD 500 INR 25000 @50
Vendor a/c Dr. USD 1000 INR 40000 @40
Vendor a/c Cr. USD 500 INR 25000 @50
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My Doubt is, when Iam making partial payment, why is entire exchange loss on USD 1000 getting recognised, it should recognise only on USD 500.
Further, during partial payment, why doesnt exchange loss get recognised?
Regards
Abhishek KumarResolved. T-Code IDPH1
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Exchange difference error during Bank Reconcilation
We are maintaining three bank accounts for every house bank - Main Bank account, Incoming Account and Outgoing account. All receipts are first posted to Bank's Incoming Account. All payments made are initially posted to Bank's Outgoing Account. At the end of a period, we do reconciliation of bank accounts and all the cheques deposited to bank and cleared are transferred from incoming account to Bank's main account. Similarly all the cheques issued and cleared are transferred from outgoing account to bank's main account. Thus bank's main account's balance always matched with the bank statement and cheques outstanding are kept in incoming and outgoing accounts. We do these transfers by using a functionality ZBRS. For this we create an excel format and upload the same through ZBRS. Thenafter we run transaction SM35 to post all the entries. The problem we are facing is that some time, a foreign currency transaction is not transferred to main bank account and the error message given is ""Exchange Rate Difference accs are incomplete for account *** (bank's incoming account no.) currency *** . However such message does not come for all foreign currency transactions but only for few. Kindly suggest the reason of error and measures to remove the same."
Hi Satish,
can you check in Exchange rate difference acoounts for open items, if you maintained any currency in that screen then system will through the error if you transact with another curency.
I hope it helpfull to you
Regards,
Nagesh -
Foreign Exchange difference posted to price difference account at MIGO
Hi,
We have a problem regarding posting foreign exchange rate difference at the time of GR.
We are costing materials at the beginning of year, and purchases made during the year as per PIR will result in legitimate price difference which is posted to price difference account. Thatu2019s working alright.
Now, due to new business requirement, we maintained PIR in MXN (Mexican peso), & standard cost is converted in local currency USD as per exch. rate maintained in OB08.
Now, when we do GR, the difference of foreign exchange at the time of Std. cost & GR date is posted to Price difference account instead of foreign exchange account. For eg. Std .cost of material A is 1000 MXN, and GR cost of material X is also 1000 MXN, however corresponding USD is different because of different foreign exchange rate.
Will appreciate if someone can suggest on how can we post it to exch.rate diff.account instead of price diff. acct. ?
Thanks,
NiravHi,
Thanks for your replies.
We have already maitained exch.rate GL OBYC-KDM, which is successfully posted with the exch.rate diff.arising out of GR & IV at the time of IV.
I'm talking about price difference in Std. cost & GR value because of exch.rate diff.
For example, Std cost for Material A is 1000 MXN converted to $100 with exch.rate of 10. Now, GR happens with 1000 MXN converted to $200 with prevailing exch.rate of 5. Please note that std. cost and GR is the same price 1000 MXN, but USD amount is changed resulting $100 gets posted to PRICE DIFFERENCE Account, whereas we want to post it to FOREIGN Exch. diff.A/c becuase it's arising out of exch,rate difference.
Please let me know if it makes sense.
Thanks,
Nirav
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