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

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Foreign Exchange loss is not getting correct amount

Hi Guru's
I have maintained loss (x) and gain (Y) accounts in OB09 for the GL account (Z). There is two open items for the GL account (Z), in that one is debit open item and another one is credit open item. The difference is 500 TRY and 0 USD.
I just went F-04 and select both open items and save it. When I saw in FBl3N for the Z account, there is still open item with amount of 400 TRY.
As from OB09, total difference amount should be gone to X account that is 500 TRY.
Could you please save me on this.
Regards, MowliT
Thanks in Advance

Hi Murali,
Thanks for your kind information.
As previously said, the GL account (Z) is working fine in test client.
In test, the GL account is open item and maintained key also. There is assiged GL accounts (X, Y) to this key.
In production, the GL account is open item and maintained key also. There is assiged GL accounts (X, Y) to this key.
And also I have checked another open item GL account and it is also having Key.
Please help me......
Regards, MowliT
Thanks in Advance

Foreign Exchange Gain and Loss generated in 1 document...by SAP.

I found a strange line item(Foreign Exchange loss line) after automatic clearing.
No.1: AP document
AP document       Doc.Curr:USD    LCurr:CNY   Lcurr2:JPY        Lcurr3:USD
Dr:AP                    3000                 -19500         -270270           -3000
Dr:Materil-1           1000                 6500            90090              1000
Cr:Materil-2           2000                13000          180180             2000
No.2: Outgoing payment
Outgoing Payment Doc.Curr:USD    LCurr:CNY   Lcurr2:JPY        Lcurr3:USD
Dr:AP                      3000                  19200           230784            3000
Cr:Bank                 -3000                 -19200          -230784           -3000
No.3:Automatical Clearing
Auto. Clearing         Doc.Curr:USD    LCurr:CNY   Lcurr2:JPY        Lcurr3:USD
Dr:AP                      0                         300               39486             0
Dr:Exchange Loss 0                        120               1443               0       <----
why this line generated?
Cr:Exchange Gain 0                        -280               -27286            0
Cr:Exchange Gain 0                        -140              -13643             0
Because the rate is different between AP document and Payment document.(No.1 and No.2)
I thought it should only have foreign Exchange gain, but after I did automatical clearing(t-code F.13)
I found the clearing document had a line item on Exchange loss in Document No.3(the second line).
Who know the reason?
Thanks a lot.

Hi
As per the Accounting the entry is right
Dr:AP 0 300 39486 0
Dr:Exchange Loss 0 120 1443 0
Cr:Exchange Gain 0 -280 -27286 0
Cr:Exchange Gain 0 -140 -13643 0
But actual entry should come like this
Dr:AP 0 300 39486 0
Cr:Exchange Gain 0 -200 -27286 0
Cr:Exchange Gain 0 -100 -13643 0
We need to verify why 200 has come as 280 and 100 has come as 140
Can you verify the date which you have done outgoing payment and date which you have done clearing?
may be different dates with different foriegn currency rate
Reg
Vishnu

Incorrect value of Auto. Gain Loss Foreign Exchange during GR/IR clearing

Dear Experts,
We have activated the Material Ledger functionality.
The Document Currency of PO, GR, and IR are in Foreign Currency.
The postings are below:
Loc Currency 1 = USD
Loc Currency 3 = IDR
Doc currency = IDR
GR
Dr Material               52,980,975 Doc Curr/IDR          5,340.80 Loc Curr 1/USD
Cr AP u2013 GRIR              -75,000,000 Doc. Curr./IDR        -7,560.45 Loc Curr 1/USD
Dr Price Adjustment          22,019,025 Dor. Curr/IDR          2,219.65 Loc Curr 1/USD
IR
Dr AP u2013 GRIR          75,000,000 Doc. Curr./IDR          7,560.45 Loc Curr 1/USD
Cr AP-Vendor              -75,000,000 Doc. Curr./IDR        -7,537.73 Loc Curr 1/USD
Cr Forex AP- Current                               0 Doc. Curr./IDR             -22.72 Loc Curr 1/USD
GR/IR clearing
Loc Currency 1 = USD
Loc Currency 3 = IDR
Doc currency = USD
Dr AP u2013 GRIR          7,560.45 Doc Curr./USD      75,000,000 Loc. Curr. 3/IDR
Cr AP u2013 GRIR              -7,560.45 Doc Curr./USD      -75,000,000 Loc. Curr.3/IDR
Dr Forex AP- Current            0 Doc Curr./USD     1,360,469 Loc. Curr. 3/IDR
Cr   Forex AP- Current                 0 Doc Curr./USD     -1,360,469 Loc. Curr.3/IDR
The problem occured after GR/IR Clearing is performed. The system generated automatic Gain/Loss Foreign Exchange AP-Current with incorrect amount in Local Currency 3. That amount was not match with the delta exchange rate difference on the date of IR is performed and on the date of GR/IR Clearing is performed.
Can anyone inform me what is the probable cause of this incorrect Forex AP-Current calculation? What is the calculation basis that SAP system use to calculate this automatic Forex AP-Current?
Should you require any additional information, please let me know.
Thank you
Best regards,
Frans Sunarja

Hi
First once we have check the exchange rate types in OB08
second one you are no main the gain/loss a/c OB09 w are setting Loss/gain .
Regards
suresh

Foreign exchange gain and loss

Short Text
Foreign Exch Gain / Loss to be booked to a diffr cost center
Long Text
The transaction booked with the following parameters
Step 1:-Transaction booked trough FB60
Foreign currency CHF @ 40/ruppee
Expenses debited (1000-cost center)
Vendor Credited
Step 2:-Transaction paid through F-53
Foreign currency CHF @ 50/ruppee paid
Vendor Debited (Clearing the open item)
Bank outgoing account Credited
Foriegn exchange gain and loss Debited
In ECC 6.00 Version:- The open item clearing inherits the CO objects
from step one except for "Foreign exchange agin and loss line item"
Note:
1) In above scnerio, if foreign exchange gain and loss booked to some
other cost center other than Step one:- Cost Center (Expenses booked).
2) If the foreign exchange gain and loss line item booked to same cost
center as specified in Step one:- Cost Center (Expenses booked).The
below error does not occur.
3) The requirement is to book different cost center for the Foreign
exchange gain and loss line item.
The following error occurs during FB05 transaction execution for
transfering the line item in Bank outgoing account to Bank Main account.
Error Details occur during FB05 transaction execution:-
Start----
Ex.rate diff.accts are incomplete for account 0002500062 currency CHF
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.
END----
Configuration already in place:-
1) Bank outgoing and main account "ONLY BALANCE IN LOCAL CURRENCY" is a
ticked
2) In OBA1 Foreign exchange gain and loss and valuation gain and loss
GL's are defined for respective Reconciliation account.
Regards,
Sathya

Hi,
Is your problem solved, I am also facing the same issue when transffering from Incoming/Outgoing to Main Bank Account. Exchange gain/loss is being calculated by the system.
Please share with me the solution to the above problem.
Thanks & Regards,
Jyoti

Payment Programe Foreign Exchange Gain/Loss

Hi,
Our Co. Code Currency is CAD. I Configured Payment Programe with Two Different Currency i.e. in CAD & in USD. I posted the Invoices in two different currency.
Now, while i was running payment programe, it clears the payment in appropriate currency. but if payment runs in USD then it's not showing me Foreign Gain/ Loss?
Can anybody please let me know why it's happened or How i can over come with this problem.
Your help will be really appreciate.
Thanks,
Niki Shah.

Please help me,
When i run the payment program the system does not calculate the gain/ loss.
My company runs in USD when i make the payment in AUD it doe dont do the gain/loss.
What settings should i do or what am i missing, because it generating the payment but at the invoice date rate not payment date rate.
Then when i get to send the file to the bank, how do i reconcile the bank rate and the payment rate or how does the EBS know how to reconcile the two.
I will really appreciate it.
Thank you.

Accounting of foreign exchange gain /loss on imported material at invoice

Dear Experts,
This is with reference to the accounting of foreign exchange gain /loss on imported material at the time of invoice posting.
Presently all the capital expenditure related procurements are done against the WBSE as account assignment. The material is
procured against the project consumption account with WBS as the account assignment. Since the GR is done on day 1
at a particular exchange rate and the material is directly accounted for against the project consumption account,
there is no stock available.
The invoice is received subsequently and the same is accounted for on say Day 4 at another exchange rate, resulting in exchange gain/loss on account of difference in exchange rate between GR and IR. The same is accounted against a cost element with the additional account assignment as WBS derived from the purchase order.
However, the business requirement is to account for the foreign exchange gain/loss against the Cost center, since the
same cannot be capitalized as per the accounting standard.
In spite of maintaining the default cost center derivation against the foreign exchange gain/loss cost element in OKB9,
the invoice document line item is taking the account assignment from purchase order and not from OKB9.
We have referred the SAP note 105024 and implemented the same.
However, as per the note the following is possible "Use a substitution (Transaction OKC9) to transfer a cost center or a
statistical order as auxiliary account assignment to the document or to replace CO account assignment."
But when we are trying to check the same, the system is updating the required CO object i.e. cost center as auxiliary
account assignment and not as a replace CO account assignment.
We are looking at the option of replacing the WBSE with the cost center in the line item for CO account assignment.
Please help in this regard.
Thanks and Regards,
Mohd. Abdul Moghani

hi,
in OBA1 settings please enter main bank account insteed of exchange gain or loss accounts. then that difference it will post to mail account only insteed of exchange gain or loss account.
with regards
Madana

Foreign Exchange Gain Loss not getting booked

ECC 6.0
Configured
A. OB59 - BSK,EVR,KT0
B. FS00 - 5800000 Foreign Exchange maintained in Local Currency, Automatic Posting is Ticked
C. FBKP - KDF Linked to 5800000 for Vendor Reconciliation Account
Invoice USD @40
Making Payment in F-53 USD @45
Foreign Exchange of USD5 is not getting posted.
Please guide on the same , suitable rewards
Regards

Hi
In OBA1 -
>Prepare Automatic postings for foreign Currency Valuation , Double click on Exchange Rate Difference using Exchange Rate Key -
KDB
give chart of accounts and enter.
give Exchange Rate Difference Key (EKEY) , Expense A/C , Exchange Rate Gain A/C and save.
Go to FS00 and assign this EKEY in Bank Account.
This will work out.
Regards
Venkat

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
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Sach!n

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
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           Forex gain / loss a/c Dr.
Please suggest , if any body has got an idea ..,
Regards,
Sujana

Report for Unrealized/Realized Foreign Exchange Payments and Receipts

Is there a report in SAP that shows unrealized/realized foreign exchange cash receipts and payments. if yes, what is that report. Please provide transaction code.
If not, do we need to create ABAP query. How do we create that Query in this regard. What information are we required to give the Abap person or do we create an Query ourself. How do we create it. please explain with steps.
It is little urgent. Please reply soon.
Thanks
Lakshmi

Hi Lakshmi,
I can try to explain this financial funda more claraly as below:-
Realized Exchnage rate Diffrence Gain/ Loss:-
         When the foreign currency transaction has actually completed and you have gained/lossed due to that transaction is called as realized gain/loss.
         For example you have purchased the goods on 01 Jan, 2008 for 5000 INR (100 USD) on credit. Now on 16th Jan, 2008 you paid the invoice by paying 100 USD and clear it off. But on 16th Jan, the exchange rate between INR: USD came down to 45. So you gained by amount 500 INR (100 USD * (50-45)). This is the realized gain when you clear of the invoice againest the payment.
UnRealized Exchnage rate Diffrence Gain/ Loss:-
         Here the foreign exchange rate diffrence appear but not realized, because the transaction is not cleared up.
         Taking the scenario above, if you do not pay on 16th jan and invoice remains open. You run the F.05 at month end to revaluate the open items and on 31st Jan, the exchange rate came down at 48 INR per USD. Then F.05 will show the unrealized gain of 200 INR (100 USD * (50-48)).
I hope that this clarifies the things. if yes, please assign some points.
Regards,
Gaurav

F-44 - Foreign Exchange Issue

Hi All,
When I clear one invoice say 100 USD with payment of 100 USD in f-44, then exchange rate difference line item is getting created and the same is reflecting in FBL1N but when I make partial payment say 75 USD, exchange rate difference line item is getting created but the same is not reflecting in FBL1N.
Full Payment
100 USD Invoice ( @ 50 INR ) 5000
100 USD Payment ( @ 48 INR ) 4800
Exchange Gain A/c Rs. 200/- ( this line item is created in FBL1N and the same is posted in GL a/c )
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100 USD Payment ( @ 48 INR ) 4800
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Just need to clarify if the above examples with posting are correct.
Thanks in advance....
Anish

Hi,
Foreign Exchange Gain or /Loss will be caliculated when there are cleared itemsu2026. So when you are making partial payment then the exchange rate gain or loss will not be calculated as no items are been cleared.
Instead use residual payment to view exchage rate diff. postings, in case of partial payment when you make the final payment and when the line items are cleared then you can see the exchange rate gain/loss caliculated.
Regards

Foreign Exchange accounting in TRM

Dear Experts,
To give you brief intro, i am a finance person and user of SAP Treasury module. my knowledge of the module is of user level and not of functional or technical level.
i need your help on my below query.
for foreign exchange trades (60A), what should be the right accounting practice thru TRM (1) at time of of entering into deal (2) at time of maturity of transaction and also at time of (3) pre mature or part settlement of the transactions.
currently, i do not post any entry at time of creating 60A/102 deal.
at time of maturity, i does cash settlement in deal, put the cancellation rate, date of cancellation in date box to generate gain / loss and post the same (only cash settlement entry) thru TBB1
in case of part or early utilization or forward contract, i does the pre mature settlement from ftr_edit and copy paste 102 deal details in 105 and 103 deals including contract date and value date except for amount. thereafter, i settle both deals and cash settle 105 deal with cancellation rate and transaction date in date box to generate gain / loss. this gain / loss is posted thru TBB1. in this case, when i have taken early delivery, i have to add or subtract swap points in final rate to arrive at correct rate. also, i have to to cash settle 102 and all 103 deals when there's final amount settlement whether on due date or before it.
in my case, buy sale position of two currencies are shown in cashflow tab as "not rel. for posting" and is not posting even on maturity.
i know i have given bit lengthy details but i really wants to understand
1. is above practice of recording fx transaction is correct?
2. is there any better way to capture early deliveries?
3. in case of early delivery, is it right & necessary to replicate 102 deal details in 105 and 103?
4. what is role of TPM18 which i am not using at all in above scheme of fx set up?
your valuable reply will be of great help to me.
Thanking you all in advance
Kapil

Hello Kapil,
Your questions has covered most of FX process.
I'll try to answer few of your question.
Answer 1) The process is correct, Its based on what your company required consultant has customized the system in that fashion, As you said there is not posting even during maturity of deals, that because in customization setting is missing for posting. Incase its required please consult you consultant to make the changes in system for Flow type-(here relevant for posting is unchecked).
Answer 2 & 3, I'm not sure why consultant has suggested to use such a lengthy process to settle early deliver deal, There might be some reason for the same. Please check,
But the same process can also be addressed, throught FTR_edit and settle the single deal through cash settlement.
Also note, 103 is only used for netting which means you are trying to settle couple of deal together and that can be excluded if you have only single deal.
Answer 4) TPM18 is used to do the valuation after the deal has been closed.Realized gains and losses are determined according to single valuation of transactions principle. This is calculated by taking the difference between the forward rate based on the conclusion of the contract and the posted rate on value date.
Let me know in case you need more information.
Regards,
Jaiin

Valuation of foreign exchange forward with NPV split for interest vs FX impact?

Hello,
I have the following business requirement regarding the accounting treatment of the valuation of a foreign exchange forward deal :
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step1. valuation
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Comment.
So, in fact it is some hybrid combination of the two SAP standard valuation methods
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2. at maturity
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Don't see how this "mixted behavior" can be achieved by customizing the valuation process.
Please help.
Best regards,
Carl

Hi Carl,
In order to use the 2step valuation during the lifetime of forex contracts, you need to combine 2 valuation steps in your Position Management Procedure:
1. step 6 Rate valuation for forward exchange transactions: spot-spot
2. step 4 Security valuation
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As far as i know, at maturity you can only have 1flow of gain/loss by using standard SAP Solution.
Best regards,
Piotr

Hello,I'm trying to buy my MacBook pro, but since I am a foreign exchange student I need a international billing address, and I don't have this choose in the website. Someone know what to do?

Hello, I am a foreign exchange student and I'm trying to buy my macbook, but in the website don't have a choose for international billing address. Someone know what's to do?

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GR/IR clearing - Foreign Exchange Loss

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