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
Similar Messages
-
Balance Sheet *without* the Foreign Currency Valuation
Hi FI experts,
We have an issue and need help from the community.
Our customer wants to have a Balance Sheet without the Foreign Currency Valuation, besides the normal balance sheet with FC valuation.
Does anyone in the group have already faced an issue like this?
Is there any possibility to generate the balance sheet without FC valuation even after run F.05?
Thanks in advance.
James Francisco
SAP FI/PS Consultant.Hi,
You certainly can do this by creating a financial statement version that does not contain the revaluation balance sheet adjustment accounts and the gain/loss accounts. If you have accounts that are getting revaluated against itself and not a seperate adjustment account, then you can not. For accounts that are not open item, they will revalue against themselves so you need to check on that.
Thanks,
Jes -
Exchange rate type M not picked in FB60 foreign currency entry
Hi
My local currency is USD. I have defined exchange rate for ' USD and EUR ' for exchange type M and type EURX.
In FB60, system picks the exchange rate defined for exc. type EURX, but I want it to pick exch. type M.
Also i have set exch type M in docu type KR. Still it does not pick exc type M.
Pl advise
Thanks
kamalaI am thinking that most likely you have specified EURX as Alt. ERT (alternate exchange rate type) for exchange rate type M for the currency pair USD:EUR in IMG node 'Define Translation Ratios for Currency Translation" (T Code OBBS). Remove it and retest FB60; it should pick the M rate.
-
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
anandHi 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 -
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
IqtidarIn 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 -
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
VenkateshHi 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 -
System currency , Balance sheet revaluated difference...
I have a system using THB as local currency and USD as system currency.
Now , ive no transactions made in USD, but end of every month fin reports have to revaluated on the basis of a fixed rate.
The balance sheet (when revaluated) shows a Exchange Rate Difference of a small USD 0.15. I am not aware as to how this Excg rate diff is being captured, when all im doing is a revaluation (and my existing data has no USD transactions).
Please throw some details here. Appreciate it.
Cheers,
GautamHi Gautam,
As you are aware, every transaction in SAP is translated to the SC. Sometimes, when doing a transaction, the debit and credit columns may not match exactly due to transalation for each line. In such cases, you will find a posting in SC column even though the LC column is zero.
Your 0.15 difference may be due to such transactions. Please drill down to the account and the transactions to reconfirm.
Hope this helps.
Regards,
Hamsa -
Exchange Rate Difference in BP Account balance
Hi Experts,
I am facing a problem, what i did i raised a outgoing payment for vendor $1000 and the exchange rate is 50 Rs, after that i did AP Invoice for $1000 and the exchange rate is 51 Rs for the same vendor. After that i linked the AP Inv to that particular Outgoing Payment.
So, the balance of BP is showing -1000 rs, after that i did currency conversion in that i added the transaction automatically it is passing a JE in that it is debiting the party and crediting the forex fluctuation account and it is showing in SC and in LC it is showing INR 0.00. But the balance of BP remains -1000 only.
How to get the BP balance to Zero, as it should be zero only.Hi Murtuza,
It seems that you run conversion differences if you get a posting in only SC.
To adjust exchange rate differences you should run Exchange rate differences alternatively do the posting manually.
Please note that the suggestion you will get is for the full BP balance, by double clicking the line you can get a specified result of what transactions are being regulated and also select what should be posted and what shouldn't.
It is important that you include any exchange rate journal in the reconciliation if it belongs to those transactions, or it might be posted again.
Hope it helps,
Jesper -
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
MJHi 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. -
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
umaHi 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,
VarshaHi 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 -
Exchange Rate Differences function and when to use
The company I am asking about is based in the US, but also has offices and transactions in Canada. Does the Exchange Rate Differences function need to be run at month-end before finalizing the financials, in order to "re-value" the Canadian accounts, such as Accts Receivable, Accts Payable, Fixed Assets, etc. that may not have changed during the last month (no activity during the "current" month)? The financials are expressed in US Currency. Transactions during the month to the various Canadian accounts are "re-valued" at the time of the transaction entry, since the exchange rates are updated every day in the system. We need a clear-cut idea of when the Exchange Rate Differences function should be run.
I would say that you do need to do it. This is very important to ensure your account receivable control account (or payable) is revalued at the end of the month based on the new exchange rate.
I know some companies do not revalue the balances as it is not required. I think, revaluating the balance makes sense as it will give you a true picture of your payable or receivable at the end of the month. This is also a good way of accruing your exchange rate loss/gain.
Vincent -
Exchange rate differences for GL Account Bank clearing
Dear Experts
when I run revaluation with exchange rate differences for Gl account bank clearing, why incoming payment transaction do not include in the calculation ? because of this, the balance have the wrong value
really appreciate your help
Best regards
JeiMingHello 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 -
Incorrect Exchange Rate Differences Generated
Hi All,
My client's version is 8.8 SP0 PL21.
I run the Exchange Rate for GL Account (eg Bank Account) to revalue it at month end.
The local currency = USD.
The EUR Bank Account Balance is USD 1900.00 with EUR 1400.00 (as example). It is a Debit Balance in the GL.
The Exchange Rate Differences generated shows me USD -1900.00 and EUR -1400, Rate @ 0.70 = USD -100
It should show me USD 1900 --> EUR 1400 --> @ 0.70 --> USD 100.
Can anyone advice? Why the account balance is not display as per account balance with positive balance instead of a negative balance?
Regards
JessieHi Jitin,
The "Display Credit Balance with Negative Sign" is ticked. So, only Credit Balance will display with negative.
I have checked the Demo Company, it is also showing the same display. The Customer's positive balance is displayed as negative value in Exchange Rate Differences.
I think this is a bug. I have checked the setup of the "Display Credit Balance with Negative Sign" is the same as my cusotmer's database setup.
Seems that no one has reported this issue. I will log a Message with SAP.
Any further advice.
Regards
Jessie -
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 ChinDear all,
This problem is no longer there when upgrade to 881 Patch 08.
Regards,
Lay Chin
Maybe you are looking for
-
Ipod disabled & not recognized in windows 7 or itunes
My son disabled his ipod touch 4th gen trying to get into it, he planned to give it to his cousin so I just removed the device from his Apple acnt. However, it's still disabled & now not recognized in Windows 7 or by I-Tunes on any computer or usb we
-
Open a pdf with out print or save button
Hello, Is there any way to open pdf with out using save or print and also make other users to not to open the file. thanks
-
Iweb sites in app has disappeared
Hi, My iweb pages in the actual application have disappeared. Apparently they are still on my iDisk, but when I open the up iweb application, it's showing NOTHING, as if I never made any websites. Is there anyway to get this back? Can I get them from
-
TNS-00511 - Windows XP, 10g XE connection problem
I cannot get connected to my XE instance. Using sqlplus I can connect no problem, but there's a problem with the listener AND with connecting via http (I suspect the latter caused by the former). I'm running Windows XP SP3 (Oracle OBI, for those in t
-
Update to iOS 7.0.4 and ringtone button doesn't work anymore, why???