Posting in Foreign currency

Hi all,
We have created following transaction in Foreign currency
Purchase Order with exchange rate of Rs.48/- per USD
          Qty     Rate in USD
1     Item 1     5000     25
Goods Receipt P.O. with exchange rate of Rs.49/- per USD
          Qty     Rate in USD     Total
USD
1     Item 1     4000     25     1,00,000
Journal Entry for GRPO is as follows
     Account     LC   INR     SC INR     FC USD
1     Inventory Account     49,00,000     49,00,000     1,00,000     Debit
2     Goods Receipt IR     49,00,000     49,00,000     1,00,000     Credit
A/P Invoice with exchange rate of Rs.50/- per USD
          Qty     Rate in USD     Total
USD
1     Item 1     4000     25     1,00,000
Journal Entry for A/P Invoice is as follows
     Account     LC   INR     SC INR     FC USD
1     Vendor     50,00,000     50,00,000     1,00,000     Credit
2     Inventory Account     1,00,000     1,00,000     2,000     Debit
3     Goods Receipt IR     49,00,000     49,00,000     98,000     Debit
Now when we see General Ledger for account Goods Receipt IR it shows balance as zero in Local and System currency, where as it shows USD 2000 credit in Foreign currency (FC).
The customer expects Goods Receipt IR to be zero by having journal entry for A/P Invoice as follows Journal Entry for A/P Invoice is as follows
     Account     LC   INR     SC INR     FC USD
1     Vendor     50,00,000     50,00,000     1,00,000     Credit
2     Inventory Account     1,00,000     1,00,000          Debit
3     Goods Receipt IR     49,00,000     49,00,000     1,00,000     Debit
Thanking in advance,
Samir Gandhi

Hi Samir,
The Goods Received NI (Allocation Cost Account) need to be balaned in Local and System Currency as this is a Multi Currency account and these are the currencies that Business One will offer reports in.
The Foreign Currency for this account is irrelevant as you can never get a balance in FC for a multi currency account, neither will you find any reports for this.
If the client insists you can create a manual Journal entry in FC only to correct this. Business One does not offer any functionality to correct the Foreign Currency in this scenario. (like Exchange Rate difference for Local Currency and Conversion Differences for System Currency)
To do the manual JE open the form settings and the tab 'table', here untick the box 'From FC Field'. This will enable you to create a FC JE only.
Hope it clarifies the issue.
Jesper

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Intercompany payment posting after Foreign currency valuation - F.05

Hi Gurus,
I have an issue with intercompany payment posting after foreign currency valuation run.
Build Up:
Let me give you a brief description first. Company u2018Au2019 has open items from Company u2018Bu2019. Basically Company u2018Au2019 charges management fees from Company u2018Bu2019. Both companies have a local currency of u2018EURu2019 and a group currency of u2018USDu2019. The open items posted in company u2018Au2019 have been accumulating for two years now. In January of this year finance decided to run the foreign currency valuation (F.05). The method they used was the reversal method. So at the beginning of the next month the entries from the valuation were reversed. They repeated this in February as well. Note this is the first time the foreign currency valuation was performed in SAP, before it was done manually. After February they never ran the foreign currency valuation run.
Issue:
Now what is happening is, when open items that have been accumulating for over two years and are before the foreign currency valuation run are cleared (payment is made) there is a exchange rate loss/gain. When the open item is cleared there is posting to the G/L account for Balance sheet adjustment and also an exchange rate loss/gain G/L account.
Posting:
Debit u2013 Cash
Credit u2013 Customer (intercompany)
Credit u2013 Balance sheet adjustment account (unrealized loss)
Debit u2013 Profit and loss account (realized loss)
The balance sheet adjustment account that is posted to is from OBA1 u2013 KDF u2013 balance sheet adjustment account in the foreign currency valuation accounts. Currency translation account determination is empty in OBA1.
I understand the system while payment posting is clearing/offset the unrealized loss/gain and posting the realized loss/gain. But how is this possible, when the foreign currency valuation run was done the entries were reversed so there was no unrealized loss/gain posted.
Also another caveat: Isnu2019t foreign currency valuation for open items that are posted in foreign currency and need to be revaluated to local currency. Well that is what is puzzling the open items posted in company u2018Au2019 are posted in local currency u2018EURu2019 so the foreign currency valuation should not affect these open items, correct? And if this is true then when the open items is cleared the unrealized loss/gain should never be cleared since there is none posted the exchange rate difference should only be posted to the realized account in the profit and loss correct? Please help? I can explain further if needed?
Thank you.
Comments and facts:
Companies fiscal year is June u2013 May.
Company u2018Au2019 and u2018Bu2019 have a local currency of u2018EURu2019, group currency is u2018USDu2019
The invoices in Company u2018Au2019 were posted in u2018EURu2019
The foreign currency valuation was only ever run in January and February of 2010.

HI ,
I believe becuase you did not enter any date that's why they did n't reverse automtcially . You need to enter to reverse.
now you can use f.80 mass reversal for all of them
Many Thanks

Posting in foreign currency not allowed for external tax system

Hello all,
I created a purchase order for inter-company stock transfer. Then created a corresponding outbound delivery and goods issue using VL10h and completed goods issue. Then I completed good receipt using MIGO. When I was trying to create a sales order I got this message "Posting in foreign currency not allowed for external tax system". What could be the reasons for this message. The message number said FS885.
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Hi Samir,
The Goods Received NI (Allocation Cost Account) need to be balaned in Local and System Currency as this is a Multi Currency account and these are the currencies that Business One will offer reports in.
The Foreign Currency for this account is irrelevant as you can never get a balance in FC for a multi currency account, neither will you find any reports for this.
If the client insists you can create a manual Journal entry in FC only to correct this. Business One does not offer any functionality to correct the Foreign Currency in this scenario. (like Exchange Rate difference for Local Currency and Conversion Differences for System Currency)
To do the manual JE open the form settings and the tab 'table', here untick the box 'From FC Field'. This will enable you to create a FC JE only.
Hope it clarifies the issue.
Jesper

Currency converting in 5 decimal place, time of posting in foreign currency

Hi
I am facing one problem at the time of posting of advance with bank charges in foreign currency USD.
While i am trying to post advance to vendor with T code - F-48 with USD currency i mention the exchnage rate 51.56 , bank charges 500 in local currency(INR) , system showing 2 paise less 515,599.98(INR) if i chosse 10000 USD in vendor item.
But same time if i am choosing exchange rate - 61.26 system showing right value 612,600.00.
And if i am taking exchange rate 49.52 system showing right value,
Awaiting for valueble reply.
Regards
Anjan

I would have done this with much less effort.
If your currency has standard 2 decimals, then just use a price unit of 100 instead of 1 in your material master valuation view.
So you reach an accuracy of 5 decimals per one unit.
And my solution does not have any impact on purchasing activities.
Edited by: Jürgen L. on Jan 24, 2008 11:50 AM

How to clear invoices posted in foreign currency in APP VERY URGENT

Hi Sap Gurus,
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local currcy incoive was cleared but usd curcy invoice went to exception list
Why this happened?
how can i clear foreign cuurcy invoices in app ?
How can see the exception list ?
can i edit r delete the payment proposal ?
what is the use of additional log in f110 screen?
thanks in advance for ur answer
points wil b assigned
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Hi Rajesh,
Pls. check following in your payment program configuration. Configuration of Payment Program can be access through APP Tcode F110. Go to Environment --> Maintain Configuraiton.
Check Following:
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Hi all,
I want to ask something.
Say I got a G/L account with the account currency USD. Say this G/L account is 10000 - Swiss Bank (USD)
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Jan     1             1.1
Feb    1             1.3
Mar    1             1.4
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Say in Jan I use fb50 to post 1000 USD to this bank.
So there is a +1000 USD and +1100 SGD to the bank.
And in Feb I do not post anything, so comes Mar, the balance in the bank is still 1000 USD and 1400 SGD.
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Hi,
Since this is realized exchange loss, it needs to be transfered to exchange gain/loss account. If you have maintained this account as open items, then you can do this by clearing the open items. If not, you have to pass a manual entry.
Let me know the t-code you used for the second option. It'll help me to understand the scenario well.
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Posting in local currency on foreign currency account/correctionOfValuation

Hi everybody!
I have a problem, and I hope someone will help me.
Is there any way to make posting in local currency on account with foreign currency as the account currency?
The reason why I'm asking this, is that I have to make corrections to currency valuation.
This is the situation: they made foreign currency valuation for last period of previous fiscal year. Instead without reversing, they made it with reversing, on the first day of 1. period in the new fiscal year. After this, they made reversing (fb08) of reversing document created by valuation program. Of course, after all, they have wrong valuation for every next period.
I have to make corrections in 3. period (1. and 2. are closed).
This is my idea: I want to make valuation for date 31.12.2006. with postings in 3. period, without reversing, and than, to make posting of valuated amount, but with opposite sign mark (if the valuation was 1000EUR debit, I'll make 1000EUR credit). I want to have effect of reversing, without running fb08.
Balance for the 3. period will be 0, but every next valuation will be ok (it will valuate difference for 31.12.2006., not difference for document posting date).
If anybody have idea how to make posting on foreign currency account, or the other way to make correction of valuation, I'll be grateful.
Best regards

Create one FI documents with multiple line items as per the following example. In this case you need to enter amount in both local currency and in document currency fields-
If you want to post credit of USD 5.00
Line 1: Local currency Dr. USD 5; Doc currency =x
Line 2: Local currency Cr. USD 10; Doc currency =x
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Hi Gurus,
I have accounts maintained in local currency and only balances in local currency is not checked. Some items are posted in foreign currency.
Now system is doing foreign currency valuation on foreign currency balance of this account. I dont want system to do that.
Now how to correct it. I can make balance zero of account and then mark that tick of only balances in local currency but still system will do foreign currency valuation on items posted.
Appreciate you help in solving this issue. How to handle it?
Thanks

Hi ,
While executing Foreign currency valuation, you can select the GL accounts for valuation. Try to not input these local currency GL's.
Cheers,

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HI i want to post foreign currency document in Fb01. i am facing following error as shown in screen shot
I have maintained exchange rate type M in OBA1 and even then its prompting for EURX .
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kaushal ghedia

Hi Kaushal,
Are you posting in Local i.e Co Cd currency or foreign currency.
When ever we make posting in foreign currency, system automatically convert it into local currency because of this system is asking for exchange rate for this.
So please check below settings .
Go to transaction OBBS and check the ratio between the USD and EUR, than
Go to Transaction code OB08 and maintain the exchange rate for Type M, between USD and EUR.
Check the Controlling area currency too in OKEQ.
Check client currency in SCC4.
If above setting is fine then you need to take help of ABAPr to debug.
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Atul

F-05 - Post Foreign Currency Valuation - IDOC TYPE

Anyone know how to configure a FIDCC1 to post a foreign currency valuation (transaction F-05)?
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I think we can't use BAPI for this transaction...Goto shdb and create a recording for F-05 and write a BDC for this recording and upload data from file and use the BDC to post data.

Vendor Balances in Foreign Currency

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In standard SAP, S_ALR_87012082 Report displays the Vendor Balances in Local Currency. Is there any Std. report similar to this which displays the Vendor Balances in Foreign Currency. Because there could be some foreign vendors invoices are posted in Foreign Currency.
We are in ECC 6.0
Any inputs please.
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Balaji

Read the data from LFC1 Table and use Function module to convert into foreign currency FM - CONVERT_TO_FOREIGN_CURRENCY
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Create items by vendor and customer on Foreign Currency Valuation

When we execute Foreign Currency Valuation, we would like to create items in a document by vendor and customer.
Can we handle it a 'Corp.group-vendors' flag(Evaluate Accounts According to Group Definition) ?
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Sato.Ishikawa

HI,
With the report SAPF100, you will be able to valuate foreign currencies
from customer and vendor accounts.
It is not possible to post a foreign currency valuation directly to a
vendor or customer account. This is only possible for g/l accounts.
You can refer to the following workarounds:
From the technical point of view you can use FB01 to post such a posting
You have to enter a exchange rate manually in the first screen. In this
case this exchange rate is used instead of the exhange rate of table
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You have to choose a exchange rate which transfer the amount in local
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RFBIBL00 in transfer type direct input for FB01.An amount of 0 in
foreign currency should work.
The system is designed not to post documents with 0 amount in foreign
currency to vendors/customers.
Reg
Madhu M

Foreign Currency Settings

hi,
Can anyone send me important configuration required for maintaining foreign currencies at Flat rate.
we always make forward contracts for exports with bank therfore our exchange rate is gets fix for a particular period.

Dear Sayujya,
http://help.sap.com/saphelp_erp2005/helpdata/en/96/8b331243ce11d189ee0000e81ddfac/frameset.htm
Foreign Currency Valuation
In order to create your financial statements, you have to carry out a foreign currency valuation. This valuation covers the following accounts and items:
Foreign currency balance sheet accounts, that is, the G/L accounts that you run in foreign currency.
The balances of the G/L accounts in foreign currency are valuated.
Open items posted in foreign currency.
The line items in foreign currency are valuated.
You have the following options for the foreign currency valuation:
You can carry out the valuation in local currency, (company code currency), or a parallel currency (for example, group currency).
You can also use different valuation methods (for example, lowest value principle).
In addition to the foreign currency valuation, you can also carry out a currency translation in accordance with FASB 52 (US GAAP). You can thereby translate your account balances from local currency into group currency, for example.
Prerequisites
To carry out a foreign currency valuation, you must first make certain settings in Customizing. You make the settings in Customizing under Financial Accounting -> General Ledger Accounting/Accounts Receivable and Accounts Payable -> Business Transactions -> Closing -> Valuating -> Foreign Currency Valuation.
You must define the exchange rates. See Exchange Rates
You must also define a valuation method. Choose Define valuation methods.
You must also define the expense and revenue accounts for exchange rate differences from valuations. For payables and receivables accounts you must also define the financial statements adjustment accounts. To do this, choose Automatic postings for foreign currency valuations.
If you want to carry out a parallel valuation, you must also have defined a valuation area. Choose Define valuation areas.
The exchange rate differences from the parallel valuation are posted in this valuation area. If you carry out a parallel valuation with a different valuation method to the first valuation, you do not have to reverse the postings from the first valuation. This information is then available for subsequent closing operations, for example, Transferring and Sorting Receivables and Payables
Features
You can use report SAPF100 for the foreign currency valuation. This report carries out the following functions:
Valuation of foreign currency balance sheet accounts
Valuation of open items in foreign currencies
Saving the exchange rate differences determined from the valuation per document
Carrying out the adjustment postings required
The following topics describe how to carry out foreign currency valuation using the reports, and how to post valuation differences. You can also make this posting manually. From the SAP Easy Access screen, choose Accounting -> Financial accounting -> General ledger -> Document entry -> Valuate foreign currency.
Activities
To carry out a foreign currency valuation, from the SAP Easy Access screen, choose Accounting -> Financial accounting -> General ledger/Accounts receivable/Accounts payable -> Periodic processing -> Closing -> Valuate -> Foreign currency valuation.
Hope this will help.
Regards,
Naveen.

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Hi,
While I run foreign currency valuation even tick on check box of Create Posting button under FAGL_FC_VAL it show me summary report and posting tab it show me properly Debit/Credit entry on last day of month and 1st of month it become reverse as usual. But while I go through respective GL account of "Forex Unrealised Profit" and " Foreign Exchange Adjustment" account in FBL3N it does not show me line ietms result after running foreign curreny valuation. It should show the result in respective GL accounts where line items are tick in each GL accounts and valuation method I use EVR(always valuate). Why it is happening ?
Best Regards,
Anindita

Hi,
After executing FAGL_FC_VAL, do you execute Batch Input Session in SM35. If no then
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Foreign Currency Posting Clearing

Hi,
I have a foreign currency clearing issue. Please look-in to my scenario below.
We are in SAP R/3 4.6C. We have two billing document (open item) one is advance payment and other is billing invoice with same amount (in foreign currency) and foreign exchange rate.
Now we have run the valuation for the both the document and reversed the same. Here when i check the BSEG after reversal, the BSEG-BDIFF (Valuation diff.) is updated for one document (Adv payment) only not for the other billing document.
the problem is that when we try to clear the documents, one more entry is getting generated for the account ( Bal. sheet adj.1) which we have maintain in OBA1 for the down payment account, this account should be posted at the time of valuation only not at the time of realization.
Please correct me if i have mistaken the concept.
Here what i could find, if at the time F.05, we have check "Bal. sheet preparation valuation" then the only the different posting will be set in BSEG-BDIFF. BUT here we have valuated both these documents by one document only and the reversal also done by one document only then why for one document only the field BSEG-BDIFF is updated.
How this extra posting happen to Bal. sheet adj.1 account will get nullify to have right status of Bal sheet.
Please let me know if more information required.
Regards,

Hi,
Valuation entries are only for the ake of financial statements.
Realizaton entries are real entries.
System doesnt post to "Bal. sheet adjustment account" at the time of realization, it posts only at valuation time.
Please check FCV again.
Rgds
Murali. N

Posting in Foreign currency

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