Exchange Fluctuation in FA

Dear Friends,
I have q query in FA module. I want to capitalize the exchange gain or loss relating to an asset and add it to cost of the asset.
In AP module, when payment is payment the difference between invoice rate & payment rate goes to exchange rate a/c in GL. But i want to route it thro' FA module so that depreciation is also calculated on that amount.
Expecting an early reply.
Regards.
Krish

Hi,
As on one account can be defined as Exchange rate gain/loss account to book the exchange fluctuations, you can try the option of manually transfering the relevant balance from the G\L which has been defined as default to the other G\L Account to book for the other branch transactions.
Check if this workaround helps.
Kind Regards,
Jitin
SAP Business One Forum Team

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Exchange Fluctuation Entry for Segment account in SAP

Dear All,
I have created segment account for two branch in SAP
for each branch we are maintain foreign exchange gain and loss account seperatly.In SAP, only two account can be mapped in GL determination for only one branch.
How to account exchange
fluctutaion entry for both branch.
thanks
Regards.
Sridharan.R

Hi,
As on one account can be defined as Exchange rate gain/loss account to book the exchange fluctuations, you can try the option of manually transfering the relevant balance from the G\L which has been defined as default to the other G\L Account to book for the other branch transactions.
Check if this workaround helps.
Kind Regards,
Jitin
SAP Business One Forum Team

Foreign Exchange fluctuation rate is not showing in case of partial payment

Hi,
In case of foreign exchange collection from Customer through F-28 in partial payment "Exchange Rate Gain" or "Exchange Rate Loss" is not appearing in GL balance simulation or Customer balance report. Only in case of full payment from Customer then "Exchange Rate Gain" or "Exchange Rate Loss" is appearing in GL balance simulation. What is the reason ?
Regards,
Anindita

Hi
Even in the scenario described by you,
You can use both residual and partial payments
here is what would happen for partial /residual payment after you post the payment.
Partial payment
open items
Debit USD 500
Credit USD 200
No cleared items
Residual Payment
open items
Debit USD 300
cleared items
Debit USD 500
Credit USD 200
Credit USD 300
Regards
Sach!n

Default Cost center in Foreign Exchange fluctuation account

Hi
I am doing FB60 of 100$ (1$ = Rs.45). Cost center used at the time of FB60 is 1100 (i,e, engineering division) Now i am paying in full and clearing the same invoice. Exchange rate at the time of Payment is 1$ = Rs.47.
Now the SAP is picking the cost center given in FB60 i.e. 1100 instead of cost center (i.e. 7500 - finance) defined by default in the cost element. Let me know why the system is picking cost center from FB60.

HI,
Is this issue solved? If not try this thing. Remove the cost center assignment in the cost element, as you are assigning the profit center in OKB9. For a cost element if it is a revenue item profit center should be assigned, if it is a cost item cost center should be assigned.
In your case, cost center is assigned in cost element and also profit center is assigned in OKB9.
For one cost element we can not assign both cost center and profit center.
Hope this should help you
Thanks and Regards
Om prakash RA
Edited by: Om Prakash Arjuna on Nov 27, 2009 3:57 PM

Exchange rate difference between MIRO and GR/IR

Hi,
Exchange rate difference between MIRO and GR/IR we need to written off as a expense for imported w/off expense and in case of assets we need to post exchange rate difference to exchange fluctuation account. Currently exchange rate difference is accounting under capital work in progress(Asset)instead of exchange fluctuation.
Thanks in Advance
Regards
Venkata Suresh

Hi,
At MIRO stage, after entering PO number system will automatically populate the GRN value for selection. Here if you found that invoice value, which you have received from the vendor, is more than the system proposed amount, then you can adjust that diff amount in the GL account tab, which is next to PO reference tab in MIRO.
There enter the exch loss GL account and enter the diff amount.
Thanks,
Srinu.

Exchange rate calculation in case of partial payment.

Dear All,
I have a case in which I need to calculate Exchange rate fluctuation on partial payment.
Example
Exchange Rate
01.04.2011   1USD = 40 INR
10.04.2011   1USD = 45 INR
01.05.2011   1USD = 50 INR
31.05.2011 1USD = 55 INR
Invoice Date = 01.04.2011 (1USD = 40 INR)
Purchase Ac Dr 100 USD
   To Vendor               100 USD
Partial Payment on 10.04.2011 of 20 USD
(10.04.2011   1USD = 45 INR )
Vendor Ac Dr 20 USD
    To Bank Cr 20 USD
Partial Payment on 01.05.2011 of 60 USD
(10.04.2011   1USD = 50 INR )
Vendor Ac Dr 60 USD
    To Bank Cr 60 USD
On 31.05.2011 (Month end Revaluation FAGL_FG_VAL)
(31.05.2011   1USD = 55 INR )
If we do the valuation you will find that system create Fluctuation on the basis of Rate maintain on 31.05.2011 .i.e 1 USD = 55 INR.
Ideally system should generate fluctuation at the time of partial payment only so in that case fluctuation will be less. And this is as per accounting standard also.
( I know partial payment is open item and system will not calculate exchange fluctuation in that case. But then this will be wrong practice.)
(If I go for residual payment in that case system will clear full invoice amount then and there and create exchange rate fluctuation of full amount which is also wrong).
Kindly Suggest
Bittu

Thanks Atif.
It mean that we have to show excess loss in our report, which is not actual.
SAP might be having some solution on this Issue as we cant show wrong B/S.
This is not a correct practice , hope you agree with me.
bittu

Exchange Rate difference for freight clearing

Hi SAP Gurus,
I am facing a problem regarding exchange rate fluctuation. We have an import PO with USD (300 USD for Goods + 24 USD as freight).
The Problem has come at the time of IR
At the time of GR exchange rate was Rs.46.75, but at the time of IR the exchange rate is Rs.50.30
Incase of Goods (GR/IR Material) system attempt to post the difference amount (for foreign exchange fluctuation) to the account defined under Transaction u201CKDMu201D
But incase of freight (Freight Clearing) system attempt to post the difference amount (for foreign exchange fluctuation) to the account defined under Transaction u201CPRDu201D
I want to post the differences (for Goods & Freight) to the account defined under Transaction u201CKDMu201D
Kindly help me.
With Thanks & Regards,
___SAJIB SAHA___

Exchange rate differences for open items (KDM)
Exchange rate differences for open items occur when an invoice and a goods receipt for a purchase order are posted at different exchange rates and the material cannot be debited or credited due to standard price control or stock shortage.
Price differences (PRD)
Price differences occur for materials subject to standard price control for all movements and invoices valuated at a price other than the standard price. Examples: goods receipts for purchase orders when the purchase order price differs from the standard price; goods issues when an amount is entered manually; invoices when the price invoiced differs from both the purchase order price and standard price.
Price differences can also occur for invoices for materials with a moving average price when there is insufficient stock coverage for the quantity invoiced.
Depending on the settings for the posting logic for the processing key PRD, you can work with or without account grouping. If you work with account grouping, the following are used in the standard system:
None for goods and invoice receipts for purchase orders
PRF for goods receipts for production orders and
order settlement
PRA for goods issues and other movements
PRU for transfer postings (price differences for external amounts)

Forex Fluctuation entries not to be passed in BRS

Hi
I have made payment to Vendor on 12th December $1000 (1$ @ Rs. 45.45) = Rs. 4545
At this time entry passed was:
Vendor A/c... Dr Rs. 4545
   To Outgoing Bank A/c Rs. 4545
Now on 15th December i am running BRS (FF67).
Rate mentioned in OB08 on 15th December was 1$ = Rs.45.00
So at the time of BRS, exchange fluctuation entry was passed on 15th December
Outgoing Bank A/c... Dr Rs.4545
   To Main Bank A.c Rs.4500
   To Realised Gain A/c Rs. 45
I have put tick in "Only balance in local currency" in outgoing bank account so that the exchange difference entry is not passed. But inspite of the same exchange fluctuation entry is passed.
Let me know how to avoid forex fluctuation entry.
Edited by: Deepak Agrawal on Dec 21, 2009 4:34 PM

Hi
If the two documents you are trying to post are in Foreign currency and if Balances in Local Currency is marked in the GL Master, system would post the exchange rate difference to Forex Gain/Loss A/c. However, a better way to avoid this is to post the outgoing payment at Bank specified rate and when you do Bank Reco through FF67, you would do in INR. The system should than not generate the difference entry as the amount in Outgoing Bank and Main Bank GL would be same.
Regards
Sanil Bhandari

EXCHANGE RATE ISSUE WHILE EBS

Hi,
- Company Code Currency and GL currency is INR
- for EBS (auto BRS) we created 3 GL account for each bank a/c (Main account, Incoming A/c and Outgoing A/c). all maintained in INR.
- posted an entry in above outfoing GL account - 1000 USD @ 49.60.
while clearing this line item at the time of EBS, system through an error : Ex.rate diff.accts are incomplete for account 0000233062 currency.
my requirement is exchange fluctuation should not be calculate at the time auto BRS. Please let us know where went wrong.
Thx & Rgrds
Venkat

Hi,
E.g. following entry has been passed on 20.12.2011(USD to INR 45)
Dr Vendor 1000 USD(1000*45=45000) 45000 INR
Cr Bank outgoing a/c 1000 USD--45000 INR
Month end you are doing BRS(31.12.2011)(USD to INR 46)
Dr Bank outgoing a/c 1000 USD-----46000 INR
Cr Main Bank a/c 1000 USD-----46000 INR
Here 1000 INR difference is coming which should be posted to Fx difference accounts.
So, please check the first entry posting date and second entry posting date, if both are same no Fx difference
otherwise Fx difference will arise.
Rgds
Murali. N

Exchange rate flunctuations

Dear all,
Can anyone tell how the exchange rate fluctuations are taken care in SAP - FICO?
How the local currency is converted into foreign currency when goods are imported or exported?
Thanks in advance,
A.Anandarajan.

Hi,
1) Define statndard quotation for exchange rates.
2) Check exchange rate type- OB07
3) Define Translatiion ratios for currency translation - OBBS
4) Enter exchange rate - OB08
5) Maintain Exchange rate spreads - OBD6
6) Define Valuation methods (closing) - OB59
7) Foreign currency Valuation (closing) - OBA1
On the basis of above steps local currency is converted to foreign currency.
exchange rate difference is posted to FI thru automatic posting config done in FBKP for loss or gain due to foreign exchange fluctuation.
Hope this helps.
Please assign points as a way to say thanks.
Regards,

Order to cash journal entry flow

Dear Members,
Please let me know the FICO entries for order to cash cycle including all the taxes applicable [exhaustive scenario]
Thanks
Sheli

Hi Sheli,
As Ajay has already stated there are no entries during sales order creation and Delivery creation, accounting entries starts from PGI which are as follows.
Goods Delivery to Customer - PGI (VL01N)
(Outbound Delivery)
                      Dr. Cost of Goods Sold A/c
                     Cr. Inventory A/c
Raising of Sales Invoices (VF01)
       Dr. Customer A/c ( Accounts Receivable)
       Cr. Sales A/c
       Cr. CENVAT Output Clearing A/c
       Cr. VAT Payable A/c
       Cr. Pro Fright O/w Claim A/c                  If any. Collecting from Customer
       Cr. Pro Export Exp A/c                           If any. Not Collecting from Customer.
       Dr. Freight Outward-XP A/c                   Freight Outward - XP A/c is Expense A/c
       Cr. Pro Export Exp A/c                          If any. Not Collecting from Customer.
       Dr. Commissn On XP Sales A/c           Commissn On XP Sales A/c is Expense A/c
Raising of Excise Invoices (J1IIN)
      Dr. CENVAT Output Clearing A/c
      Cr. Excise BED Payable A/c
      Cr. Excise ECS Payable A/c
      Cr. Excise SHE Payable A/c
Accounting Entry in case of Sale of Scrap (VF01)
       Dr. Customer A/c ( Accounts Receivable)
      Cr. Income From Scrap Sale A/c
      Cr. CENVAT Output Clearing A/c
      Cr. VAT Payable A/c
      Cr. TCS - Scrap Sales
Raising of Excise Invoices for Scrap (J1IIN)
       Dr. CENVAT Output Clearing A/c
      Cr. Excise BED Payable A/c
      Cr. Excise ECS Payable A/c
      Cr. Excise SHE Payable A/c
Receipt of Amount from Customer( F-28)
       Dr. Bank Account A/c
      Cr. Customer A/c ( Accounts Receivable)
Receipt of Amount from Foreign Customer (F-28)
       Dr. Bank Account A/c
      Cr. Customer A/c ( Accounts Receivable)
      Dr/Cr Exchange Fluctuation A/c
Hope this will help you.
Regards
Eugene

How to pay import payment

friends,
after importing, we have to pay the vendor invoice, but we have exchange fluctuation also, how to clear the vendor invoice, including exchange fluctuations.
regards,

Hi,
You have to maintain different exchange rates for different dates in t-code OB08. System will automatically pock up this rates while posting transactions.
Apart from it, you have to maintain automatic account assigmment in T-code FBKP for Exchange differences. So system will automatically post Gain/Loss on foreign transaction to these accounts at the time of payment.
You can clear your invoice through F110(Automatic payment) or F-53 (manual payment).
Hope this clarifies your query.
LEt me know if further explanation is required.

J1INCHLN posting Error: a maximum of 999 line items are allowed

The local currency of the company code is INR and the the 2. local currency is EUR (Group currency)
When we pay withholding tax (T_Code=J1INCHLN) for a particular months it clears all open items for that month.
After simulation of TDS a/c with various posting dates , it calculates exchange fluctuation gain/loss for group currencies. As a result exchange rate gain and loss accounts are automatically posted compared with each open item posting dates and the posting dates for this transaction.
If there are average 10 business Areas and 25 posting dates with 4 TDS G/L accounts
it has to be crossed more than 999 line items.
Is there a slolution for this problem?
How can we avaoid this problem?
Your replies are mostly appreciated
Thanks

Hi,
the field for cheque no. assignment is not available in payment screen J1INCHLN, we need to assign the cheque no with T_Code:FCH5 after the document posted. Once we assign one cheque number to a particular document No1.,that cheque no will not be available to assign to another document no2 as it has been already assigned in doc1.
Looking forward to your solution proposals?
How indian companies solve this problem?
BR Tarik

Meeting Indian Stautory requirements and US GAAP requirements in FA

Has any one met the Indian Statutory requirements pertaining to:
i)Additions of Exchange Fluctuation Cost
ii)Capital Grants for recording in Indian FA Book but not copying into US GAAP FA Book
Can you flag certain Cost additons from getting into FA TAx Books.
Thanks,
Harmander
P.S. please reply at [email protected]
& [email protected]

Hi Friends,
No replies at all , any pointers.
Regards
Ashutosh

Revaluation of foreign currency

Revaluation of foreign currency - System is debiting foreign currency losses in one business area ( Corporate i.e. 9000) instead of respective business area whereas gain on exchange fluctuation is credited in the respective business area.
Thanks & Regards
Raheem

Hi,
Check have you made any default business area for given GL account in your company code.
Check OKB9 settings.
Regards,
Shayam
Edited by: Shayam_210 on Aug 10, 2011 8:05 AM

Exchange Fluctuation in FA

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