Reversal of unrealized exchange difference
Dear Experts,
I need your advise on the following issue.
At our company we revaluate both bank accounts and open items in foreign currencies at each month end. At the beginning of the next month, unreal.exchange differences for open items are reversed but differences for bank accounts are not. Accordingly, we have permanent balance in P&L account for unrealized exch. rate gains and loses.
I would like to know if there any unirom approach to dealing with this issue. Do you have to reverse gains/loses for bank accounts each month or leave it as it is and make one journal entry to reverse accumulated gains/losses if/when particular bank account is closed, e.g. foreign currency balance is 0?
Thank You,
Hi Srinivas
Thank you for input.
Yes, we are not making any reversal for bank accounts, but are reversing gains/loses for open items such as accounts payable/recievable. Is this the case with other SAP users?
The issues is that P&L account has accumulated unrealized difference due to non reversal for bank accounts. Do we need to post accumulated balance to realized gain/loss when bank account is closed (zero balance in foregn currency)?
Best regards,
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How do we account for when the exchange rate changes between PO and invoice?
I have posted an A/P invoice on to our system for $1,000,000 on 31 October 2007 when $1 = £2.00
I have now paid the invoice so $1,000,000, but the exchange rate is $1 = £2.10
2 questions - How do I match the payment against the invoice?
Granted the $ is zero, but the Business Partner shows a £ balance of (($1,000,000 / 2) ($1,000,000 / 2.10)) = £23,809 difference in exchange rates. So how do I account for the exchange rate difference to clear the account?
Many thanksThis is manual work. you could use exchange rate differences as a standard one. It is available in financial module. you execute on the date where you post the AP invoice. There is GL account for realized exchange rate gain and loss that must be set in the GL account determination.
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Iam explaining my query based on an example:
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hi sap gurus
I am facing one problem in foreign currency valuation . Company code currency is INR
We are issuing sales invoice to one customer in USD for 1000 US$- rate on the date is 50 INR=1 US$. Receivable in INR 50,000.Customer reco acct is in INR
Customer is making payment in US$ 1000 (F-28) rate is 48 INR=1 US$
We are receiving 2000 INR less but system is not accepting the rate given in F-28. It is taking rate for invoice and converting 1000 US$ TO 50000 INR.
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Customer reconciliation account is mapped into fbkp.In f.05 entry is properly getting generated and reversed for monthly closing.Hi Nitin,
Try this....
In Company code global parameters--OBY6,check the Indicator: No ex.rate difference when clearing in local crcy.
Thanks
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