G/L Master Record setting not updated in table.

Question

Hi,
This might be very basic question but i am stuck with it. while creating G/L Master data in Control Data Tab there is one function which is not working.  The check "balance only in local currency" Whether i check it or not system is showing balances in local currency in "FAGLL03" when i mark the check box and post to this account in a currency other then local currency which is company code currency and view the G/L Account in "FAGLL03" system translates the  Amount in local currency and shows the balance in same.why is this so am i understanding the use of this function or is there some issue with it?
Regards,

Answer 1

Hi Faizan,
Use of Balance in local currency:
The indicator is usually set for the balance sheet accounts without open item managed, in which no foreign currencies are managed .
When creating a G/L account in a company code, you can decide whether the transaction figures should only be kept in the local currency for this account.
You have to set this indicator for clearing accounts you use to clear line items in various currencies with  one local currency amount and  without posting any exchange rate differences that may occur.
You have to set this indicator "Balance in Local Currency" for the following accounts:
Cash discount clearing accounts
Clearing accounts for goods receipt / invoice receipt
  Foreign currency
  Local currency
Invoice receipt
    1000 USD
    1580 DEM
Goods receipt
    1580 DEM
If the indicator is set, the two line items are cleared.
If the indicator is not set, the system also posts any exchange rate difference as well when clearing. The system then determines the DEM amount necessary to clear the 1000 USD amount. If the exchange rate is 1.60 for example, the system makes a posting of 20 DEM for the exchange rate difference to clear the two line items.
Note: Do not set this indicator for A/P A/R reconciliation accounts.
Regards
Javed