Multiple exchange rate in a day

[Former Member]

Hi,

My client makes lots of foreign currency payments in a day. However before making the payment he checks with the bank and negotiate the exchange rate. So in each payment (during the day) the exchange rate would vary. For example in morning payment is made in USD (@ 59.60), in afternoon he would make the payment with 59.65 & later he would make payment with 59.58.

Since the payment is huge we can't use the average rate.

They are using APP.

Please suggest how can we map such scenarion?

Thanks,

D Singh

[former_member182339]

There is few ways you can do it.

1- Maintain exchange rate and update it as required ( 4-5times daily)-

2-  Through Exchange rate Gain or Loss Account ( Common Practice)

3- Use Multiple exchange rate type for different rates in the table.

4- As suggested above use F-53 for manually entering exchange rate Type

Best Regards

Hrusikesh

[suma_mani]

Hi Singh,

You can create separate document type for payment's like ZP and assign the same in FBZP customization & also create separate exchange rate types based on your requirement ( But fix Exchange rate type's like hourly wise) like your office hours is 8 hours ,suppose business wants to maintain 2 rates for each 4 hour's,create 2 exchange rate type's.

While making the payment's ,business user has to select manually respective exchange rate type under parameter table in F110.

Regards

Mani Kumar

[Former Member]

D Singh,

Let's assume that your foreign currency transaction is in USD and your local currency (company code currency) is INR.  I don't think you need to maintain multiple rates or use different exchange rate types on a given day.  You will post the document in the "actual" foreign currency amount, let's say USD 1,000.  At that time, let's say the M rate in your system is 1:60 (USD:INR).  On the posted document, the local currency amount will be INR 60,000.  At this time you will hit your bank sub-account only, and not the main bank GL account.  When you receive the bank statement, let's say you will see INR 59,500, assuming that the negotiated rate for this payment with your bank is Rs. 59.50 per US Dollar.  So you will hit your main bank GL account with USD 1,000 and INR 59,500 in document and local currency respectively, and the same amounts will be posted as offset to your bank sub-account (the account you originally posted to at the time of payment).  While clearing the open items on your bank sub-account, you will hit INR 500 to the realized exchange rate gain account.

[sridevi_p]

Is it only for payment, you would like to have as above or for any of the normal transactions?  If it would be applicable to all, then you can change in system directly with the new rate.

[jainbh]

Hi Singh

You can have only single rate in a day in system for particular exchange rate type. So to have multiple rates for a day, i suggest you maintain different exchange rate types & maintain rates against these. Pick exchange rate types in F110 in parameters tab & carry out payment.

Alternately, I would recommend using F-53 to carry out such type of payments, where you can manually enter exchange rates, it you want to avoid maintain different exchange rate types. Your scenario reflects individual payment transaction specific rates & its much easier in F-53.

Regards

Bhavesh