Re: [sap-acct] Compliance with FASB 52 for realized Foreign exchange gain / loss
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 | Posted by ron.roberts (Senior SAP FI/CO Consultant) on Aug 19 at 11:40 AM |  Mark as helpful |
I agree with Anton, the configuration in OBA1 seems to be what is causing
the issues. The only reason you need separate account determination for
each currency is if you want to post to different G/L accounts based on that
currency. This does not seem to be the requirement in your situation.
So, I recommnend that you simplify this configuration to have only two for
each G/L account: One for local currency (currency 10) and one for global
currency (currency 30). Test this on one or two G/L accounts and see if
this gets you your desired postings. If it does, redo all of the other G/L
accounts.
On Thu, Aug 13, 2009 at 3:12 AM, ravikanth veda via sap-acct <
sap-acct@groups.ittoolbox.com> wrote:
> Posted by rveda(SAP FICO Consultant)
> on Aug 13 at 4:18 AM Hi
> The client's requirement is to comply with the FASB 52 accounting standard
> with respect to the forex realized gain/loss. The requirement is :
> "For non-USD functional companies, each time a functional currency
> transaction settles, a translation gain/loss is being recorded in Client's
> reporting currency (USD). There should be no P&L impact when a transaction
> is booked and settled in a company's functional currency. "
> The current config in OBA1 for Forex gain/losses on Open item managed
> accounts(KDF) is based on the Currency. i.e., for each of the open item
> managed GL a/cs and each currency, the account determination has been done.
> Currently all the 'Realized forex gains/losses are being posted to P&L GL
> a/cs but as the new requirement, when the Transaction currency is the same
> as the Functional/Local currency of the company code, the forex gain/loss
> which gets posted in USD(the group/LC2 currency) on open item clearing,
> should be posted to a Balance sheet GL a/c and not to P&L GL a/c.
> I have tried using the 'currency type 30' to enable the posting to a B/S GL
> a/c for the gain/loss postings in group currency. The only issue with this
> config is that when the Transaction currency is different from the
> Functional/Local currency of the company code & Group currency (for ex: TC
> is EUR, LC is GBP & LC2 is USD), the Forex gain/loss in LC is getting posted
> to the P&L a/c as per the existing config (which is based on currency) and
> the gain/loss in Group currency is getting posted to the new B/S GL a/c
> which I have configured using curr type 30.
> Pls. suggest a way to ensure that only when the transaction currency and
> the local currency are same, realized the forex gain/loss in group currency
> gets posted to a Balance sheet GL a/c
> Regards,
> Ravi
__.____._ the issues. The only reason you need separate account determination for
each currency is if you want to post to different G/L accounts based on that
currency. This does not seem to be the requirement in your situation.
So, I recommnend that you simplify this configuration to have only two for
each G/L account: One for local currency (currency 10) and one for global
currency (currency 30). Test this on one or two G/L accounts and see if
this gets you your desired postings. If it does, redo all of the other G/L
accounts.
On Thu, Aug 13, 2009 at 3:12 AM, ravikanth veda via sap-acct <
sap-acct@groups.ittoolbox.com> wrote:
> Posted by rveda(SAP FICO Consultant)
> on Aug 13 at 4:18 AM Hi
> The client's requirement is to comply with the FASB 52 accounting standard
> with respect to the forex realized gain/loss. The requirement is :
> "For non-USD functional companies, each time a functional currency
> transaction settles, a translation gain/loss is being recorded in Client's
> reporting currency (USD). There should be no P&L impact when a transaction
> is booked and settled in a company's functional currency. "
> The current config in OBA1 for Forex gain/losses on Open item managed
> accounts(KDF) is based on the Currency. i.e., for each of the open item
> managed GL a/cs and each currency, the account determination has been done.
> Currently all the 'Realized forex gains/losses are being posted to P&L GL
> a/cs but as the new requirement, when the Transaction currency is the same
> as the Functional/Local currency of the company code, the forex gain/loss
> which gets posted in USD(the group/LC2 currency) on open item clearing,
> should be posted to a Balance sheet GL a/c and not to P&L GL a/c.
> I have tried using the 'currency type 30' to enable the posting to a B/S GL
> a/c for the gain/loss postings in group currency. The only issue with this
> config is that when the Transaction currency is different from the
> Functional/Local currency of the company code & Group currency (for ex: TC
> is EUR, LC is GBP & LC2 is USD), the Forex gain/loss in LC is getting posted
> to the P&L a/c as per the existing config (which is based on currency) and
> the gain/loss in Group currency is getting posted to the new B/S GL a/c
> which I have configured using curr type 30.
> Pls. suggest a way to ensure that only when the transaction currency and
> the local currency are same, realized the forex gain/loss in group currency
> gets posted to a Balance sheet GL a/c
> Regards,
> Ravi
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