Forex differences

Hi frnds..
After defining exchange rate realised and unrealised accounts and after going through ob09 ...when i post an invoice in USD of 1000USD..(which is my controlling area currency and INR is my company code currency), ..this posting is done when i defined the ER= 50...
and when i post my payment when ER =40....of only 10 USD... using residual payments..
I should ideally get (50-40)*10 = 100 as my realisd gain..right!!.. but my realised gain account is not showing that amount...it is calculating the gain..for the whole of the amount present in the GL account.... any help in this regard..??

Hi Aravind,
You do not have to maintain anything at OBBW.
The procedure that you have mentioned looks logical. Since all the postings are over and you are just trying to clear the items, the changes may not have any impact on the books.
Regards,
Mike

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Forex Difference in case of customer partial payment receipt

Dear experts,
we have scenarios where we receive part payment in case of foreign cutomer.
Now when we receive part payment in case of foreign currency invoice we use Residual payment TAB.
In this case system is calculating the forex difference on the full amount not on the partial amount. As per the requirement the system should pass Forex diff amount to the extent of partial received amount to show the correct Realised gain effect.
Example: The invoice amount us 1000 USD @ 45/dollar
               Received part payment 500 USD @ 40/dollar
             I am using T code F-28(Residual payment)
              The USD effect is shown below
                                              USD                       INR
Dr. Bank a/c                            500                      20000
Dr. Customer a/c                      500                      20000
Cr. Customer a/c                     1000                     45000
Dr Exchange Diff a/c                  0.00                     5000
In the above entry the system is passing exchange diff as Rs. 5000 but it should be Rs 2500.
In the above example If I am receiving the full amount within a particular fiscal year then there is no problem, as the net effect of the forex difference will be correct within a year.
Problem arise when i receive the part payment this year and rest of the payment in the next year. Because my realised loss is over stated by Rs 2500 in the above case.
Is there any possible way to show the exchange diff is 2500 not 5000?
Please help anyone.....
Regards
Paul
Edited by: Paul01 on Apr 9, 2009 9:24 AM

Hi
Thanks for your response.
Yes you are right when you say that system revalues the entire customer invoice.
But the company does not want that. They want their actual invoice(remaining balance) to remain with rate at which the invoice was posted. Therefore as per company's requirement system should only revalue the amount in FC (Partial) which is received.
In the present scecario system revalues the entire invoice which inturn show my overstated Realised gain or loss. Now is there any solution where i can only revalue the partial amount.
Note: System does not allow you the change the INR value in the forex diff line item unless i change the FC amount.
Any solution of above problem?
Still not solved, ur suggestion can be very crucial.....
Edited by: Paul01 on Apr 15, 2009 9:03 AM
Edited by: Paul01 on May 5, 2009 8:06 AM

Incorrect forex difference while clearing gl account F-03

Hi,
We have an issue while clearing a GL account(bank account) through T.Code:F-03.
company code currency is USD, our user trying to clear that GL account in GBP currency. he is doing that practicise from the last 4 years, never he didn't have any problem with foreign currency conversions.
entry as below.
bank account 2.95 gbp ... when we double click on the line item to view the company code currency it is showing as 5,500 usd.
when we try to clear other line items in the same account on the same day we are not getting any differences. system is calcuating proer forex values.
for example, another line item with 5.90, when we double click on that it is showing 10.34 usd as co.code currency.
We are unable to identify the problem with line item with 2.95 gbp.
can you please give some idea, what could be the reason?
all the best
Prasad

issue got resolved ... nothing wrong in the system.
Through explanation this issue got resolved.
Prasad

Tables Related to Forex Difference

Please tell me the respective table of Foreign currency difference which contain clearing document details also.

Hi
BSEG is for Forex diff.. fields like RDIFF & BDIFF
BSEC for to find clearing information.
Regards
Ravinagh Boni

Forex difference amount is posting to Gl assigned in PO

Hi All,
Company code currency is NZD
PO created for USD
PO is created with account assignment P project.
MIGO is done at exchange rate of 1.4 ex(100 USD = 140 NZD)
Dr PL account(GL from the PO account assignment) =100 USD /140 NZD
Cr GR/IR                                                                      = 100 USD/140 NZD
Miro Is done at rae of 1.2
Dr GR/IR                                                                      =100USD/140 NZD
Cr Pl account from PO                                                = 0   USD/20 NZD
Cr Vendor                                                                   =100 USD/120 NZD
Now the requirement is user wants Forex gain account which is maintained in OBYC (KDM )instead of system picking the GL from account assignment.
Please suggest is this possible? How?
Regards,
Nagabhushan

Hi Pankaj
Thank You for the immediate reply.
We have checked the PO , the GR Non-Valuated indicator is neither ticked in the PO nor it is active in OME9 .
But the item for which we are doing GR is Non Valuated material (accounting views not existing in Mat Master)
Other Condition masters are maintained as required.
Our requirement is, the Cenvat Account should get debited to Customs Vendor maintained against the condition in the
PO, instead of AUC account.
Kind regards

IR Reversal - Forex Difference

Hi,
We have created a PO in USD and the IR has been done in CAD. The GR
and the IR were reversed on a different date and this resulted in the
difference between the IR and IR reversal (CAD currency) and hence the
balance remained in the vendor account. Please advise how this can be
set off.
Thanks.

HI,
diffrence must be in two accounts u can reverse it, if not set for automatic posting only, by usingf-02.
Warm Regards

Will there be forex gain or loss when you move amt from one GL to another?

Hi,
Local currency Euro
GL account A account currency Euro (has got an open item for usd 100)
GL account B account currency Euro
In the above situation if i use the post with clearing t.code f-04 to transfer the 100 us dollars from one gl account A to another gl account B then the system is calculating forex gain/loss. however is this correct to calculate the forex gain or loss for this transaction? From an accounting point of view, conceptually since we are just merely moving the foreign currency amount from one account to another why shd there be a forex gain/loss is calculated?
Take note that dont reply on how to change the F-04 document posting so that no forex will be calculated, i myself know it, i can just change the exchange rate to be the same as the original document's exchange rate so that in the f-04 document no forex difference is calculated. This is not my question. My question is rather on the accounting principles, as to whether shd there be a forex gain or loss for the above situation.
Can someone comment on the accounting perspective of this?

Hi,
Yes you are right but you cannot say that there is no effect on the P&L because the system generates postings to the P&L and even if the new account is revalued at month end, the forex auto postings made by the system will still be included in the P&L thus overstate or understate the P&L. Therefore i believe i shd not allow the system to post the forex amts during the transfer postings. do u agree with me?
For example :-
System posts a gain of 20 Euro to forex account abc during the transfer posting.
The month end revaluation on the new account is posts a forex gain of 5 euro to forex account abc
Now the final month end standing for forex account abc will be 20 + 5 = 25 when in actual fact it shd have been only 5.

Forward Forex Contract - Business Partner Error

Hi all,
I have a scenario related to Forward Contract with respect to import procurements. The scenario is as below -
1. Contract taken with bank for a fixed value for import procurement. E.g Contract taken for 10000 USD @ 45 Inr on 01.12.2010. The contract validity is 60 days.
2. At the time of making payment for the import procurement, no forex gain/loss is applicable, as the same has been taken care by booking the forward contract.
3. If the procurements are in excess of the contract taken e.g 11000 USD, then the exchange rate gain/loss should be calculated on the balance 1000 USD at the rate prevailing as on 31.12.2010( end of month).
How can this scenario be mapped through FSCM? Should this be done using T.Code TX01?
Any help on this will be highly appreciated.
Thanks,
Hrishi

Hi Ravishankar,
Appreciate the quick response.
Now that you are aware of the business scenario at hand, some points from my end -
1. 1. Contract taken with bank for a fixed value for import procurement. E.g Contract taken for 10000 USD @ 45 Inr on 01.12.2010. The contract validity is 60 days.
I assume that this Forward Contract will be entered in SAP using T.Code TX01/FTR_Create. However, I am getting the error "Partner not authorized for selected transaction type". I have created the partner using T.Code BP, however, it seems that I have selected the incorrect BP Role. Request your help in identifying the correct BP role for this scenario.
2. At the time of making payment for the import procurement, no forex gain/loss is applicable, as the same has been taken care by booking the forward contract.
I assume that this entry will happen through FI using F-53 or F110. However, in case there are forex differences between the dates of MIRO and date of making the payment, the same will be posted here. Is there any other alternative using FSCM so that the differences do not get posted as we have already covered the risk.
When you say accounting for forex forward to be done seperately, what accounting happens in this case?
Looking forward to your comments on the subject.
Thanks,
Hrishi

F.05 - Old difference

Hi all,
Actually my client is running F.05 transaction for reporting the vendor balances at every month end in local currency.
After the postings are made in the vendor, they try to reconcile it manually by multiplying the Exchange rate and the vendor balances in foreign currency existing on the last date of the month and deducting/adding the forex difference GL accounts amount.
Now, while reconciling, get a difference between their manual calculation (which is showing a bigger balance) and SAP's calculation (vendor balances + recon accounts).
The figure is actually the "old difference" in f.05 report.
Now they want to know why this difference is coming in!
Thanks

Hi all,
Actually my client is running F.05 transaction for reporting the vendor balances at every month end in local currency.
After the postings are made in the vendor, they try to reconcile it manually by multiplying the Exchange rate and the vendor balances in foreign currency existing on the last date of the month and deducting/adding the forex difference GL accounts amount.
Now, while reconciling, get a difference between their manual calculation (which is showing a bigger balance) and SAP's calculation (vendor balances + recon accounts).
The figure is actually the "old difference" in f.05 report.
Now they want to know why this difference is coming in!
Thanks

Valuation of inventories when forex exchange diff exist between GR & IR

Hi,
We are implementing ECC 6 to one of our client. Client requires one specific requirement.
When GR is posted with the foreign exchange valuation the system will value the inventory with available rate from the foreign exchange table.
When the invoice is made there is difference in foreign exchange rate between GR and IR.System is taking the foreign exchange difference to inventory account since the stock quantity is more than the invoice quantity.
As per the understanding of SAP on these foreign exchange difference to inventory, I understood that when there is stock in the inventory and if it more than the invoice quantity then the system will post the exchange difference to the inventory account. And if the stock quantity is less than the invoice quantity then the forex difference will be posted to either price difference account or forex exchange difference account as per customization.
But our client wanted to post the difference on exchange whether inventory exist or not to the exchange difference account.
Please suggest us a solution.

Hi
If you fix the exchange rate indicator in purchase order, and doing GR (different exchange rate has been maintianed in OB08), then you inventory will be valuated at PO exchange rate. Difference will go to gain/loss on exchange rate (foreign currency exchange rate account). Same will be negated by price difference account.
You have one more setting for IV exchange rate in MM - LIV - incoming invoice - how exchange rate difference are treated. Here you maintain the settings for GR and IR exchange rate differences.
Checking the exchange rate fix in PO has nothing to do with GR and IR rate differences as through out the process the rate is constant.
Thanks

GR/IR clearing - Foreign Exchange Loss

Hi Sap Gurus,
My Company code currency is u201CCADu201D and my Group Currency is u201CUSDu201D. I have maintained GR/IR clearing account as u201Conly balances in local currencyu201D
I have done GR in 2008 for 100 CAD. And I have reversed this GR in 2010.
When I am doing the automatic clearing of GR/IR: System is posting an entry of Revaluation loss (from KDF trans type) DR To GR/IR clearing a/c (for 0 CAD and in GL view it is 129 USD)
BSEG table has been updated only with zero but in FLAGLFLEXA I could see 129 USD updated in grup currency .
My question is u2013
1.) why the system is looking for KDF currency when I have maintained u201COnly balance in local currencyu201D for GR/IR clearing account u2013 is that because I have maintained this GR/IR clearing account in OBA1 i.e. for foreign exchange revaluation ?
2.) If it so, does the OBA1 setting overrides the u201COnly balance in currencyu201D in GL master ?
3.) As this is just a clearing transaction, Is it acceptable to book a FX loss on this transaction ? and that to it is just a reversal of an erroneous entry.

Hi Pavan,
You have maintained this account in OBA1 for KDF, that is why it is showing forex differences. The difference is in Group currency currency and not in your company code currency.
So, no problem.
Rgds
Murali. N

Payment document cleared partially

Hi Friends,
When we are creating Invoice through VF01. Accounting document is generated. After clearing document the status of the document is states as Accounting document partiallly cleared.
Appreciate your help.
Regards,
Srinivas Muthyala

Thanks for your quick reply.
Third line item for forex difference didnt posted as I have assigned the g.l accounts in T.Code OBVU as below.
                                                                                Loss                 59267001
Gain                 59267011
Val.loss 1           59267110
Val.gain 1           59267120
Bal.sheet adj.1      3019900
Regards,
Srinivas Muthyala

Reversal of documents already valuated

Hi,
I have a problem regarding revaluation.
-I revaluate the august balance sheet on the 2nd of the September
-Then I reverse one of the documents on the 3rd of September which were included on the 2nd of September
-Then I run revaluation again on the 4th of September
The question is if the revaluation on the 4th will correct the impact of the earlier revaluation of the document which was reversed?
How do I adjust that?
Thanks
Danielle

First of all I want to let you know.
You can't run Foreign currency valuation(FCV) whenever you want, this can be executed at period end where system generates the accounting entries for forex rate fluctuations and the same entries can be reversed on next month first date. Beacuse the forex difference is unrealized, so system reverse the same entries on the next month first date.
In your case there is no impact at all beacuse while executing the FCV at period end the transaction can be taken into consideration.
But please remember one thing, FCV has to be executed as a final step, after this you should not post any entries.
Rgds
Murali. N

Material Ledger Startup at year end

Can someone confirm if all the balance carry forwards have to be run before turning on material ledger for the new year or can I just run the GL balance carry forward piece?

Hi,
There is no time constraint for activation of Material Ledger. Before activation of ML, specifically for ML you need not to check any period-end activities. You can continue with your usual FICO closing process. As per process, if you activated the ML for your Valuation Areas, initial preliminary Valuation/Price Control Type for all materials will be u201CStandardu201D. During the period ML will record all Goods Movements Price/FOREX differences posted through different MM related transactions i.e., Goods Issue, GR and Invoice in Price/FOREX differences categories. If you have activated ML on Dec., 28th, price/FOREX differences will be recorded from that date. You need to complete ML period-end activities through T-code-CKMLCP-Costing Cockpit, system will automatically take the average of Price/FOREX differences from different transactions and calculate Periodic Unit Price for Material per Plant. Based on this price, we can get the Actual Product Costing of that material and Inventory Valuations for future period.
Regards
appalas

Automatic outgoing payment in alternative currency

Hi all,
we are using release 4.7 200 and a collegue asked me that in automatic outgoing payment (F110) in alternative currency (USD for example) respect to company currency the system doesn't translate the amount into exchange rate of posting date but maintain the original fi posting in USD. This behaviour is different if I register manual payment (FB01) inputing USD. The system in this case translate the amount in usd into eur taking into account the ex.rate of posting date.
Could you help me please?
Thanks in advance

Dear Naveen,
I checked into customizing and I noticed that in FBZP the relevant currencies are left blank and it seems ok.
I think it is not the point.
Let me explain again and better.
In manual outgoing payment by using (F-53) we post the payment in USD currency and clear the open item generating an exchange rate difference between invoice date and payment date exchange rate because I set EUR as company currency.
It doesn't happen if I run automatic outgoing payment (F110) . The system, in this case, creates a fi posting for payment but it doesn't create any forex difference.
I hope to have clarified the issue.
Thanks
Vir

Forex differences

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