Unrealized Gain/loss from exchange rate

Hi all,
Please i need help , exchange rate fixed is checked in PO ,at the point of MIGO system use exchange rate in PO.When i check Accounting document in MIGO system Debit Stock account and Credit GR/IR account using exchange rate in PO ,but the difference of exchange rate in PO and system exchange rate, Debit Price diff. clearing account and Credit unrealized Gain/loss from exchange rate account ,I need to know if the posting is correct.Thanks. The Accounting Document was displayed as follows:
Stock account was Debited
GR/IR account was Credited
Price difference clearing account was Credited
Unrealized Gain/loss from exchange rate account was Debited

Yes the account postings are correct if you are using a Std price control on the material master.

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How to post gain/loss on exchange rate from Money Market

Dear Sap Expert,
     I need your kindly help about posting gain/loss in Treasury with money market type.
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Date                   Flow Type     Name                       Amouunt      currency     Exchange rate         Amt.Local currency
19.10.2011         1105             Borrowing               10,000            USD               30.00                       300,000
30.10.2011         1120             Final repayment       10,000            USD               30.00                      300,000
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    On 30.10.2011 I use T-code TBB1 to post the Payment transaction but the gain/loss account does not happen.
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Thank you very much for your suggestion.
PK

Hi,
your customizing for Derived Business Transactions requires DBT_B flows in your PMP in order to post realized gains/losses.
Regards,
Lorenz

R12: Unrealized Gain/Loss Report cutoff

The Unrealized Gain/Loss Report will report on all open AP Invoices.
For cut-off purposes we require the report to 'cut-off' at period end:
The report should list all open invoices as of a specific accounting date, regardless if the invoice is paid when the report is submitted. It should not report any invoices with an accounting date greater than the specified accounting date.
I submitted this issue to Oracle as an enhancement request, but was wondering if anyone has a solution in the meantime, or if others would like to help push the enhancement along.

We are going with this select statement:
And then take the difference of the invoice amount * the 2 exchange rates
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 s.vendor_name,
b.invoice_num,
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 custom.coop_ap_pkg.getexchangerate(dteCutOff,'USD','CAD') cur_exch_rate
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-- b.payment_status_flag IN ('N') AND
nvl(b.cancelled_date,'30-Jan-2099') > dteCutOff
and
b.invoice_amount > (SELECT nvl(SUM(amount),0) FROM ap.ap_invoice_payments_all a
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a.accounting_date <= dteCutOff)
ORDER BY s.segment1,b.invoice_num ;

Compute Unrealized Gain/Loss and Provisions for Valuated Forex Contract

Hi Everyone,
Can anyone tell me how unrealized gain/loss or provisions were computed for forex contract?
I created a spot/forward transaction with the following details:
Product Type: 60A
Transaction Type: 102
Buy Currency: USD
Sell Currency: NZD
Local Currency: SGD
Forward Rate: 0.6864
Spot Rate: 0.7045
Swap Rate: 0.199-
I used midyear valuation w/ reset as a valuation category when I execute valuation in TPM1.
Your response would be greatly appreciated.
Thank you.
Canto

Hi Murlidhar,
Thank you for the response. Yes, I understand that a gain/loss can be realized based on exchange rate differences between when invoice entered/posted and when paid. That's only part of the gain/loss in minds of the accountants. The other part is gain/loss from time that cash was put into bank account. For example, we spend $100 USD to purchase and deposit R$167 BRL into Brazil bank account. Three months later that same R$167 BRL is worth only $85 USD. At that time we post and pay Brazil invoice on same day in amount of R$167 with no exchange gain/loss on the invoice. System posts credits of R$167 BRL and $85 USD to bank account G/L account. System does not record gain/loss on payment because invoice currency translation date and paid date are same. However, the bank account G/L account balance now reflects R$0 BRL and $15 USD on which system calculates a $15 USD unrealized gain/loss at month end. This unrealized gain/loss on the bank G/L account posts and reverses each month just as you said but never goes away. In minds of accountants the $15 USD gain/loss should be recognized. How best to recognize the $15 USD gain/loss, that is the question.
Thanks
Steve

Incorrect value of Auto. Gain Loss Foreign Exchange during GR/IR clearing

Dear Experts,
We have activated the Material Ledger functionality.
The Document Currency of PO, GR, and IR are in Foreign Currency.
The postings are below:
Loc Currency 1 = USD
Loc Currency 3 = IDR
Doc currency = IDR
GR
Dr Material               52,980,975 Doc Curr/IDR          5,340.80 Loc Curr 1/USD
Cr AP u2013 GRIR              -75,000,000 Doc. Curr./IDR        -7,560.45 Loc Curr 1/USD
Dr Price Adjustment          22,019,025 Dor. Curr/IDR          2,219.65 Loc Curr 1/USD
IR
Dr AP u2013 GRIR          75,000,000 Doc. Curr./IDR          7,560.45 Loc Curr 1/USD
Cr AP-Vendor              -75,000,000 Doc. Curr./IDR        -7,537.73 Loc Curr 1/USD
Cr Forex AP- Current                               0 Doc. Curr./IDR             -22.72 Loc Curr 1/USD
GR/IR clearing
Loc Currency 1 = USD
Loc Currency 3 = IDR
Doc currency = USD
Dr AP u2013 GRIR          7,560.45 Doc Curr./USD      75,000,000 Loc. Curr. 3/IDR
Cr AP u2013 GRIR              -7,560.45 Doc Curr./USD      -75,000,000 Loc. Curr.3/IDR
Dr Forex AP- Current            0 Doc Curr./USD     1,360,469 Loc. Curr. 3/IDR
Cr   Forex AP- Current                 0 Doc Curr./USD     -1,360,469 Loc. Curr.3/IDR
The problem occured after GR/IR Clearing is performed. The system generated automatic Gain/Loss Foreign Exchange AP-Current with incorrect amount in Local Currency 3. That amount was not match with the delta exchange rate difference on the date of IR is performed and on the date of GR/IR Clearing is performed.
Can anyone inform me what is the probable cause of this incorrect Forex AP-Current calculation? What is the calculation basis that SAP system use to calculate this automatic Forex AP-Current?
Should you require any additional information, please let me know.
Thank you
Best regards,
Frans Sunarja

Hi
First once we have check the exchange rate types in OB08
second one you are no main the gain/loss a/c OB09 w are setting Loss/gain .
Regards
suresh

Gain/loss from discontinued operation

1.Once the consolidation Unit is full divested(100%), how the revenue after discontinued period will be accounted. Because the consolidation unit is fully disposed off to external group. If the earlier holding was having Minority Interest , do we have to provide the minority interest for income from discontinued operation.
2.Can the reclassification function can be used in this context.
3.How can we facilitate the report on income from discontinued operation. Can we maintain in the company/profit center the period in which divested so that we can know the generate the report for the income from discontinued operation with reference to the data of full divesture.

Here's my understanding of how the divestiture works.
Cons Group A
- Parent A
- Sub B
Parent A owns sub B starting in 2006. In 6/2007, Parent A divests Sub B.
In the GL, Parent A books a Gain/Loss from the sale of their company. In BCS, the system will calculate a gain/loss from divestiture as part of the total divestiture activity in the COI. If we have a gain of -10, BCS will book a loss as +10 @ PL30 in Cons Group A.
From an unconsolidated perspective, you are correctly showing the gain on the parents books. At a consolidated perspective, you are still showing the Jan - June income statement from the sub until the end of the year. BCS has offset the "unconsolidated gain" with a "consolidated loss" to prevent double counting the income.
At the end of the year, the parent's gain will roll forward into the prior year earnings. The "consolidated loss" would offset into retained earnings and go away. Now you only have the prior year gain sitting in the parents surplus on a go-forward basis.
Looking at the postings by BCS, I think it might help to have the divestiture gain & loss going to the same account in the COI config. An the Gain booked in the parent on an unconsolidated GL basis needs to go to this account as well for everything to offset cleanly.
That's what I see the system posting...let me know if I'm missing something...can't hurt to have more documentation here!
Chris

Cost elements for account Profit or loss on exchange rate valuation

I am running transaction F110 and among the invoices to be paid there are foreign denominated invoices. I have 4 business areas set up and have one GL account where all the gains and losses arising from the exchange rate fluctuation are posted (this account has been assigned a cost element).
When I run F110 i get error that the gain/loss on valuation account requires a CO object. I thot the system would be able to determine all the CO objects from the invoices selected for payment. In a payment run, there are a number of invoices belonging to different CO objects.
Is there a way i can get around this. If i delete the cost element will i be able to draw up financial satements per business area.

Hi,
You can set up in OKB9 for Co Object determination.
You can set Business Area as mandatory in OKB9 and then click on Detail per business Area and another screen will open up, there you can enter, Cost center against Business Areas.
This will resolve your issue.
Regards,
SAPFICO

Exchange Rate from Exchange Rate Table

Dear All,
Is there any way to make the system to take the exchange rate from the Exchange Rate table and not from the base document when we are "Copy To" functionality instead of "Copy From"?
I unchecked "Use Document Exchange Rate When Copying to Target Document" in Document Settings but the system still copies the exchange rate from the base document.
Regards,
Bharath S

Hi Bharath.....
Do the settings once again as you mentioned and just restart all the services of SAP and restart server also.
And then try whether it works or not.
Its wired but sometimes when we refresh the system the settings we made gets applied that moment only........
Please check.....
Regards,
Rahul

Exchange Rate in MIRO differs from exchange RATE in MIGO

Hello
We use the following procedure:
- Purchase Order currency = USD, goods-receipt-based invoice verification indicator is set in purchase order
- MIGO currency = USD (We have a lot of goods receipts with reference to the same purchase order position at diferent dates, and consequently to different exchange rates).
-MIRO currency = CLP (Chilean pesos)
Invoice verification is made on a different date of all the goods receipts, using different exchange rates. The system use the document date in invoice verification for currency translation. My client needs that the system post the invoice verification using the exchange rate of the date of good receipt for each position.
Is it possible to solve this problem using the standard SAP?. I was thinking to use a user exit to change the values in MIRO screen. Do you konw what user exit may we use?
Thank you

I tried the flag "Exchange rate fixed", but my client needs to make invoice verification in local currency CLP (Chilean Pesos). Purchase order currency is USD. When we set "Exchange rate fixed", indicator, invoice verification currency must be equal Purchase Order currency. This is nos the solution
Thanks any way

FI Forex gain loss & Exchange Rate difference on Foreign Currency & Chart of Accounts

Dear All,
I have queries on following :
1) what is difference b/w Forex gain loss account & Exchange Rate difference on Foreign Currency account .
2) Under which Heads in Balance sheet they should come as per Indian Accounting Standards.
3) Are these accounts common for Vendor & customers or different.
4) they record FI data at Company code level or at sub-ledger level first (Vendor /Customer) .
4) Is it advised to use same Chart of Accounts to two companies in same country by using different GL's with different FSV?
Regards
MJ

Hi M J,
Please note the answers below:-
1. It is one and the same thing. When you say forex gain/loss account, it means a GL account and exchnage rate difference means, the difference in rates at which you purchased/sold and the rate at which you made paid/collected.
2. Ask Client where they want to show these GL's in Financial statement Version.
3. The configuration setting is in OB09 and SAP allows you to keep same or diff GL for both realised Exchnage rate gain/loss. It depends on how you want to see. technically it is possible.
4. The Valuation is done at company code level, but individual records are picked up at vendor/customer level. It means that the revaluation gain/loss adjustment is not given to each individual Vendor/Customer, rather it is posted to a GL - Balance Sheet adj.
5. Yes, you can use same chart of accounts and you do not need to create separate GL's at the company code level for two company codes. Same GL's can be used as the posting is made at Co. code level.
Regards,
Kavita
Note : Please raise separate thread for different questions. Your Point No. 5 is not related to the rest.

Exchange rate in PO

Hi SAP Guru's,
I have serious problem,In Import PO I fixed the exchange rate and then did Customs MIRO
that time system taken PO exchange rate but at the time of MIGO system taken exchange rate from TABLE(OB08).and the difference amount goes to gain/loss account.
pls reply this message this is very urgent.
Points are awarded.
Thanks in advance
Raghu

Hi Vijay,
In the SAP System, goods receipts and invoice receipts are offset to a clearing account (the GR/IR clearing account).
When you receive goods, the system credits the value of the goods (goods receipt quantity x net order price) to the stock account and posts the offsetting entry to the GR/IR clearing account. The GR/IR clearing account is cleared when the invoice is posted to the vendor account.
For posting and clearing, the system uses the exchange rate type M (average rate). This exchange rate type must be entered in the system and you must also enter the exchange rates for this type.
To define different exchange rates you must specify exchange rate types.
You define exchange rates in the system for the following purposes:
1.Posting and Clearing
To translate amounts posted or cleared in foreign currency, or to check a manually entered exchange rate during posting or clearing.
2.Exchange Rate Differences
To determine gains or losses from exchange rate differences.
3.Foreign Currency Valuation
To valuate open items in foreign currency and foreign currency balance sheet accounts as part of the closing operations.
You define exchange rates in Customizing under General Settings-> Currencies ->Enter Exchange Rates.
kindly let me know what configuration settings you are working with and what version. of SAP
regards
cheers
KP

Exchange Rate Concept. e.g. - 1.00 EUR = 67.1500 INR

Dear Experts,
Can anybody please explain the concept of exchange rate.
How calculation is made of exchange while currency conversion.
For example -
Current exchange rate - 1EURO = 67.1500 INR
Import Purchase order quantity - 50
Unit Rate = 463.
Please brief me on Currency Exchange Rate in details.
Additional info is required on it.
Thanks in Advance.

HI,
When entering into internal foreign exchange transactions, you can also use the report Exchange Rate Overview for Internal Foreign Exchange Transactions. This gives you an overview of the current exchange rates for each currency. You can also use this report to check the Customizing and the market data for completeness.
You define exchange rates in the system for the following purposes:
Posting and Clearing
To translate amounts posted or cleared in foreign currency, or to check a manually entered exchange rate during posting or clearing.
Exchange Rate Differences
To determine gains or losses from exchange rate differences.
Foreign Currency Valuation
To valuate open items in foreign currency and foreign currency balance sheet accounts as part of the closing operations.
You can maintain exchange rates in OB08 between two currencies.
Thanks & Regards,
Kiran

Exchange rate diff at the time of GR

Hi All,
l have an issue which is, when l fix the exchange rate in my PO, at the point of goods receipt, differences are generated. that is,
at date 01.02.09, exchange rate on PO is fixed.
at date 11.02.09, goods receipt is done and when the accounting document is checked
it post a difference between the fixed PO rate and what's maintained on the exchange rate table
to the forex account. So l get this:
Dr Stock account
Dr Price diff account
Cr GI/IR account
Cr Forex account
Note: that IV is not yet carried out here at all. Price control is moving average.
My understanding is that differences arise between the time of GR and IV, if PO is not fixed.
Regards

Hi
If you fix the exchange rate indicator in purchase order, and doing GR (different exchange rate has been maintianed in OB08), then you inventory will be valuated at PO exchange rate. Difference will go to gain/loss on exchange rate (foreign currency exchange rate account). Same will be negated by price difference account.
You have one more setting for IV exchange rate in MM - LIV - incoming invoice - how exchange rate difference are treated. Here you maintain the settings for GR and IR exchange rate differences.
Checking the exchange rate fix in PO has nothing to do with GR and IR rate differences as through out the process the rate is constant.
Thanks

Exchange Rate Gain Loss Error

Dear Experts,
I am stuck in a very serious problem
In import purchase Order for raw material we have configured a condition for import duty.
Now in current scenario the import duty has been invoiced before goods receipt there is a minor difference in amount invoiced and amount entered in purchase order.When the receipt is posted for this purchase order an abnormally high amount is posted into exchange rate difference account which is charged to material.
This makes the moving price of material very high.
The currency for purchase order is Dollars. We have maintained a conversion in FI table and purchase order as well.
Please suggest as to what is causing this abnormally high amount to be posted in exchange rate difference account.
Regards,
Sohaib

It is a condition defined in Purchasing all the as Import Duty and calculation type is Fixed Amount.
This condition is used in import purchase order (PO currency USD). The invoice for this condition is posted in local currency which is PKR.
When Goods Receipt (105) is posted for this purchase order system doesnot convert the amount invoiced into equivalent PKR according to exchage rate specified in OB08. All amount in PKR is taken into USD with exchange rate equivalent to 1 and gain loss from this conversion is charged to material. e.g 314079 PKR is posted as 314079 USD and Gain/Loss which amounts to 27 million is charged to material. This makes MAP of material equivalent to 20000 PKR rather than 4000 PKR.

Settings for exchange rate gain/loss

In our config, for exchange rate gain /loss between ex rate in bill of lading and ex rate of actual payment , system passes two entries at the time of clearing advance and invoice in f-44. One entry is for gain and other for loss , net effect of the entries is either gain or loss . We wish to change the settings so that syatem shall pass only one entry be it gain or loss. How to achieve this??

Dear,
in my opinion the issue You're facing is due to the split activation for exchange rate.
Usually due to different account assignment in open item, the exchange
rate difference items are split. Check the table V_FAGL_SPLIT_FL2.
I hope this helps.
Mauri

Unrealized Gain/loss from exchange rate

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