SAP FICO-parallel currencies

Hello experts,
All my currencies are set as USD in OB22 still in the GR/IR there is variance in Group crcy amt and GC/gr.val. amnt.
Please advise.
Shrirang

Hi,
We have faced similar issue in past. We have raised OSS message to SAP, in nutshell OSS team has explained following to us:-
Postings from module MM (-> logistical invoice verification, i.e. transaction MIRO, and inventory management, i.e. transaction MIGO) the amounts in local currency are calculated/determined in module MM, and the amounts in a parallel currency, i.e. second and/or third local currency, are calculated/determined in module FI.
OSS team has explained us with our problem scenario:- how local currency amount is calculated and why it is differing.
Regards,
Anand Raichura

Similar Messages

Issue with Asset Managemenet (parallel Currencies)

This message is from my customer:
Capital investments are kept in Asset Managemenet (FI-AA), balances are integrated part of FI-GL, shown on respective accounts.
Within AM, multiple valuation areas exists, as an asset underly different rules, depending of it's accounting (book) value and tax value etc.
Therefore, we have one area (01) representing the book value, - which is also the GL-balance. In addition, AM keep another area (10) representing the tax value.
Finally, we have a third area representing the difference between Tax and book, (called 'delta'), and these values are posted to GL as 'more/less depreciation', enabling us to report both 'Accounting books' and 'Norwegian tax books'. This 'delta posting' is part of standard, monthly depreciation run.
We have a challenge in the case were we have USD as functional currency, in an entity registrated as Norwegian a/s.
Norwegian tax authorities require the tax values of the depreciation to be based on historical NOK-investments. Both FI-GL and FI-AA support the parallel currency
accounting, but not when it comes to the handling of the 'delta-values'. In this case, the initial investments are kept in histotical NOK in AM, and in AM the NOK-investment is depreciatied in the tax area. However, when the delta-posting is done, this is done in USD only (based on area 01 and 10), and the parallel NOK-value of this transaction is translated based on exchange rate on transaction date, NOT the historical NOK-value. The consequense of this is that the tax-books in NOK is incorrect, and there is a need to do manual adjustments, based on tiresome spreadsheet calculations.
Now: is this the only way SAP handles parallel currencies in AA/AM? No way to configure it to use historical exchange rates at all?
If this cannot be changed within SAP, has anyone else solved this kind of problem and might help me getting started?

Hello!
Does someone have answers to this:
From SAP Help:
The central procurement and processing of data for an asset takes place
in the logical database ADA in the FI-AA component. One of the functions
that is carried out in the database is currency translation. Currency
translation for a currency that is different from the company code
currency is carried out according to a translation method that you
define in FI-AA Customizing.
Where do i find this customising?
If the parameters of this standard translation method do not meet your
needs, you can define your own individual translation method using this
SAP enhancement.
Activities
Follow the procedure outlined below:
<b>
1. Activate enhancement project AMGS_001.
2. Modify function module EXIT_SAPLAMGS_001. Enter your own code in the
    included program ZXBADU03.
    When the enhancement project is active, the system uses the function
     module at the corresponding positions in the logical database.
3. Define a translation method in FI-AA Customizing (Information
      System) that uses translation date 3 (own translation).
</b>
Parameters
The following transfer parameters are available for function module
EXIT_SAPLAMGS_001:
o   I_AMOUNT (amount in local currency)
o   I_ANLAV (master data for the asset)
o   I_AFABER (depreciation area)
o   I_BERDATUM (report date)
o   I_UMVAR (translation method)
The translated amount is expected as a return value in the field
E_AMOUNT. This value is then transferred to the respective report.
This looks promissing But has anyone tried this exit, EXIT_SAPLAMGS_001?
Will it work for me?
-Helge-

Ledger concept in SAP-FICO

Hi
How many ledgers are there in SAP - FICO. How to view them?
Regards
Odaiah Pelley

Dear Odaiah Pelley,
Here the infirmation about Ledgers of FICO and also settings of ledgers.
In General Ledger Accounting , you can use several Ledgers in parallel. This allows you to produce financial statements according to different accounting principles. A ledger uses several dimensions from the totals table it is based upon. When defining Ledgers , one must be defined as the Leading Ledger . The Leading Ledger is based on the same accounting principles as that of the consolidated financial statements. It is integrated with all subsidiary ledgers and is updated in all company codes. This means that it is automatically assigned to all company codes. In each company code, the Leading Ledger receives exactly the same settings that apply to that company code : the currencies, the fiscal year variant and posting period variant .
You must designate one of your ledgers as the Leading Ledger. It is not possible to designate more than one ledger as the leading ledger.
The menu path is :
SAP Customizing IMG -
Financial Accounting ( New ) -
Financial Accounting Basic Settings (New) -
Ledgers -
Ledger -
Define Ledgers for General Ledger Accounting
Clicking on the checkbox identifies one of your ledgers as the Leading Ledger.
Activation of Non Leading Ledgers
Non Leading Ledgers are parallel ledgers to the Leading Ledger . They can be based on local accounting principle, for example. You have to activate a non- Leading Ledger for individual company codes. Non- Leading Ledgers can have different fiscal year variants and posting period variants per company code to the Leading Ledger of this company code.
The menu path is :
SAP Customizing IMG -
Financial Accounting ( New ) -
Financial Accounting Basic Settings (New) -
Ledgers -
Ledger -
Define and Activate Non Leading Ledgers
In New G/L which is part of ECC5.0 and ECC6.0 you will find the concept of Leading & Non Leading Ledger. Assume you are creating two company code one in India and other one in USA.
Following data is given below to support the discussions about Leading Ledger and Non Lading Ledger. The XYZ Co is head quartered at Delhi and its branch is there in USA.
Indian Co. :XYZ,India
Currency: INR
FY: Apr to March
USA Company:XYZ,USA
Currency: USD
FY: Jan to Dec
Requirement: 1.Your client require a consolidation of accounts in INR for XYZ group.
2. The Us company i.e. XYZ ,USA require to file the accounts with the legal authority which is required to be prepared for a period Jan to Dec with currency as USD.
Your 1st requirement will be fulfilled by Leading ledger which is a standard ledger defined by SAP at client level and applicable to all the company code under that client.
Your 2nd requirement will be complied by using Non leading ledger which you can define at company code level with alternate FY variant like in this case Jan to Dec.
Some Additional properties about Leading and Non Leading Ledger are given below.
 SAP provides Leading Ledger 0L and it is supported by standard table FAGLFLEXT which comes with the standard version of SAP ECC 5.0 and ECC 6.0
 Leading Ledger Manages addl. Currencies.
 FY variant & posting period variant assigned to Co Code is used by Leading ledger.
 Leading ledger is only one . Data in leading ledger only flows to Controlling
 In addition to Leading Ledger we can define Non Leading ledger. Non Leading Ledger can be assigned alternate currencies/Fiscal Year variant which differs from Leading Ledger.
Making Settings for Ledgers
Use
In General Ledger Accounting, you can use several parallel general ledgers. You do this to produce financial statements according to different accounting principles, for example. You create a ledger for each of the general ledgers you need. You must check the settings of your leading ledger even if you do not use parallel ledgers.
Procedure
You make the settings listed below in Customizing for Financial Accounting (new) under Financial Accounting Global Settings (New) ® Ledgers ® Ledgers.
       1.      Define Ledgers for General Ledger Accounting
Define your ledgers and designate one ledger as leading ledger (see also Ledgers).
When you create a ledger, the system automatically creates a ledger group with the same name.
       2.      Define Currencies of Leading Ledger
If necessary, define a second and third parallel currency for your leading ledger for each company code.
For more information, see Managing Parallel Currencies in Parallel Ledgers.
The following settings are optional:
       3.      Define and Activate Non-Leading Ledgers
If you use parallel ledgers, define your non-leading ledgers. If necessary, create alternative additional currencies or an alternative fiscal year variant.
       4.      Assign Scenarios and Customer Fields to Ledgers
Here you can assign the following to your ledgers:
¡        Scenarios
¡        Customer Fields
¡        Versions
In versions, you define general settings for the ledger that are fiscal year-dependent. You specify whether actual data is recorded, whether manual planning is allowed, and whether planning integration with Controlling is activated.
       5.      Activate Cost of Sales Accounting
Activate cost of sales accounting for your company codes if required. If you do this, the functional area is derived and updated for postings in these company codes. For information about the prerequisites for cost of sales accounting, see the documentation for this IMG activity.
       6.      Define Ledger Group
You can combine any number of ledgers in a ledger group. In this way, you simplify the tasks in the individual functions of General Ledger Accounting.
For more information, see Ledger Groups.
Result
You have made all of the settings required for your ledgers.
For parallel accounting, you can now assign an accounting principle to your ledgers.
Hope this helps you
Prem.

Purchase price variance line item - not to be posted in Parallel currency

Hi All,
Scenario:
Transaction currency - SGD
Local Currency - INR
Parallel Currency 1 (LC2) - Group currency - USD
Parallel Currency 2 (LC3) - Global Company currency - INR
Import PO - MIGO - MIRO
PO is raised in foreign currency.
Material master price control is maintained in 'S'.
While doing MIGO, I am getting following accounting entries:
Stock a/c Dr.
GR/IR a/c Cr.
Price variance* a/c Dr.
*The price varaince is because of difference in my material price as per material master and PO.
If I go and check in FBL3N, I can see all the line items in Transaction, Local currency and 2 Parallel currencies.
My query is, In SAP is it possible to avoid Price variance line item posting to Parallel currencies.
To my knowledge I know that it is not possible to avoid a single line to post it to Parallel currencies.
Thanks in advance.

This is the answer from OSS
Dear Customer,
the system works as designed.
When Material Ledger is activated, price differences are always
generated under the circumstances you have described. The reason is
that when material ledger is activated, price differences must not be
included into the stock changes value, otherwise the system would
not be able to calculate an actual price.
When Material Ledger is activated, the customizing setting
for handling price differences in the subcontracting process has no
effect.
Best regards,
Santiago Lorite
AGS Primary Support, Business Suite & Technology u2013 Logistics

Parallel currency in company code require material ledger activation

Hello,
I have a requirement where the company is using parallel currency in NEWGL concept with two different currencies INR and USD.
I want to have a clarification whether I Need to activate Material ledger with parallel currency.
1. Company is using parallel currency with only one legal valuation view.
2. There is no requirement for product costing in the company.
Can the balance in general ledger can be seen in both currency for inventory balances.
Awaiting for your inputs
Thanks

If you don't need parallel currency at present, there's no need to configure it. Why should that be a problem, as long as your Business needs are not relevant to using a parallel currency?
I suspect your actual query is details regarding the future problems that you might face when, faced by changed Business scenarios, you are forced to introduce parallel currency at a future date
If my suspicion is correct, I suggest you look at SAP Note 39919. It's an old note - but one that I've found contains quite relevant tips and tricks about introducing parallel currency in a productive environment.
Remember to assign points if found useful.
Regards,
Gulshan

Currency revaluation in Parallel Currency

Hi,
Having set up parallel currency (currency type 40) in FI and FI-AA. Local Currency is CNY; Parallel Currency is USD.
As soon as a time lag exists between two activities i.e. incurring costs in January - settlement and capitalize costs in March a different translation rate is applied to CNY/USD. Therefore a difference in USD incurrs.
Is there a way to revaluate parallel currency differences within standard SAP?
Is there a way to post clear this difference manually in the parallel ledger in USD without influencing the main ledger in CNY?
Technical infos: SAP ECC 6.0 without new G/L

Hi,
first of all, you cannot avoid this differences, but this is completely OK.
Of course you can revaluate in currency type 40. The posting would be then like this:
(original account to be revaluated vs. P/L gain/loss account):
Amount in doc.currency = 0 xxx
Amount in company code currency (CT 10) = 0 CNY
Amount in hard currency (CT40) = xxx USD.
So only the items / balances in CT40 are changed, no impact on CNY.
HOw to achieve this: either you run F.05 (SAPF100) for currency type 40 (recommended) or you post manually in F-05, this transaction allows you to enter the value of 0 in any amount field (at least 1 amount, in this case, CT40 USD amount, must be of course greater than zero) without converting the doc.currency and/or local currency amounts immediately.
Hope that helps, points welcome
Csaba

Activation of Parallel currency while upgradation of ECC6.0

Hi Experts,
We are useing SAP 4.7E Version along with IS OIL . SAP went Live on 01.04.2006 . Company code currency is INR . *We have not activated Parallel Currencies i.e Hard Currency or Indexed Currency .*
1. Is it possible activation of parallel currency while upgradation to ECC6.0
2. If activated , what are the complications of clearing the Past documents
Best Regards,
Lakshman

Dear,
Use transaction OY01, where going in to your country there is a field Hard Currency. Put currency here which you want it to be the hard currency.
This is customizing object which will not allow you to make changes in production instance as NO CHANGES ALLOWED is set for the client in SCC4. Better do this in development and transport it to production.
Regards,
Chintan Joshi.

Parallel Currency de-activation in OB22

Hello :
We have a few company codes which have been activated for parallel currency in OB22. Documents have been posted to these company codes via a batch input program as these company codes are not yet on SAP
Later we realised that parallel currencies were not needed for these company codes. We want to de-activate parallel currency postings for these company codes. Are there any steps or procedue to be followed to accomplish this task ?
Any insight would be highly appreciated.
Regards,
Jay

Paralle ledger activation in the middle of the year is very dangerous for the previously posted open items.
At the time of clearing system try to post the entries in the parallel ledgers. But parallel ledger not available in the previous postings.
It will result adverse results in most of the transactions.Please check and take necessary action

Parallel Currency per Company Code

Hello everybody,
Please, tell us which can be the problems of not configuring a parallel currency for a company code. By definition, we are not taking in account this configuration but we are afraid of the future problems.
Thanks in advance.
Fernando.

If you don't need parallel currency at present, there's no need to configure it. Why should that be a problem, as long as your Business needs are not relevant to using a parallel currency?
I suspect your actual query is details regarding the future problems that you might face when, faced by changed Business scenarios, you are forced to introduce parallel currency at a future date
If my suspicion is correct, I suggest you look at SAP Note 39919. It's an old note - but one that I've found contains quite relevant tips and tricks about introducing parallel currency in a productive environment.
Remember to assign points if found useful.
Regards,
Gulshan

Activate parallel currency in a company

I need to activate parallel currency in a company which is already in production. Anybody knows how to proceed??
thanks,
Cecilia

Hi,
Last year, I have worked on a similiar requirement. The requirement is to activate the group currency as the second currency in the system for a company which is already in the production environment. We have done quite detailed analysis to do it. Our plan was:
At one point of time before we bring the new configuration for parallel currency into production environment, temporarily make the balance of all accounts (open item, non open item) ZERO, then clear the open items, transport the configuration of parallel currency and bring back the account balances with not only at local currency level but also at group currency level. The company subject to change was a medium sized company and they agreed to only see the balances after the conversion. We shared our plan with SAP to understand if they would give support to usin any case if we face with a problem. Then they told us that that type of conversions can only be done by a special consulting team within SAP AG itself. Any change done and caused a problem in the production environment will not be supported by SAP.
As a result, instead of getting this special consultancy, we have decided to create a new company code with parallel currency activated and make it live at the beginning of the fiscal year and transfer the opening balances to the new company code.
You can contact with SAP to get more information about their conversion for a live company code. But my advise is it is not that much easy to activate this functionality when you are live. So be careful, take your time, share the company detail (which modules are in production, what is the volume of data vs.) with SAP and get their feedback.
Good luck.
Aysegul Gumus

Exchange rates with two parallel currencies

Hi all,
I need to manage a company with two parallel currencies (USD and PKR). To post a document in USD it's necessary to define in TCURR an exchange rate FROM USD to PKR, and to post a document in PKR it's necessary to have an entry FROM PKR to USD.
Obviously the second exchange rate has to be the multiplicative inverse of the first one.
For this reason, to avoid redundant and possibly wrong entries, is it possible to manage only one exchange rate in TCURR (for example FROM USD to PKR) instead of two? How?
Thanks for your attention

Go to SAP Netweaver> General Settings> Currencies and manipulate the following and you should be able to maintain only one set of exchange rates.
i) go to Check Exchange Rate Type - and manipulate the exchange rate type you are using (Check Financial Accounting Basic settings> Ledgers> Define Currencies for Leading Ledger to check the exchange rate type used for each company code - generally M is used) and assign Reference Currency "Ref.crcy" (for example we use USD) for that exchange rate type.
ii) go to Define Stnadrd Quotation for Exchange Rates and maintain - Forexample we use "Blank" to "USD", so that we just have to maintain Other currencies to USD (ref.crcy) and in In-direct Quotation.
These setting would give you the ability to maintain just "Other Currencies" to "USD" in in-direct quotaion. Use this example to decide which currency you want to use as reference currency and then maintain accordingly.
Hope this helps.

*Depreciation reversal with conversion in Parallel Currency Dep Area*

When we creat depreciation run in version 4.6c (RABUCH00) the program performs a batch session and post depreciation entry in Company Code currency -in our case-(GBP) and parallel currency (USD) as, entry should be
posting key GL A/c                        GBP USD
75              Accumulated Depn A/c   76GBP    38USD
40              Depreciation Exp A/c      -76GBP   -38USD
entry is posted in other depreciation area (which is opted for posting) in dep area currency USD.
We are observing a issue where the entry for a particular
asset is actually posted as
posting key GL A/c                        GBP USD
70              Accumulated Depn A/c   76GBP     1USD
75              Accumulated Depn A/c -38GBP   -1USD
50              Depreciation Exp A/c     -76GBP   -1USD
40              Depreciation Exp A/c      38GBP     1USD
hence my query is
1. Why for a particular asset amounts are getting reversed.
2. Why these amounts are not converted in parallel currencies when we change GL layout of parallel currency.
SAP OSS Note No. 0000733192 RABUCH00 and parallel currencies with value 0 has relevant documentation on this topic but it fails to explain why this happens in particular asset.Can you provide any explanation ? Thanks.

Hi Hui Bin Liu,
How did you solve this?
I have that same issue right now and can't figure how to solve it.

Parallel Currencies

I need to know if we will need to configure The Parallel Currencies. I've never used them but I believe the answer is "Yes", as we'll need a Group Currency for reporting in consolidated USD, as well as a local foreign currency. Can you provide some guidance?

Hello Swathi
Currency is very complex matter in SAP, hence do not play with it. As such to make it simple use as under:
1) 1st Local currency = Company Code currency (Currency code 10) in India INR
2) 2nd Local currency = Group Currency (Currency code 30) usually USD
Needless to mention both of them would you legal valuation.
Hope this clarifies the currency.
Should you need any other information, write with full but relevant details.
Ambadas

Setting Up Parallel Currency

Hi SAP Expert,
We have issue with post implementation in regards to parallel currency.
We created Singapore Co-Code with USD currency and all the transaction happens in SGD (Singapore Dollar). The reason behind this setup is we have all our liabilities in USD and we wanted to avoid any FX gain or loss hitting our P&L.
Now the client wanted to view both currencies report and transactions. e.g. USD and SGD.
FYI the 1st local currency was setup as Co-code currency (10) which is USD and 2nd local currency was setup as (30) Group currency which is USD too.
Which will be the best way to handle or setup the SGD currency? We have activated Flex-GL in our ECC 6.0. Can we handle this through flex gl?
Any suggestions and guide?
Mano

Hi Perumal,
Is the transaction currency always SGD or will it include other currencies as well?
If you dont have any other transaction currency other than SGD. Then you can always create a custom report to give the details in both currencies.
If you have transaction currencies other than SGD then there is no way you will be in position see the details in both the currencies,unless you convert the USD balances to SGD based on business rules which is really very complicated .
We have situations similar to you , but handle the same by creating a custom report in transaction currency.
Hope this helps.
The best way is to define SGD as local currency and USD as Group currency how ever you indicated teh client dont want to do it that way. If the client dont want to do thing in a staright way then custome report is the only way.
Sekar

Copy parallel currency depreciation area

Hi Gurus,
We are migrating to New GL. As a part of this, I am creating 4 new depreciation areas (one for LC1 in non-leading ledger - 61, One for LC2 (GC) in non-leading ledger - 71 and the other two for delta between 01 - 61, and 31-71). I have marked 71 depreciation area as identical and adopting values from 61. I want to copy the values from the existing group currency depreciation area(31) into 71 as I want 71 to be a replica of 31 and I do not want the system to again convert the LC1 into GC using historical rates and I want to avoid writing an LSMW as they are lots of assets. Can someone advice how I can copy over dep area 31 to 71 using AFBN. System does not allow 71 to reference 31 in OABC for take over of same values. Thanks.

Hi,
For a correct and simple parallel valuation scenario, please review SAP Note 1433535 which provides the necessary instruction how to create a ledger scenario, including parallel currency areas.
(For posting indicators and their meaning you can check KBA 1572318).
Please verify in your system and take into account the following information regarding ledger scenario logic: also, please refer to the standard ledger scenario logic documentation.
In short, this is a basic configuration of depreciation areas and posting indicators in asset transaction OADB:
                                         Posting to G/L         Ledger
Area 01 HGB                    1                             0L
Area XX IAS                     3                             1L (your ledger code)
Area YY (IAS - HGB)        6                             1L (your ledger code)
Same setup is valid for the other ledgers that you may have.
You should also beware that according to the ledger scenario logic: Acquisiton/transfer/retirement postings in area 01 go to ALL ledgers, independently of the setting in OADB (this is not an error).
The difference is posted through the derived area.
Here I list again the 3 most relevant SAP Notes listed in regard to creating a ledger scenario:
1433535    Parallel valuation: Ledger approach
1594311    Duplicate posting in non-leading ledger when APC tr
1572318    Meaning of field "Posting in G/L" in transaction OADB
Hope this helps you.
Best regards,
Brigitte

SAP FICO-parallel currencies

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