TPM18/EBS for Foreign Exchange producty

Dear All,
I have an issue with fx product type, initially realized gain or loss was calculated from EBs upload meaning that
the flag Trans to LC was ticked in the forex attributes for this product. Since reconciling from EBS was very
time consuming, we now decided to use a new product which will generate profit or loss with TPM18.
Issue:
We use daily rates,so basically when we have a contract with contract date 25.05.2011 value date say 01.06.2011,
we usually run TBB1 on 30.05.2011, at this point TBB1 posts the flows with the rate available on 30.05.2011.
So now I run TPM18 the system partially posts a loss here and the rest is posted from EBS upload.
The main problem here is that the OBA1 config goes to different GL account and TPM18 goes to a different GL account.
resulting in two different entries for the same contract to two different gl accounts.
How can I get TPM18 to get the whole valuation done and prevent EBS from posting any realized gain or loss?
Thanks in advance for your advice
Rgds
SG

Hi,
Thanks for your reply, well if is a know issue then...very unfortunate, but ofcourse since business goes on as usual, I am forced to find a work around here. I will look into the EPH5 though
Anyway just want demonstrate my scenario here,
For instance I get into a forward contract with the Bank on 25.05.2011 until 28.05.2011 (I m not going to use any forward points, in order to keep it really simple)
, say BUY 1000 EUR : SELL 1400 USD,T and the rate is 1.38 on 28.05.2011. But when I post TBB1 say on the 26th in order to prepare the payments two days in advance the rate is 1.35 therefore this is my Journal entry.
For USD : Dt FX A/C, Cr. Tr clrng A/C 1400 USD
For EUR : Dt Bank trn A/C, Cr. FX A/C 1000 EUR -> 1350 USD
So now when I upload my bank statement on the 29th (for value date 28th where the rate in TCURR is 1.38)
For EUR: Cr Bank Tr A/C, Dt Bank A/C 1000 EUR -> 1380
Clearing Reval is USD 30 (which is posted to P/L)
now when I run TPM18 at month end, the rest of the difference is posted. Well my issue was that I wanted all the revaluation to be done via TPM18 and nothing from EBS, but obviously looking at the way our exchange rates are maintained, this was not feasible.
End of the day, I solved this issue using a work around.
Thank you all for your replies
Regards
Sharath

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In   ( 3)   the   posting   create   posting in   the customer for whom the forex is to be issued.
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I    have to   pay the customer   in   CURRENCY NOTES and NOT   by CHECK    in foreign currency.   The automatic payment program has payment methods viz check, wire transfer.     How do I   issue   CURRENCY NOTES    or TRAVELLERS CHECK .
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Hi,
I am not sure this is a right solution. But I have some inputs on your requirements:
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Per my knowledge we have never used payment method cash (currency notes) in APP. But logically it would work by create a new payment method and doing the required config for APP.
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thanks & regards,
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Reversal post for Foreign exchange revaluation

Hi All,
We are running FAGL_FC_VAL periodically.
Every month posting for Exchange differences is done with document Type u201CSFu201D (in valuation area u2013 we assigned valuation method u2013 for which we declared u201CSFu201D as doc. Type)
And at the same time, it is also posting a reversal entry on the first day of next month ( we are using check box u201CReverse postingu201D in FAGL_FC_VAL and giving the posting date )
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Thanks,
Pavan.

Hi,
Thanks for your message.
But, we are facing problem to a particular company code and not to all.
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Foreign Exchange accounting in TRM

Dear Experts,
To give you brief intro, i am a finance person and user of SAP Treasury module. my knowledge of the module is of user level and not of functional or technical level.
i need your help on my below query.
for foreign exchange trades (60A), what should be the right accounting practice thru TRM (1) at time of of entering into deal (2) at time of maturity of transaction and also at time of (3) pre mature or part settlement of the transactions.
currently, i do not post any entry at time of creating 60A/102 deal.
at time of maturity, i does cash settlement in deal, put the cancellation rate, date of cancellation in date box to generate gain / loss and post the same (only cash settlement entry) thru TBB1
in case of part or early utilization or forward contract, i does the pre mature settlement from ftr_edit and copy paste 102 deal details in 105 and 103 deals including contract date and value date except for amount. thereafter, i settle both deals and cash settle 105 deal with cancellation rate and transaction date in date box to generate gain / loss. this gain / loss is posted thru TBB1. in this case, when i have taken early delivery, i have to add or subtract swap points in final rate to arrive at correct rate. also, i have to to cash settle 102 and all 103 deals when there's final amount settlement whether on due date or before it.
in my case, buy sale position of two currencies are shown in cashflow tab as "not rel. for posting" and is not posting even on maturity.
i know i have given bit lengthy details but i really wants to understand
1. is above practice of recording fx transaction is correct?
2. is there any better way to capture early deliveries?
3. in case of early delivery, is it right & necessary to replicate 102 deal details in 105 and 103?
4. what is role of TPM18 which i am not using at all in above scheme of fx set up?
your valuable reply will be of great help to me.
Thanking you all in advance
Kapil

Hello Kapil,
Your questions has covered most of FX process.
I'll try to answer few of your question.
Answer 1) The process is correct, Its based on what your company required consultant has customized the system in that fashion, As you said there is not posting even during maturity of deals, that because in customization setting is missing for posting. Incase its required please consult you consultant to make the changes in system for Flow type-(here relevant for posting is unchecked).
Answer 2 & 3, I'm not sure why consultant has suggested to use such a lengthy process to settle early deliver deal, There might be some reason for the same. Please check,
But the same process can also be addressed, throught FTR_edit and settle the single deal through cash settlement.
Also note, 103 is only used for netting which means you are trying to settle couple of deal together and that can be excluded if you have only single deal.
Answer 4) TPM18 is used to do the valuation after the deal has been closed.Realized gains and losses are determined according to single valuation of transactions principle. This is calculated by taking the difference between the forward rate based on the conclusion of the contract and the posted rate on value date.
Let me know in case you need more information.
Regards,
Jaiin

GR/IR clearing - Foreign Exchange Loss

Hi Sap Gurus,
My Company code currency is u201CCADu201D and my Group Currency is u201CUSDu201D. I have maintained GR/IR clearing account as u201Conly balances in local currencyu201D
I have done GR in 2008 for 100 CAD. And I have reversed this GR in 2010.
When I am doing the automatic clearing of GR/IR: System is posting an entry of Revaluation loss (from KDF trans type) DR To GR/IR clearing a/c (for 0 CAD and in GL view it is 129 USD)
BSEG table has been updated only with zero but in FLAGLFLEXA I could see 129 USD updated in grup currency .
My question is u2013
1.) why the system is looking for KDF currency when I have maintained u201COnly balance in local currencyu201D for GR/IR clearing account u2013 is that because I have maintained this GR/IR clearing account in OBA1 i.e. for foreign exchange revaluation ?
2.) If it so, does the OBA1 setting overrides the u201COnly balance in currencyu201D in GL master ?
3.) As this is just a clearing transaction, Is it acceptable to book a FX loss on this transaction ? and that to it is just a reversal of an erroneous entry.

Hi Pavan,
You have maintained this account in OBA1 for KDF, that is why it is showing forex differences. The difference is in Group currency currency and not in your company code currency.
So, no problem.
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Murali. N

Foreign exchange gain and loss

Short Text
Foreign Exch Gain / Loss to be booked to a diffr cost center
Long Text
The transaction booked with the following parameters
Step 1:-Transaction booked trough FB60
Foreign currency CHF @ 40/ruppee
Expenses debited (1000-cost center)
Vendor Credited
Step 2:-Transaction paid through F-53
Foreign currency CHF @ 50/ruppee paid
Vendor Debited (Clearing the open item)
Bank outgoing account Credited
Foriegn exchange gain and loss Debited
In ECC 6.00 Version:- The open item clearing inherits the CO objects
from step one except for "Foreign exchange agin and loss line item"
Note:
1) In above scnerio, if foreign exchange gain and loss booked to some
other cost center other than Step one:- Cost Center (Expenses booked).
2) If the foreign exchange gain and loss line item booked to same cost
center as specified in Step one:- Cost Center (Expenses booked).The
below error does not occur.
3) The requirement is to book different cost center for the Foreign
exchange gain and loss line item.
The following error occurs during FB05 transaction execution for
transfering the line item in Bank outgoing account to Bank Main account.
Error Details occur during FB05 transaction execution:-
Start----
Ex.rate diff.accts are incomplete for account 0002500062 currency CHF
Message no. F5063
Diagnosis
The accounts for posting exchange rate differences could not be
determined. For the specified G/L account and the specified
currency
key, the accounts are only specified incompletely. Either the
accounts
for the implemented exchange rate difference, the accounts for the
valuation differences or the balance sheet adjustment account are
missing.
System Response
The system cannot generate the exchange rate difference posting.
Procedure
By pressing ENTER, you achieve that the document is reset to a
status
without automatic posting. In another window, you can complete
default
settings for exchange rate differences and post the document
afterwards.
END----
Configuration already in place:-
1) Bank outgoing and main account "ONLY BALANCE IN LOCAL CURRENCY" is a
ticked
2) In OBA1 Foreign exchange gain and loss and valuation gain and loss
GL's are defined for respective Reconciliation account.
Regards,
Sathya

Hi,
Is your problem solved, I am also facing the same issue when transffering from Incoming/Outgoing to Main Bank Account. Exchange gain/loss is being calculated by the system.
Please share with me the solution to the above problem.
Thanks & Regards,
Jyoti

Ware house and foreign exchange

Hi..,
Sd gurus . I am really in need of WARE HOUSE MANAGEMENT with end to end process. IO really dont know what is this end to end process in ware house .And i am working for one client So i am bound to wprk even for FOREIGN EXCHANGE in future But i am not getting the material for both the material ware house as well as foreign exchange . So.., i am really really in need of this two topics. Could any body help me on this topics.
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Rams.

Hi Ramu,
Please Find Complete Notes on Foreign Trade and Ware House Management below:
FOREIGN TRADE:
Listed below are the areas of Customizing you need to check to ensure you have fully maintained the foreign trade master data, check objects, and proposal objects. Because the systems defaults depend on settings in Customizing, the more fully you maintain this data, the more complete the data in the purchasing and sales documents will be, and the more efficient the system will be to use.
You can access the Implementation Guide (IMG) to customize your area of interest via your project from the SAP standard menu by choosing Tools ® AcceleratedSAP ® Customizing ® Edit Project. In the IMG for R/3 Customizing, make entries in the appropriate items in the checklist below to ensure that the Foreign Trade application component is prepared for use.
Checklist
This checklist applies to configuring objects for both inward and outward processing.
Number range
Sales and Distribution ® Foreign Trade/Customs ® Define Number Ranges
Commodity codes and import code numbers
Sales and Distribution ® Foreign Trade/Customs ® Basic Data for Foreign Trade ® Define Commodity Codes/Import Code Numbers by Country
Procedure
Definition
Sales and Distribution ® Foreign Trade/Customs ® Basic Data for Foreign Trade ® Define Procedures and Default Value ® Define Procedure
Sales and Distribution (SD) default value
Sales and Distribution ® Foreign Trade/Customs ® Basic Data for Foreign Trade ® Define Procedures and Default Value ® Define Procedure Default
Materials Management (MM) default value
You maintain this value in the purchasing info record on the Purch. org. data 1 (Purchasing organization data 1) screen (see Foreign Trade Data in Master Records).
Business transaction type
Definition
Sales and Distribution ® Foreign Trade/Customs ® Basic Data for Foreign Trade ® Define Business Transaction Types and Default Value ® Define Business Types
SD default value
Sales and Distribution ® Foreign Trade/Customs ® Basic Data for Foreign Trade ® Define Procedures and Default Value ® Define Default Business Type (SD)
MM default value
Sales and Distribution ® Foreign trade ® Basic data for foreign trade ® Define business transaction types and default value ® Define default business transaction type (MM) (Table T604)
Mode of transport
Definition
Sales and Distribution ® Foreign Trade/Customs ® Transportation Ddata ® Define Modes of Transport
MM default value
Maintained in the vendor master on the Purchasing data screen (see Foreign Trade Data in Master Records)
Customs offices
Definition
Sales and Distribution ® Foreign trade ® Transportation Data ® Define Customs Offices
MM default value
Maintained in the vendor master on the Purchasing data screen (see Foreign Trade Data in Master Records)
Control of import data screens
Sales and Distribution ® Foreign Trade/Customs ® Control Foreign Trade Data in MM and SD Documents ® Import Screens in Purchasing Document
Countries
General Settings ® Set Countries ® Define Countries
Currencies
General Settings ® Currencies ® Enter Exchange Rates
WAREHOUSE MANAGEMENT (WM):
Full Warehouse Management - http://help.sap.com/bp_bblibrary/500/html/A08_FullVMAuto_EN_IN.htm
Lean Warehouse Management - http://help.sap.com/bp_bblibrary/500/html/A09_DILeanWM_EN_IN.htm
http://help.sap.com/printdocu/core/Print46c/en/data/pdf/LEWM/MMWM.pdf
http://help.sap.com/printdocu/core/Print46c/en/data/pdf/MMWMLVS/MMWMLVS.pdf
Please Reward If Really Helpful,
Thanks and Regards,
Sateesh.Kandula

Report for Unrealized/Realized Foreign Exchange Payments and Receipts

Is there a report in SAP that shows unrealized/realized foreign exchange cash receipts and payments. if yes, what is that report. Please provide transaction code.
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Lakshmi

Hi Lakshmi,
I can try to explain this financial funda more claraly as below:-
Realized Exchnage rate Diffrence Gain/ Loss:-
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UnRealized Exchnage rate Diffrence Gain/ Loss:-
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         Taking the scenario above, if you do not pay on 16th jan and invoice remains open. You run the F.05 at month end to revaluate the open items and on 31st Jan, the exchange rate came down at 48 INR per USD. Then F.05 will show the unrealized gain of 200 INR (100 USD * (50-48)).
I hope that this clarifies the things. if yes, please assign some points.
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Gaurav

Valuation of foreign exchange forward with NPV split for interest vs FX impact?

Hello,
I have the following business requirement regarding the accounting treatment of the valuation of a foreign exchange forward deal :
1. during the lifetime of the deal
step1. valuation
          the deal should valued at its NPV using the swap points curve (table AT15) => that gives the "VALUE"
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step 2. the posting of the deal's value should be SPLIT into TWO components
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Comment.
So, in fact it is some hybrid combination of the two SAP standard valuation methods
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Best regards,
Carl

Hi Carl,
In order to use the 2step valuation during the lifetime of forex contracts, you need to combine 2 valuation steps in your Position Management Procedure:
1. step 6 Rate valuation for forward exchange transactions: spot-spot
2. step 4 Security valuation
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Best regards,
Piotr

What's the Foreign exchange for KSPI

Hello Gurus
we are using local currency but we also usd, my question is what date is the foreign exchange,,,is it current or average for the month?

hi,
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Anyone help? I click on buttons within websites and my mac opens new webpages advertising, mac keeper pro or some foreign exchange trading platform. Did i pick something hop in a download? how do i search for and get rid of this annoying infiltration?

You've installed some form of adware. Take a look here: http://www.thesafemac.com/arg/

We live in USA and wish to purchase a Macbook Pro computer for our foreign exchange daughter, who has returned to Guatemala. is it better to buy it here and hand carry or wait and buy it there? we want to get her warranty and repair benefits

we live in Californina and will be travelling to Guatemala City next month to attend our Foreign Exchange Daughters graduation. We want to buy her a Macbook Pro as a gift and purchase the warranty/protection coverage for her. We are concerned she will not be entitled to any Apple Support/warranty by it being purchased in USA but using it and living in Guatemala.
It is better to wait and buy it from a retailer there in Guatemala?

Apple Care is global.

Hello,I'm trying to buy my MacBook pro, but since I am a foreign exchange student I need a international billing address, and I don't have this choose in the website. Someone know what to do?

Hello, I am a foreign exchange student and I'm trying to buy my macbook, but in the website don't have a choose for international billing address. Someone know what's to do?

An option is to call the Apple Store. Maybe these guys can help you.
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Foreign Exchange fluctuation rate is not showing in case of partial payment

Hi,
In case of foreign exchange collection from Customer through F-28 in partial payment "Exchange Rate Gain" or "Exchange Rate Loss" is not appearing in GL balance simulation or Customer balance report. Only in case of full payment from Customer then "Exchange Rate Gain" or "Exchange Rate Loss" is appearing in GL balance simulation. What is the reason ?
Regards,
Anindita

Hi
Even in the scenario described by you,
You can use both residual and partial payments
here is what would happen for partial /residual payment after you post the payment.
Partial payment
open items
Debit USD 500
Credit USD 200
No cleared items
Residual Payment
open items
Debit USD 300
cleared items
Debit USD 500
Credit USD 200
Credit USD 300
Regards
Sach!n

Foreign exchange reporting : how to include Inhouse Cash Accounts correctly

Hello,
I want to report the foreign exchange risk position of a mother company (euro based) which is also hosting the inhouse cash center. This means that the foreign currency balances held by the affiliates with the IHC are part of the fx exposure of the mother company. For example, a polish affiliate that has a PLN balance of 1 mio PLN (in favour of the affiliate) means a FX SHORT position for the mother company.
In AISFSS or FTR_DEALPOS you can include Cash Management information. But it makes no sense to include the IHC accounts of the affiliates in the exposure report of the mother company, because the direction of the exposure of the affiliate account is the opposite of the mother company's exposure. i don't want to reprogram CM to inverse the sign.
So, then I thought, ok let' s include the receivables/payables accounts 416xxxx and 439xxx that centralize (via F9HL + F9HI ) the affiliates balances in the FI ledger of the mother company. Unfortunately, these two accounts are not managed in open line item mode. Accountting department does not accept that we cahnge that setting.t The consequence of that being that in the CM grouping I get the countervalue in euro instead of the balances in the respective foreign currencies.
Instead of having the IHC balances aggregated in one Accounts Receivable and one Accounts Payable account, Accounting department would agree to have one G/L account per trading partner/ currency, which would be a perfect reflection of a single IHC account.
I had been told that there would be a T-code (in SAP Inhouse Cash) that allows you to re-split in FI the affiliate balances per currency/trading partner. If this works, then I can pick the currency balances up in original currency via CM grouping.
Does anyone know about this T-code (to split), does anyone have documentation or does anyone have an alternative solution (no ABAP programming).
Thanks a lot for your help.
Carl

Hi,
Yes you can use this report IHC_TOOL_TRAPO (Note number 750700) and do the necessary settings in the corresponding custimizing table. Though I am not sure why you want a separate valuation according to different trading partners. Are they posting to different G/L accounts for different TPs for the account in same currency?
Anyway, you can maintain the setting only for those affialiates having accounts in foreign currency. Also I guess it should be enough if you maintain only for final postings account and not for intermediate postings (provisional) in case if you are having 2 accounts. You can also check in the customizing node mentioned in the previous post - you can use the additional key field and use a custom coding in case if you feel the report is not going to be suffecient.
Regards,
Ravi
Edited by: Ravishankar Ramamurthy on Jan 21, 2011 5:00 PM

TPM18/EBS for Foreign Exchange producty

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