GR/IR Exchange Rate Difference behavior

Dear guru,
I would like to know for the case of Invoice Receipt (IR) before goods receipt (GR) in different month with different exchange rate.
For example:
AUD is the local currency
PO# 1230000001, PO currency EUR, Material A, Unit Price 1EUR each, total quantity 100, without GST.
Invoice receipt (IR) @ 01-Dec-2008, with rate 1.95330 From EUR to AUD.
TCode MIRO
Dr GR/IR   100 EUR, 195.33 AUD
Cr Vendor 100 EUR, 195.33 AUD
Now, we do goods receipt (GR) @ 01-Jan-2009, with rate 2.02740 from EUR to AUD.
TCode MIGO
What should be the proper behavior?
I tried that myself in the system, and found 3 different behaviors.
Behavior A (Both Foreign Curr & Local Curr Amt is the same as IR amt, and a pair of Price Difference Posting)
Cr GR/IR   100 EUR, 195.33 AUD
Dr Inventory   100 EUR, 195.33 AUD
Dr Exchg Rate Diff   0 EUR, 7.41 AUD
Cr Material Variance   0 EUR, 7.41 AUD
Behavior B (Foreign Currency Amount is the same as IR amount)
Cr GR/IR   100 EUR, 202.74 AUD
Dr Inventory 100 EUR, 202.74 AUD
Behavior C (Local Currency Amount is the same as IR amount)
Cr GR/IR   96.35 EUR, 195.33 AUD
Dr Inventory 96.35 EUR, 195.33 AUD
I would like to know where in the system configuration or master setup control the above behavior?
Thanks in advance!
Best regards,
Chris

Hi:
Please check account assignments in OBA1..KDF ,,See if GRIR clearing accounts have been maintained there or not. If not then they should be maintained there . Further double click after maintaining account there and there you will have to assign GL account for exchange rate gain and loss . Also check in OBYC the assignment of GRIR clearing account,
Regards

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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.
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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.
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Posting of Exchange rate differences in parallel currencies

Hello experts,,
We are on ECC 6.
When we enter an incoming invoice with MIRO and the current exchange rate differs from that in the PO, the exchange rate differences in local currency and in parallel currency (group currency) post to different accounts.
Is this a standard feature / behavior? If so, where can i find the settings.
Shouldn't the postings in all currencies (except doc currency), in the event of exchange rate difference post to the same account?
The material ledger is not active.
We have maintained a local currency and a group currency.
Example to illustrate my issue -
DC = JPY
LC = SGD
GC = USD
PO for asset.
PO value = 100000 JPY
Ex rate not fixed in the PO.
Ex rate at PO -
100 JPY = 1.6 SGD
100 JPY = 0.85 USD
Ex Rate at IR
100 JPY = 1.7 SGD
100 JPY = 0.9 USD
When IR is entered,
The exchange rate difference of 100 SGD (@ 0.1 per 100 JPY) is posted to the asset. No posting in USD (though there is a balance of 50 USD).
At clearing (Transaction FB1S - GL account clearing) the exchange rate difference (in GC only, because no balance in LC) of 50 USD (@ 0.05 per 100 JPY) is posted to the Exch. rate difference GL acct.
Thanks in advance for your advice/solution.
B. Regards,
Halaswamy

Hello,
1. You have to assign Forex GL's for the reconciliation accounts in OB09.
2. At the time of payment for incoming invoices, system can read the valuation differences and it will post to Realized Gain/Loss accounts and B/S adjustment account.
3. You can consider this amount to issue bonus to your customers.
Rgds
Murali. N

Exchange rate difference posting in parallel currencies

Hello experts,,
We are on ECC 6.
When we enter an invoice with MIRO and the current exchange rate differs from that in the PO, the exchange rate differences in local currency and in parallel currency (group currency) post to different accounts.
Is this a standard feature / behavior? If so, where can i find the settings.
Shouldn't the postings in all currencies (except doc currency), in the event of exchange rate difference post to the same account?
The material ledger is not active.
We have maintained 3 different currencies.
Example to illustrate -
DC = JPY
LC = SGD
GC = USD
PO for asset.
PO value = 10000 JPY
Ex rate not fixed in the PO.
Ex rate at PO -
100 JPY = 1.6 SGD
100 JPY = 0.85 USD
Ex Rate at IR
100 JPY = 1.7 SGD
100 JPY = 0.9 USD
When IR is entered,
The exchange rate difference of 10 SGD (@ 0.1 per 100 JPY) is posted to the asset. No posting in USD (though there is a balance of 5 USD).
At clearing (Transaction FB1S - GL account clearing) the exchange rate difference (in GC only, because no balance in LC) of 5 USD (@ 0.05 per 100 JPY) is posted to the Exch. rate difference GL acct.
Thanks in advance for your advice/solution.
B. Regards,
Halaswamy

Hi,
Check in t.code: OB22. the 'source currency' used for translation in . There are two options:
1 Translation taking transaction currency as a basis
2 Translation taking first local currency as a basis
Also check the notes:
335608 Trnsln of 2nd and 3rd lcl crcy fm 1st lcl/trns crcy
526623 Different treatment of local and parallel currency in ML
Regards,
Biju K

Exchange Rate Differences when clearing a bank item

Hi everyone,
I'm having a problem when I try to clear a bank item with the bank statement because the document is creating two exchange rate differences, first one debiting to loss account and the other one credting to gain account. I'm not pretty sure if this behavior is the right one but It does not make any sense to me.
I'll detail step by step the process I'm following:
Example:
1.- I create an invoice with an exchange rate type of 15
2.- Then I make the incoming payment with an exchange rate type of 16 (This causes an exchange rate item that is correct for me. Exchange rate Item is for 10 usd)
3.- Then I try to clear the bank item created (same exchange rate than the incoming payment = 16), and now document creates two exchange rate items, the first one debiting to loss account for 10 usd and the second one crediting to gain account for 10 usd.
Could you please help me in order to know if this is ok?
I really appreciate your help
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Best Regards
Manuel Nieto

Hi everyone,
Thanks everyone for your replies. I've realized what's happening, and its related to document split. Because as bank item in incoming payment was splitted, when I try to clear this item ,split happens again no matter if at clearing point exchange rate type is the same as in the incoming payment, that's the reason of the two items one debiting and one crediting for the same amount.
Thanks very much
Best Regards and thanks for your help.
Manuel Nieto

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
uma

Hi 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 between MIRO and GR/IR

Hi,
Exchange rate difference between MIRO and GR/IR we need to written off as a expense for imported w/off expense and in case of assets we need to post exchange rate difference to exchange fluctuation account. Currently exchange rate difference is accounting under capital work in progress(Asset)instead of exchange fluctuation.
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Hi,
At MIRO stage, after entering PO number system will automatically populate the GRN value for selection. Here if you found that invoice value, which you have received from the vendor, is more than the system proposed amount, then you can adjust that diff amount in the GL account tab, which is next to PO reference tab in MIRO.
There enter the exch loss GL account and enter the diff amount.
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Problem while 're-posting' a cancelle Invoice with Exchange Rate Difference

Hi Gurus,
We are facing a problem while re-posting an Invoice with Exchange Rate Difference. I say re-posting because this invoice was previously posted and reversed on the same date. Here is the scenario along with the relevant postings:
1)
G/R is posted in September when the exchange rate for dollar was, say, Rs. 49 = 1 USD.
Posting:
Service A/C.....100 USD (Rs. 4900)
     To SR/IR Clearing A/C...100 USD (Rs. 4900)
2)
MIRO is done in October, when the exchange rate was, say, Rs. 48 = 1 USD. Thus, the exchange difference posting was done in the respective accounts.
Posting:
SR/IR Clearing A/C......100 USD (Rs. 4900)
     To Vendor A/C...........90 USD (Rs. 4320)
     To TDS A/C..............10 USD (Rs. 480)
     To Exch. Difference A/C. 0 USD (Rs. 100)
This was the correct entry, however we missed out some TDS codes and thus needed to reverse this entry and repost it.
3)
Now this invoice was reversed (T.Code MIRO) in october itself on exactly the same date on which invoice was created, and it resulted in the following postings:
Vendor A/C......90 USD (Rs. 4320)
TDS A/C.........10 USD (Rs. 480)
     To SR/IR Clearing A/C...100 USD (4800, i.e. 48 * 100, Rs.48 being the exchange rate in october)
4)
Now when we try to post MIRO again, it is posting the following entry:
SR/IR Clearing A/C......97.96 USD (Rs. 4800)
Exch. Difference A/C.....2.04 USD (Rs.    0)
     To Vendor A/C........... 85 USD (Rs. 4080)
     To TDS1 A/C............. 10 USD (Rs. 480)
     To TDS2 A/C............. 5 USD (Rs. 240)
This is a wrong entry. SR/IR clearing A/C should have been debited by 100 USD (Rs. 4900), and the Exch. Rate difference account should have been credited by 0 USD (Rs. 100)
Can someone please help us with this. What the system seems to be doing is, that when the Invoice was reversed, the value that got reversed for SR/IR Clearing A/C was 100 USD but with Rs. 4800 instead of Rs. 4900. Now, when we try to repost the invoice, the system divided this value by the exchange rate prevalent in September, i.e. Rs. 49, thus the resultant value 97.96 USD (i.e. 4800 / 49).
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Thanks!
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Solved.
The final entry is correct, as the net result in the G/L balances is the same. For further information please refer to notes 116250 and 46564.
Thanks!
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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
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In case where the KDM was not determined, the GR was done for more than one line item.
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Hi 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

Unexplained exchange rate difference

We have created a delivery plan in USD (our local currency is EUR) without fixing exchange rate. This plan has a received several GR and IV at different rates. The material is valuated at standar value.
D.Plan: Rate A , price 15,96 USD/UN
month 1 - GR and IV at rate B
month 2 - GR and IV at rate C
month 3 - GR and IV at rate D
All invoices are posted at a price of 14,32 USD.
In month 1 we had price difference due to differences with the standard price. That was correct.
In month 2 the system has posted unexpected exchange rate differences (key DM). We don't understand them as fas as GR and IV were posted at the same rate.
Could it be that the system is using the rate of the first IV? We wonder the way SAP is calculating that exchange rate difference?

no replies

MIGO exchange rate difference incorrectly.

In transaction MIGO exchange rate difference lines are generated for planned delivery costs. In some cases we found the difference exchange rate comes from the exchange rate of the purchase order, and other times we cannot find where the difference comes from. Both cases are incorrect.
Note 1278540 has already been inplemented.
Any idea?
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Cecilia

hi,
If you make the exchange rate as Fixed via using the indicator in the PO header, then system will take this while GR and IR....if not maintained, then system will take from EKAB table...
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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
MJ

Hi 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.
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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,
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Note : Please raise separate thread for different questions. Your Point No. 5 is not related to the rest.

Whrere to create the Exchange rate difference key in customizing?

HI All,
I've to create the Exchange rate difference key, to put in the master data of G/L Account.
Could anyone show me the customizing navigation to create it?
Thanks a lot

Hi,
to have this functionality you must define you GL account in OB09 and addicional accounts for exchange gain/loss.
let me know if it helps.
regards

Exchange rate difference posted to Group currency only during MIRO

Hi SAP Gurus,
We're activating parallel currency in ML and USD is the group currency. GR/IR clearing acct is managed in local currency only.
OB22
Crcy Type 30    Group currency                               Currency   USD
Valuation        Legal Valuation
ER Type    M     Standard translation at average rate
Srce curr. 1     Translation taking transaction currency as a basis
TrsDte typ 3     Translation date
Please find below scenario:
Co code currency: ZAR
PO: ZAR
Upon GR:
Posting date- 04/14/2009 exch. rate 1ZAR= 0.11099 USD
Entry: debit Expense - 4,078.19 ZAR/ 452.64 USD
          credit GR/IR acct -   4,078.19 ZAR/ 452.64 USD
Upon IR:
Posting date- 04/20/2009 exch. rate 1 ZAR= 0.11279 USD
Entry: debit GR/IR acct - 4,078.19 ZAR/ 452.64 USD
          credit Vendor acct - 4,078.19 ZAR/ 460.02 USD
automatic additional debit Expense - 0.00 ZAR/ 7.38 USD
Here are my questions:
1.) Where would I check the setting for the GL account used in the automatic line entry posted in group currency during IR? (3rd line item above)
2.) Can this be changed? Say instead of the original acct assignment, the management want to change it to FX gain/loss account
3.) How?
I have checked several notes (331910,etc) but I can't seem to find the answers to my questions.
Appreciate your help. Thanks!
Regards
Dru

Just an update to this issue- I just found out that the system is pointing to KBS when posting the
exchange rate difference in group currency upon IR, hence, PO account
assignment is adopted. I'd like to rephrase my question- is there any
way we can change SAP behaviour such that it will point to other
transaction key (e.g. KDG) other than KDM? Bottomline is we want it
charged to other GL account not the one in the PO.
Thanks so much for your assistance.
Regards,
Dru

Exchange Rate Difference Posting

Dear Gurus,
I am facing atypical scenario in Production and development Clients.While clearing open items for a BanlK GL (USD Currency) in production there is no exchange differences being calculated by the syste.There is difference in Exchange rates between the original document and the clearing document.
But for the same GL in Development I am getting Posting to Account maintained in KDB Key.
I would like to know what can lead to difference in scenario that in one case system is calculating difference and posting and in the other case no.
Please help.
Regards
Raju

Dear All,
Let me elaborate the scenarion in more deatil:
We post Foreign Currency Invoice LIV--MIRO say rate is 41 USD/INR
For payment F110 No Exg rate differences is selected in FBZP--So no Exchange Rate Difference is posted for payment.
Now for clearing the bank Sub account Entry posted by APP user input LIV Exg rate in past and systen allowed to clear with no Exg rate Differ.This is OK.
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Can any body please help.
Regards
Raju

GR/IR Exchange Rate Difference behavior

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