We have added search box. Key in SAP issue keyword to search
TopBottom

Announcement: wanna exchange links? contact me at sapchatroom@gmail.com.

Re: [sap-acct] Account to account transfer both in foreign currencies

Posted by Admin at
Share this post:
Ma.gnolia DiggIt! Del.icio.us Yahoo Furl Technorati Reddit

Posted by Ron Roberts (Managing Consultant)
on Jan 10 at 1:23 PM
Hi Wissam,

There can be two different answers to your question, depending on how your
group currency is calculated. I will give an answer under one assumption:
that group currency is calculated based on local currency. If group
currency is calculated based on transaction currency, please let me know and
I will answer under that situation.

Let's play with some numbers, since that is easier to understand than just
currencies. Assume you want to exchange 100 EUR for USD and the bank will
give you 130 USD.

1. Book the credit to the EUR bank account at 100 EUR, with a debit to the
LBP bank G/L account (also 100 EUR). Let's say that the local currency
amount is 200,000 LBP using the average exchange rate (SAP type "M").

2. Book the USD transaction as a debit to the USD bank G/L account (using
the 130 USD amount from the bank) with a credit to the LBP bank account
forced at 200,000 LBP, the same as resulted in step #1.

3. Since BOTH the EUR transaction and the USD transaction resulted in a
local currency posting of 200,000 LBP, each should calculate an identical
USD group currency amount (again, assuming that group currency is calculated
based on the local currency amount).

4. Clearing the LBP bank G/L acocunt in LBP should result in NO LBP
gain/loss and NO group currency (USD) gain/loss.

The key is to force the LBP amount of the USD posting so that the LBP amount
is identical to the LBP amount that resulted from the EUR posting.

Ron

---------------Original Message---------------
From: Wissam Eter
Sent: Wednesday, December 29, 2010 2:52 PM
Subject: Account to account transfer both in foreign currencies

Dear Experts,

I am exchanging an amount from EUR to USD between 2 bank accounts. the local currency is LBP and the parallel currency is USD (Group currency). i am using an intermediate account in local currency to transfer the amount from the EUR bank to this account according to the EUR rate given by the bank. then from this account to the USD bank. exchange rate differences should arise during clearing on the intermediate account between the 2 documents. while clearing in local currency, the system is still giving the amount of the group currency different than the USD amount given by the bank in exchange to the EUR amount because it is using the EUR rate entered in OB08 and not the amount according to the rate entered in the 1st document. even if i change manually the group currency amount in the 1st document the issue is not solved. this is considered as clearing differences and not as exchange rate differences as the second document is posted in USD and the clearing is being done in
USD.
What is the common practice in this case? do i need to add the line item of the exchange differences manually to clear the document or this is another way to do it automatically?

Thanks..

__.____._
Copyright © 2011 Toolbox.com and message author.

Toolbox.com 4343 N. Scottsdale Road Suite 280, Scottsdale, AZ 85251
Mark as helpful
View this online
  
Ron Roberts
SAP Accounting Helper

Posted helpful replies on 5 threads in a group to earn a Bronze Achievement
Most Popular White Papers

In the Spotlight
Which response to your Toolbox.com Groups post was the most helpful? Use 'Best Answer' to mark highest quality content.
_.____.__

0 comments:

Post a Comment

T r a n s l a t e to your language