Foreign Currency Clearing

Hi all,
I post a vendor invoice in foreign currency and also make a payment of the same in foreign currency. But the system does not generate line item for foreign exchange gain/loss. The exchange rate it determines for open item clearing is the same used to book the invoice and not the one entered in the payment document header. Hence, no exchange difference gain/loss is determined. What could be possible reason for this ?
Thanks,
Shalin

The GL account has been set in OB09. It seems that it is not generating exc rate difference line item because it is not determining any difference in the exchange rate. It is picking the same exchange rate as was entered in the invoice, and not which is entered in the payment document header. Why is it determining the same exchange rate which was entered at the time of invoice ?
Thanks,
Shalin

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Clearing foreign currency payments against local currency bank account

Hi all
We have foreign currency invoices (eg in USD, EUR) and would like to pay these from a AUD domestic bank account. Is this common practice or does the client need to enter such invoices in their external bank specific terminal to process such payments if they have a domestic currency bank account.
How does the Electronic bank Statement (which is in AUD) clear these foreign currency invoices (EFT clearing account or suspense account). I presume we would have to post to a suspense account clearing and then do a manual post with clearing after loading the bank statement. However, the amounts do not balance to zero as i cannot clear items off as they are in different document currencies as noted below.
INVOICE
cr vendor 100USD   200AUD - cleared by payment program
dr expense 100USD   200AUD
PAYMENT PROGRAM
cr Sus clg 100USD   210AUD
dr vendor 100USD   200AUD - Cleared by payment program
dr FX g/l    0USD    10AUD
ELECT. BANK STATEMENT
dr Sus clg 205AUD
cr Cash    205AUD
What would be the standard approach for such postings from an SAP bank accounting functionality point of view.
Is there a better way of design the above payment process.

Hi,
this is a hard task.
You have to play with the GL account master data. See documentation for field "Only balances in local crcy". It is quite good described for the clearing in foreign currencies.
Also I have some doubts that there were settings in FI for foreign currencies clearing, but I have never customize it.
Hope I helped you (if so... points reward would be highly appreciated )
Regards,
Alex

Foreign Currency Posting Clearing

Hi,
I have a foreign currency clearing issue. Please look-in to my scenario below.
We are in SAP R/3 4.6C. We have two billing document (open item) one is advance payment and other is billing invoice with same amount (in foreign currency) and foreign exchange rate.
Now we have run the valuation for the both the document and reversed the same. Here when i check the BSEG after reversal, the BSEG-BDIFF (Valuation diff.) is updated for one document (Adv payment) only not for the other billing document.
the problem is that when we try to clear the documents, one more entry is getting generated for the account ( Bal. sheet adj.1) which we have maintain in OBA1 for the down payment account, this account should be posted at the time of valuation only not at the time of realization.
Please correct me if i have mistaken the concept.
Here what i could find, if at the time F.05, we have check "Bal. sheet preparation valuation" then the only the different posting will be set in BSEG-BDIFF. BUT here we have valuated both these documents by one document only and the reversal also done by one document only then why for one document only the field BSEG-BDIFF is updated.
How this extra posting happen to Bal. sheet adj.1 account will get nullify to have right status of Bal sheet.
Please let me know if more information required.
Regards,

Hi,
Valuation entries are only for the ake of financial statements.
Realizaton entries are real entries.
System doesnt post to "Bal. sheet adjustment account" at the time of realization, it posts only at valuation time.
Please check FCV again.
Rgds
Murali. N

Display Open Items in Foreign Currency (LC3) during Clearing

Hi all.
Please advice, how can we display LC3 in open item clearing transactions (like F-03)?
Our problem is that we need to clear accounts which have amounts only in LC3 (other amounts = 0) and users can't select proper document to clear.

Hi Philip,
During the clearing is not posible to display open items in foreign currency LC3.
As workaround you can do the following:
You can display with FBL*N the open items to be cleared by choosing in the layout "Amt in loc.curr. 3", and then when using the clearing transaction (F-53 for example) through additional selections insert the document numbers noted before from the FBL*N.
Hope this workaround helps.
Regards

Foreign currency valuation for GR/IR clearing account is repeatedly posting

While executing foreign currency valuation (program SAPF100) through T code F.05 the following fields are selected for the spotted rate valuation for currency type 10.
A)     Valuate G/L account open items
B)     Evaluate GR/IR account (GR/IR clearing account is selected)
C)     Valuate customer open items
After execution the valuation postings are repeated in GR/IR FC valuation Balance sheet adj account while the postings in other accounts occur only once.
GR/IR FC valuation Balance sheet adjustment account is configured in OB09 for GR/IR account for respective currency type and local currency.
What could be the reason for repeated postings in FC valuation account?

I think there is some issue with the process, normally vendor/customer reconciliation account or some liability assets related account which has impact due to foreign currency rate changes needs to be revaluated. I don't understand why you have set up foreign currency valuation for GR/IR account, these are intermediatory account which reflects in system between for example GR and IR.
I also think that you need more information on foreign currency valuation, basically it happens on a particular key date and gets reversed on key date + 1, because revaluation is only required on a key date for reporting purposes. on the next day it get reversed and actual loss or profit on foreign currency only gets booked on realization.
Hope this helps!!!
Murlidhar Khatri

Error when using automatic clearing (F.13)with foreign currency valuation.

Hello all
below is our problem, please suggest us a solution
We are experiencing a problem when running the automatic clearing in SAP. Somehow, the system seems to clear (with no reason) open items created with the revaluation of foreign currency.
Let's say that we run the valuation of open items in foreign currency for December 31, and we run the program to post the reverse entry as of January 1 of the next year. As a result of this valuation, the system calculates a loss of 10 euros. Therefore, it posts a document with a debit entry of 10 into the Loss account, and a credit of 10 in to account where the valuation was carried out. This document has a posting date of December 31. The batch program also creates the reversing entry, this time a credit entry into the Loss account, and a debit into the original account.
If now, we try to run the automatic clearing (F,13) on December 31 for those accounts, the system will create (automatically) a document on December 31, similar to the reversing entry that the valuation created, clearing at the same time, the first document that the valuation originally created.
The final result then is that the valuation makes a posting, and we end up having two reversing entries. Does it make sense?
In our scenario in the system P70, for MX10, we have a foreign currency valuation run on December 31st, which posted the document numbers:
1) 5100004579/2008, for a total of 0 euros, and 240,483.17 MXN. Credit to account 11081108 Finavigate cash receipt bank collect.CMG MXN.Debit to account 18601000 Losses f.foreign curr.valuation on financial trans
2) In the same batch, the system also books a reversing entry (doc 5100000042/2009) with posting date 01.01.2009 with exactly the same opposite entries as in the previous document.
3) After this, we run the automatic clearing with posting date 31.12.2008, and now, the system creates automatically the document 5000003236/2008, which clear the original document, 5100004579.
The final result, as you can see, it's out of balance, there is an additional document that we need to reverse.
Thanks in advance
sujatha

To my knowledge you get do two things:
1. In F.13 transaction don't include both the GL accounts where the Dr. and Cr. posting from the valuation run have taken place. With this the system won't find the matching entry.
2. If you want to use all the GL accounts in F.13, then check the clearing procedure configuration and make suitable changes.
With the info provided, this is the only thing I can suggest.
Regards,
~Vishal.

F-32 - clearing customer items in foreign currency

Hello gurus,
please, where in SPRO can I set the possibity of clearing customer items in foreign currency in F-32 ?
Presently all items are converted to local currency and it's not possible to switch into foreign currency.
Vendor open items we can clear in foreign currency in F-44, but customer open items not.
Thank you,
Ondrej

What error you are getting in F-32 while clearing the customer in foreign currency?
Please check whether in FS00 for that customer reconciliation account, you have selected the check box "Balance in local currency". If yes, then that will not allow you to clear in foreign currency.
Regards,
SDNer

Clearing of GL open items F-03 for foreign currency trans

Hi there,
I am trying to clear a GL open item managed Bank clearing a/c which has a payment document with foreign currency amount (doc cur) and LC1 and LC2.
The doc is posted in Aug 08. When I try to clear it in Sept 08 i see that LC1 and LC2 are showing diff amount from the posted amount. Since i am using this GL a/c as bank clearing will there be double exchange diff calculated....1) during payment of invoice and 2) during clearing from this Bank clearing a/c to Bank a/c.
I guess the difference is because of two diff clearing date but is this standard or is there any settings to control this. Looked through but could not find anything.
Any of you have any comments on this, please let me know.
Thank you very much
RG

when you clear the open item, the system will pick up the exchange rate mentioned in the tables (Tcode OB08) and the difference in the exchange rate entered in the invoice and the exchange from the tables at the time of payment will be proposed.
If you enter the payment document with the same exchange rate you had given at the time of invoicing, there will not be any difference.
Check you settings in OB08.
Regards

Foreign Currency Valuation - GL at the time of clearing of open items

Hi experts,
We valuate the open items (Balance sheet items) in Company Code Currency without checking the reversal option.
At the time of clearing of these open items, the GL used for reversal of the valuation difference is been different.
GL mapped in OBA1:
Exch.rate diff realized
Loss/Gain: 716000
Valuation: Loss/Gain - 716001
Bal.Adj 1: 101699
Translation:
Loss/Gain: 716000
Bal.sheet adj -Loss/Gain: 716001
At the time of clearing of open items:
The entry which is getting passed for the reversal of the valuation difference is some time posted to GL: 101699 and sometime to GL 716000. The off-setting GL been Clearing GL(which is been valuated).
Could someone kindly through some light as to why the system behaving in such a way. We expect the GL at the time of reversal to be 101699.
Thanks in advance.

Hi Pradeep,
The principle of foreign currency revaluation works as follows for the open items like AR, AP and Bank Balances:
At the period end the system revaluates the open items (or balances, as the case may be) with the period end exchange rate and thus posts the difference between the original exchange rate (at the time the open item was created) and the period end rate. This could be loss or gain due to revaluation. One side of the entry is P&L (7...account) and the other side is the balance sheet (the balance sheet account typically comes from AR, AP or Bank/Cash range).
This loss or gain is not realized since at the period end the open item is still out there. When you clear the open item, the loss or gain due to the latest exchange rate is realized immediately and is posted to realized loss or gain, with an offset to the original balance sheet account.
I hope the above helps.
Sharabh

Bank Reconciliaiton and Clearing Process of Banks in Foreign Currency

Dear all
Can you please help me out in this process? My client has a bank account managed in USD and his Local Currency is in EURO.
Payments are made to a supplier in USD at an established exchange rate. The bank reconciliation (manual) is then processed on a later date with a different exchange rate - the rate in the system.
The client is then clearing the Vendor Payments with the Bank reconciliation posting. This in turn posts a clearing document as well as a realised gain/loss on exchange. The clearing of the Payment with the invoice also takes place as a further process with a further gain/loss on exchange created.
The client is saying that in the case when clearing Payments with the Bank reconciliation for foreign currency the posting should not create a gain / loss on exchange.
Can you please help? Is the process correct? They can update the foreign exchange rate in the table when posting the bank reconciliation to be more or less equal to average exchange rate of payments but this is not practical.
Is it possible to someway define the exchange rates during manual bank reconciliation or avoid the creation of an exchange rate division?
Many thanks
PRG

Hi PRG,
When the Invoice has been made at a different rate and payments are being processed at a rate different from the Invoice, system is bound to create the additional line items for gain/loss on forex.
One option you can look out for is in the OBY6-Company code global settings-Select the check box Indicator: No ex.rate difference when clearing in local crcy.
Thanks
Aravind

How to clear local currency balance in foreign currency account

hi,
i have a bank account in EUR but local currency is USD.
in the account balance, it has 0 in EUR but has balance in USD. i need to clear the amount in USD.
i tried f-02 to post EUR 0 and balance which in USD i enter in amount in local currency field but when simulate, the system converts the USD amount for EUR and EUR with an amount.
may i know how to clear local currency balance for a foreign currency bank account which has ZERO balance.
thanks

Dear ,
can u give me the details
what is the invoice transaction (Entry
how u clear that transaction (entry)
what is the difference values.
Regards
radha

Invoice in local currency Clearing in Foreign currency

Hi,
Is it possible to clear the invoice in foreign currency which is originally posted in Local currency.
regards
Stefen

Yes, but if the Local currency amounts do not match,then you will have to either:-
a) Write off the differance as a "Discount"
b) Manually add another posting line, to post the difference to the Exchange difference accounts.
a) is easier, but b) is correct from an accounting view.
Regards
D.

How to clear invoices posted in foreign currency in APP VERY URGENT

Hi Sap Gurus,
I have posted 2 invoices , one is in inr (local curcy), another one in usd and i have run the app using the t.code f110
local currcy incoive was cleared but usd curcy invoice went to exception list
Why this happened?
how can i clear foreign cuurcy invoices in app ?
How can see the exception list ?
can i edit r delete the payment proposal ?
what is the use of additional log in f110 screen?
thanks in advance for ur answer
points wil b assigned
Regards,
Rajesh

Hi Rajesh,
Pls. check following in your payment program configuration. Configuration of Payment Program can be access through APP Tcode F110. Go to Environment --> Maintain Configuraiton.
Check Following:
1) Payment Method for Country : Whether Foreign currency (USD) is added in the list of permitted currency for the payment method specified in the APP Run. If not, add USD as a permitted currency for the payment method.
2) Payment Method for Company Code : Select Foreign Currency / Foreign Payment indicator for the company code/ payment method combination. Select all three indicator.
3) Check the house bank configuration : Whether house bank determined for the company code/ payment method combination in ranking order is set up for any specific currency payments. Keep teh currency field blank if you want to pay in multiple currency from the house bank determined in ranking order.
Hope this helps. Pls reward points if this is useful.
With Regards,
Chirag

Clearing Foreign Currency invoice with Local currency

Hi,
We do have a requirement for clearing of Vendor Invoices ( Foreign Currency) with Payment of Local Currency . System not posting any Forex fluxuations .
Clint required to see the Foreign Exchange gain loss automatic postings ,
Eg:    Vendor Invoice   200 $    (200 $ = 800 INR) Exchange Rate : 40
          Payment            1000 INR                       Exchange Rate : 50
Expected Result :
Vendor Dr                     : 800
Bank    Cr                      : 1000
Forex gain / loss Dr       :   200
Regards,
sujana

Hi,
I have deactivated , the check box of No forex gain loss for local currency in Global parameters.
But system behavious is following manner.
1. While making payment (F-53) , system fetching the exchange rate from exchange rate table ,. NO OPTION for User input.
But customer requirement is exchange rate will be according to user input.
2. While clearing system , the difference of forex gain , system expecting differential posting besides to forex gain loss amount.
But customer requirement is to post accounting entry would be
              Vendor debit
             Bank Credit
           Forex gain / loss a/c Dr.
Please suggest , if any body has got an idea ..,
Regards,
Sujana

How to clear cumulative local currency balance of foreign currency Bank a/c

Hi,
We are facing a problem with the foreign currency Bank account from which we make payment in foreign currency but when we see the balance in local currency there is a difference.
e.g Local Currency RMB Bank Account Currency USD
Current Balance in Bank Account 1000 USD RMB rate 0.275 Balance in Local currency 275
We make a payment of 1000 USD at that time rate is 0.270 Payment in local currency i.e. 270
When we display of GL Balance of Bank account it is showing 0 balance but balance in RMB still showing 5 KWD which is not correct as we dont have any balance in USD. How to avoid this situation.
Regards,
Nirmala S.

You have to configure realized and unrealized exchange rate gain/loss accounts in transaction code OB09 for all your foreign currency balance sheet accounts. Once this configuration is done, you have to perform foreign currency valuation (F.05 or FAGL_FC_VAL) to clear the balance in local currency and post it to unrealized exch. rate gain/loss accounts configured in OB09 above.

Foreign Currency Clearing

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