Incorrect value of Auto.Gain/Loss Forex during GRIR 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
Similar Messages
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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 SunarjaHi
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 -
AP Balances' Mess.Xcess of Realised Exchange Gain/Loss Postings.How 2 Clear
Dear Readers,
Our project is stuck with an issue which from the onset a simple issue.
Issue being the AP balances show excess of Realised exchange gain/loss postings.The Realised Exchange gain/loss postings are in USD (i.e. Local Currency).
This creates an issue in clearing when the invoices do not match the balances and the automatic clearing is not possible.
Although reports (income statement and Balance Sheet) give matching results, but AP on the individual level (vendor wise) poses such a problem.
Kindly enumerate the solution.
Its a high priority issue.
Any sort of help is much sought. -
Auto Assigned distribution rule to exchange gain/loss acct in Banking
Hi All,
I have a customer that have this requirement. They wanted the exchange gain/loss account generated by Incoming payment or Outgoing payment to be auto assign with profit center if it is defined at the payment screen.
The result now is, even though you have assign the distribution rule on each reconciled invoice during payment, double entries generated will not have any distribution rule assigned even though it involve exchange gain/loss that is P&L account.
Thanks in advance.
Regards,
MHHi Kamlesh,
Thanks for the reply. However, we can't assigned the distribution rule at Chart of account as the incoming or outgoing payment may involve different division each time thus the exchange gain/loss account should be assign to respective division. Thanks.
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MH -
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
MJHi 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.
3. The configuration setting is in OB09 and SAP allows you to keep same or diff GL for both realised Exchnage rate gain/loss. It depends on how you want to see. technically it is possible.
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,
Kavita
Note : Please raise separate thread for different questions. Your Point No. 5 is not related to the rest. -
Not able to post Realized Gain/Loss GL acct during foreign vendor payment
Dear Experts.
1. When I make a vendor payment by using F-53 for USD payment for foreign vendor. I am supposed to get Realised Gain /Loss account for the variation on payment date.
2. My local currency is INR and foreign Currency is USD.
3. DIrect quote and indirect quote maintained for INR and USD.
4. During payment I have selected USD currency and given the conversion rate.
5. When I paid to vendor, realzied amount did not capture.
My configuration for Foreign currency valuation is as follows:
1. T. COde OBA1. and KDB - Here I maintained unrealized gain and loss account
2. T. COde OBA1. and KDF - Here I maintained Realized gain and loss and unrealized loss and gain along with balance sheet adjustment account for foreign vendor reconciliation account.
Please suggest me for this issue.
Best Regards
SuryaHai Surya,
Check the OBA7 t.code for doc type whatever ur using like KZ in that check the Exchange rate type specified or not like M,G, or B based on ur OB08 t.code settings
Regards
Madhu I -
Compute Unrealized Gain/Loss and Provisions for Valuated Forex Contract
Hi Everyone,
Can anyone tell me how unrealized gain/loss or provisions were computed for forex contract?
I created a spot/forward transaction with the following details:
Product Type: 60A
Transaction Type: 102
Buy Currency: USD
Sell Currency: NZD
Local Currency: SGD
Forward Rate: 0.6864
Spot Rate: 0.7045
Swap Rate: 0.199-
I used midyear valuation w/ reset as a valuation category when I execute valuation in TPM1.
Your response would be greatly appreciated.
Thank you.
CantoHi Murlidhar,
Thank you for the response. Yes, I understand that a gain/loss can be realized based on exchange rate differences between when invoice entered/posted and when paid. That's only part of the gain/loss in minds of the accountants. The other part is gain/loss from time that cash was put into bank account. For example, we spend $100 USD to purchase and deposit R$167 BRL into Brazil bank account. Three months later that same R$167 BRL is worth only $85 USD. At that time we post and pay Brazil invoice on same day in amount of R$167 with no exchange gain/loss on the invoice. System posts credits of R$167 BRL and $85 USD to bank account G/L account. System does not record gain/loss on payment because invoice currency translation date and paid date are same. However, the bank account G/L account balance now reflects R$0 BRL and $15 USD on which system calculates a $15 USD unrealized gain/loss at month end. This unrealized gain/loss on the bank G/L account posts and reverses each month just as you said but never goes away. In minds of accountants the $15 USD gain/loss should be recognized. How best to recognize the $15 USD gain/loss, that is the question.
Thanks
Steve -
Forex Gain/loss posting from prior interest Accruals in capitaliization scenario !!
Gurus,
This is a decent question.
In SAP MM instruments, how do we post
Forex Gain/loss arisng from prior interest Accruals in capitaliization scenario !!
1. Is it REALIZED OR UNREALIZED gain/loss?
2. Should it even be considered Gain / Loss, in which case Accounting Entry will be like
DR/CR Interest Accrued
Cr/DR Interest Accrued Discount
Please advise.
RahulHi Rahul,
Can you explain what do you mean by prior interest acrruals in capitalization scenario.
If you have a MM product which you are capitalizing the interest , then for previous month the accrual interest posted which is already posted will remain.
I am not clear about the scenario. Care to explain it pls -
Exchange rate gain/loss during F-28
Hi
we have following secnario:-
1. company code A with local currency AED and group currency USD
2. company code B with local currency USD and group currency USD
now invoice posted in both comapnies and accordingly payment received as follows:-
1. Company code A (local currency is AEd) - invoice posted in local currency but payment received in USD
2. comapny code B (local currency is USD) - invoice posted in local currency but payment received in AED
system behaviour:-
1. comapny code A for which local currency is AED but payment received in USD - system post exchange rate gain/ loss
2. company code B for which local currency is USD but payment received in AED - system doesn't post exchang
I am not able to understand this behaviour as system configuration is same (as COA is same for both company) for both company and accordingly rate is maintained in OB08.
please share your viewpoint on this.
Regards
DDHi Kiron
Thanks for response and link.
But the information given in the link is not my case. in my case system dertermine the correct GL but the problem is its happening in one company code but not in other.
for both company code setting is same for OBY6, OBXL and tolerence limit.
Please revert
Regards
DD -
Additional line item for Exchange rate gain / loss
HI,
We ahve three currency as Main currency (INR), group currency (INR) and Hard currency (USD).
When we pay to vendor or received from customer, system generate additional line item for Exchange rate gain / loss with Rs. Zero . But transaction is in INR. But it has value in USD as USD 0.01.
Please suggest.
Regards,
HarshalHi,
I got your point.
Its a standard behaviour as part of parerral valuation with addtional local currency.
Please make sure that the below are set in your system.
1) in OB22, for your company code, for the HARD CURRENCY--The source curr must be Translation taking first local currency as a basis
2) For every foriegn currency you use, you maintain the exch rates in OB08 with Foriegn Currency 2 Local Currency combination always. And at the same time make sure that there is no opposite combination rates for the same.
(Like 1 USD = 50 INR...1 GBP = 80 INR....1 EUR = 60 INR only)
These may avoid most of the cases where 0.00 LC value lines during clearing.
Regards
Srinu -
A/R and A/P invoices and credit memo realized currency gain/loss report
Hi,
We need some help in getting a report from SBO.
We would like to analyze their realized currency gain and loss account. We are lookiing into a report that shows the individual invoice/ credit memo foreign and local currency amount against the incoming / outgoing payment foreign and local currency amount.
Sometimes we would do direct offset invoices in the incoming / outgoing payment, and sometimes it would be thru internal reconciliation. We have look thru the tables for the past 2 days but could not find any link between the invoices and payments especially so when reconciliation is performed.
Can this report be done either in XL Reporter or in SQL? If yes, which tables are these information store?
Thanks.
Regards,
Whay PengHi Jimmy,
There is no need to run the exchange rate differences, when invoices that was offset during the incoming and outgoing payment. The realized currency gain/ loss account will be generated when the incoming and outgoing payment is made.
During reconcilation, yes we did run the exhange rate differences to get the realized currency gain / loss.
Could it be the two tables that you mentioned are storing information on the unrealised currency rate differences? We did not run exchange rates differences to provide for any unrealized gain/loss for the period, therefore the tables on our end is empty.
Regards,
Whay Peng -
Cash Management gain/loss calcs with autooffsets turned on
Please forward any experiences with workarounds/processes for creating exchange gain/loss journal entries for foreign currency payments. Client needs Auto Offsets on, therefore, Cash Management can not create the journal entries.
Any help is greatly appreciated.
Thank you.Normally exchange rate gain & loss is handled within AP when you make the payment (As long as you book the payment in the system in its proper foreign payment currency).
However, with Cash Management what you might see is a bank charge in addition to the foreign payment on one statement line.
So a bank statement line might show: GBP 125
This might represent a foreign payment in AP PLUS a charge made by your bank for processing the foreign payment.
If you are also using Oracle Receivables you can set up a 'Receivables Activity' and default it to a particular GL account (e.g. a particular gain/loss account or bank charges account). Then in Cash Management you can use this Receivables Activity to book a transaction for the bank charge.
The high-level process would be as follows:
1. Manually reconcile the AP Foreign Payment to the statement line
2. (While on the same statement line) click the 'Create' button. From here you can create/book a miscellaneous transaction (using any pre-defined Receivables Activity)
The point to mention is that this is obviously not automatic. But I hope it helps.
Tony
<BLOCKQUOTE><font size="1" face="Verdana, Arial, Helvetica">quote:</font><HR>Originally posted by [email protected]:
Please forward any experiences with workarounds/processes for creating exchange gain/loss journal entries for foreign currency payments. Want to generate all journal entries through Cash Management.<HR></BLOCKQUOTE>
null -
hi mm gurus,
my client has faced a problem
After reviewing their month end account they noticed that there are huge variances in Gl Code 429003 ( Stock Transfer Gain/Loss ) for different material... .
Grateful if you could revert to it and advise
Please advice the possibilities
Thanks in advance
subbuHi,
If you move a material from one plant to another and the valuation price is different you will get postings to this account.
You will also get postings to this account if the 309 movement type has been used (you must not use 309 to correct errors, it should only be used if a material has GENUINELY change to another material due to the passage of time).
To check what else could be posting to this GL there is a noce function hidden away.
Go to SPRO
Materials Management > valuation and account assignment > account determination > account determination without wizard > configure automatic postings
Get rid of any warning messages then click on the "GL accounts" icon (next to simulation). Enter the company code involved and you will get a list of every account that is automatically posted to. It will also give you some indication as to why it was posted (which transaction event key and account modifier was used).
thios si a really useful report for finding out (checking) which GL accounts are auto posted to via MM (and why)
Steve B -
Gain/loss amount details in AR
Hi All,
Can i know where the forex loss and gain amounts are stored in AR
Thanks,
SanjeevHello Sanjeev.
Cross Currency Exchange Gain/Loss Report
Use this report to review detailed information about your cross currency settlements.
This information includes:
-the transaction number and currency
-the amount applied to each transaction in both the transaction and your base (functional) currency
-the amount of the crosss currency receipt allocated to the transaction
-the cross currency rate used for each application
-the foreign exchange gain or loss (FXGL) for each application
-information necessary to compare the FXGL you would have realized if you had used the cross currency rate maintained in your General Ledger
Hope this helps.
Octavio -
Realized gain/loss posting
Hi,
Which T-code to be used for posting realized gain/loss ? I read in earlier posts that TPM18 can be used, however, am unable to understand that t-code as it is under derived flows. Kindly helpHi,
Treasury itself is managed at the subledger level only. So there is no specific need to integrate with customer and all.
For your point for posting derived business transaction you need to assign update type for derived business transaction for your position management procedure under general settings - accounting -- derived business transactions -- update types
After that it is similar to your other posting update types you need to specify the posting specification.
In TPM18, you need to give the Value date for realizing the gains on that date.
Regards,
Ravi
Edited by: Ravishankar Ramamurthy on Nov 17, 2009 11:07 AM
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