MIRO - Postings during Foreign invoices - Exchange rate variance

Hi
I noticed while posting foreign exchange PO's where there is both price variance and exchange rate difference the system posts price variance in foreign currency with a local currency amount of 0 and posts foreign exchange variance in local currency with a foreign currency amount of 0.
can someone explain whether this is standard SAP? What is the logic? How do we do reporting in such cases?
Thanks
Raj

Hi,
As far as foreign exchange rate variance the entries are correct. The difference will be only in Local Currency and not in transaction currency. For example if the transaction currency is USD and Local currency is INR, when there is a change in exchange rate the difference is recorded only in INR. As far as USD is concerned there is no change.
Thanks
Murali.

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Exchange Rate Variance line showing wrong Account

Hi,
Our company is using Oracle EBS R12.1.3. When our Finance users do foreign currency transactions in Payables and match an invoice to the PO then, on the invoice distribution lines, there are two lines (one with the Line type "ITEM" and the other one is
"Exchange Rate Variance"). The ITEM line is Ok but the Exhange Rate Variance Line is showing the same Expense Account as on ITEM line (i.e., hitting wrong account). We have checked the setups in Payable Options. The Account that is defined as PO Rate Variance Gain / Loss is different from the account that is being hit on the Invoice Distribution lines. Why is that so?
Our Finance users are not satisfied with this. They're saying that Exchange Rate variance is not charging to the right account.
Please let me know which setup option am I missing.
Thanks and Regards

Hi Nehmat,
this is an intended behaviour ...
Your purchase order is in Foreign Currency ..
Your Invoice matched to Purchase order is in Foreign Currency ...
Difference between the PO and INV exchange rate has caused Exchange rate variance ..
The entered currency in the above case is Foreign currency therefore entered value for ERV line will be zero ... whereas the accounted line would have the computation for ERV done in functional currency....hence ERV line is acceptable for this case.
Regards,
Ivruksha

Exchange Rate Variance Account

We are having a problemwith an invoice in payables module. It is crediting the exchange rate variance account in invoice accounting but is not selecting the right gl code due to which we are not able to generate accounting for this invoice. Can anybody tell me where do we define Exchange Rate Variance account?
Note: If your answer is PO Price Variance account in Financial Options then we have already checked it and it has the right gl code so there definitely is some other place where the aforementioned code is defined.
I can also provide screen shots of the invoice or the distribution of invoice.

Hi Nehmat,
this is an intended behaviour ...
Your purchase order is in Foreign Currency ..
Your Invoice matched to Purchase order is in Foreign Currency ...
Difference between the PO and INV exchange rate has caused Exchange rate variance ..
The entered currency in the above case is Foreign currency therefore entered value for ERV line will be zero ... whereas the accounted line would have the computation for ERV done in functional currency....hence ERV line is acceptable for this case.
Regards,
Ivruksha

Exchange rate variances between Primary and Secondary Ledger

We have a little problem on our hands.....we are implementing dual ledgers with dynamic posting, primary in Canadian Dollar and secondary in USD.
Exchange rate variances would occur if for example, we consider material transactions at different points in time. We would have no problems in the primary. However, CAD to USD exchange rates are updated monthly and very likely, rates would change month to month. Therefore, exchange rate variances would happen frequently in the secondary ledger.
We have been asked by senior management how these variances would be handled by EBS. Just wondering if you have ideas though we are looking into the accounting events in SLA.
Thanks,
Sanjib

If the requirement was to maintain balance in USD and Canadian dollar, You can use the Reporting currency option instead of Secondary ledger.
Regards,
Chirag

To maintain foreign currency exchange rates

Hi,
Please help me with this scenario.
I want to maintain foreign currency exchange rates.Kindly tell me the process to maintain these rates. and also please tell me that is their any feasibility to maintain exchange rates on daily basis.
Regards,
Pavani reddy

Hello,
you can also use currency worklists in order to maintain exchange rates on daily basis. In order to enable this functionality you have to maintain the following configuration:
1) Define Currency Worklist using the following path: SAP Netweaver - General Setting - Currencies - Define Worklist for Exchange Rate Entry (specify the name of the worklist, short description and maintenance interval);
- assign exchange rate to the worklist using the following path: SAP Netweaver - General Setting - Currencies
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3) In order to maintain exchange rates you will have to use t-code TCURMNT (you can also find this transaction under standard SAP Menu (Fin. Accounting - GL - Environment - Current Settings - Enter Exchange Rates using a Worklist).
In my opinion, this t-code is more user-friendly than the standard OB08. But it's now up to you to decide whichever to use.
Best regards,
The Wirtschaftsmann

Maintain foreign currency Exchange rates

HI Sap Experts,
Maintain foreign currency Exchange rates , whether it is month end activity or year end activity.
for this what is the t/code what are the parameters are need to be given.
Regards,
Prabhakar

Prabhu,
At the very minimum, this is monthly activity ... however, if the company has large volume of transactions in foreign currency, then these rates are typically maintained on daily basis.
You can maintain exchange rates for relevant currency pairs using T. Code S_BCE_68000174. Corresponding configuration tasks are in IMG under NetWeaver General Settings.
HTH,
Manish Patel
Sr. SAP Solutions Consultant

Gain or loss due to foreign currency exchange rate in Travel Management

Hi Experts,
I am facing some issues in foreign currency surrender in Travel Management.
Example:-
An employee goes on a foreign trip in which he takes advance in USD. After returning from the trip, if any USD balance is there then he returns it to company. If the exchange rate falls or increased, then company books it as gain or loss to comany. How the same can be handled in Travel Expense Report. Below is an example of the same.
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INR
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65
35750
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32500
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50
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3250
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50
60
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250
Regards,
Daniel

HI Sigi,
The problem is, during a International trip. While taking the advance, the exchange rate of USD is something & while returning or excess expenditure the exchange rate is different. Because the posting to be done in INR & the expenses are adjusted against the advance.
But when there is a change in the exchange rate then the whole advance is not adjusted. SO to adjust the same the balance amount to be adjusted as gain or loss to the company a/c.
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AP GBP Invoice Exchange Rates incorrect in MRC SOB

Our functional currency is GBP. AP is picking up GBP invoice dates as the exchange rate date meaning USD equivalent(in MRC SOB) is picking up the exchange rate associated to the invoice date. Which is wrong and should be picking up the payment rate date.
Oracle say that MRC uses the exchange rate date to determine the rate. For our GBP invoices this field is not available. Therefore, this field is null and it will then use the transaction date.
Has anyone else experienced this? If so, what is your workaround - if any?
Thanks in advance,
Jovanka

Hi,
Please check the following settings :
Go to IMG --> General Settings ---> Currencies ---> Check Exchange Rate types
Select the Exchange Rate Euro and check mark the EMU check box . Save it
Rgds,
Suresh

MIRO postings during MIGO

Hi Friends,
My client requirement is like this:
During Return Delivery (MIGO - M.type:122), system should post Vendor Debit (MIRO) postings also. They don't want to do it in two steps.
Any user exist available in MIGO to activate MIRO postings.
I couldn't convince my client. Please throw some light.
Regards,
Karthi

Thank you for your reply.
I got a hint from SAP library which may address my requirement. (Manual LIV & Automatic Debit during return delivery)
http://help.sap.com/saphelp_erp2005/helpdata/en/4c/92aa38ac576d1be10000009b38f8cf/frameset.htm
But the problem is, I couldn't found the field "Auto. debit" in vendor master.
Can you help me in this.
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Foreign Currency Exchange Rate with E-Comerce Apps

I'm making a web site for one of my clients so his clients will have access to his inventory and products and they'll be able to add Sales Orders from the web site to SAP.
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What I would like to know if anyone have any recomendations or best practices to work with this problem?

I would try to fill the exchange rates on
SQL query that is linked to a daily basis.
Lets say you update exchange rate every day - at 00:01
You could retreive rates from online bank rates OR
copy the rate from the day before.
Lets say Saturday And Sunday gets rate from friday - which is updated by the company employee. On monday the rates can be revised by employee if needed.
Hope this would help. I would be glad if you could help me do the same e-commerce - for our internal partner website - we would like to have product catalog which customer could register online.
Please help - on how to step on this developer challange.
I'm not a good java or .net developer so give me som tips.
Let me know - If you need some help with SQL code example to do this formatted search SQL that you link in the alert management routine. It will work in the background and the Exchange Rate table will be updated automatically.
Thanks.
G.P.
Message was edited by: Geir Parlati
Message was edited by: Geir Parlati

Foreign currency exchange rate and indexes

hi! anybody could help me what is the purpose of indexes and how it differs with exchange rate..
thanks,
kathy

Hi,
Check this about Indexes :
http://help.sap.com/saphelp_sbo2007a/helpdata/en/4b/4b867a17954b459649c8a46c739879/frameset.htm
Check if this EES on Exchange Rate helps you
https://websmp201.sap-ag.de/~sapidb/011000358700000141342007E/Exchange_Rate_16_2_07.pdf
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Exchange Rate posting to P&L vs B/S during netting, invoice payment and app

Our Netherland company has local currency EUR and group currency USD. We also have a US company where local and group are USD. We consolidate and report in group currency USD.
In NL company, we would like all exchange differences to go to f/x P&L account (both group and local) when the transaction currency is in anything but EUR. However, when the transaction currency is in EUR, we would like the difference in group currency to go to CTA account. How can we acheive that since there is only 1 account that we can use for a group currency?
Thanks

Hi,
Then you need to change the exchange rate based on your LIV posting date.
Check in OB08 with exchange rate type "M" , as when ever the difference in PO and Invoice you need to ask the finance team to change exchange rate as per date on which you receive the Invoice so the posting is done as per the vendor invoice exchange rate.
Do refer the below KBA which explains you in detail how the exchange rate works during MIRO.
KBA: 1700942 - Exchange rate cannot be changed as changing the posting date during logistics invoice verification

FM exchange rate differences during the invoice posting

Hello Experts,
We are working in a public project and we are facing the following:
Due to the exchange rate an invoice is bigger in local amount (EUR) than the PO. In other project, we were moving that difference to another P&L account out of budget. However, here in this project, due to the legal requirements all amount of the budget has to consume budget. Could you help me to resolve this isssue please?
Thanks in advance.
Regards.
Ahmed.

Hi,
Then you need to change the exchange rate based on your LIV posting date.
Check in OB08 with exchange rate type "M" , as when ever the difference in PO and Invoice you need to ask the finance team to change exchange rate as per date on which you receive the Invoice so the posting is done as per the vendor invoice exchange rate.
Do refer the below KBA which explains you in detail how the exchange rate works during MIRO.
KBA: 1700942 - Exchange rate cannot be changed as changing the posting date during logistics invoice verification

Excahnge rate variance on delivery cost in MIRO

Dear All,
I believe that SAP do not create seperate line item for exchange rate variance on delivery cost like it does for origin cost/main price during MIRO. Is it possible to post this exchange rate variance on delivery cost also into a seperate account/line item?
Thanks and Regards,
Gaurav

sd

Vendor Invoice w/ different exchange rate on taxable amount and tax amount

Hi Experts,
I have an issue with regarding the Vendor Invoice with Foreign Currency. Normally we use JPY as our base currency and system exchange rate for out Vendor Invoices. But there was an audit issue pointing out that the Original Vendor Invoice is not tallied with the SAP Invoice as the tax amount is not the same. The problem is the Original Invoice has the Vendor Exchange Rate and it is not the same with the system rate that we use. Auditor tells us that we should use the Vendor Exchange Rate for Tax Amount and use the System Exchange Rate for the Taxable Amount. Is this possible? Can we use 2 Exchange Rates in a single Invoice Document one for the taxable amount and one for the tax amount? How can we possibly do this? Or any workaround?
Thanks a lot for the information!

I think its a bit misleading...The requirement is to post an Invoice with a base taxable amount of Exchange Rate A and a tax amount of Exchange Rate B. The Base Currency is JPY and the System Currency is SGD. So the Report S_ALR_87012357 should see the amount in SGD there. The Issue is caused by the different exchange rate on the tax amount submitted by the Vendor Invoice.
Example: Vendor Invoice Amount: 926,413.00 JPY, then we created PO to Invoice with Base Currency JPYalso amounted 926,413.00 JPY. However, in the Vendor Invoice Amount, the Tax Chargeable is 923.00 SGD (based on their exchange rate 65.66 JPY per SGD). But our Exchange Rate (System Rate) is 63.49 JPY per SGD. How can we reflect the Tax Amount as 65.66 JPY but still the correct SGD amount is based on the Vendor Original Invoice Exchange Rate 65.66 and not the System Exchange Rate, 63.49 in the same Invoice Creation (MIRO)?

MIRO - Postings during Foreign invoices - Exchange rate variance

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