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author's profile photo Former Member
Former Member

How to realize goods movement posting at historical Exchange Rate

Posted on Sep 23, 2013 at 09:00 AM 58 Views

Hi All,

Our Company code is using parallel currencies 1LC is CNY, 2nd LC is USD. (In T.Code: OB22)

When we look at the values for local currency 2 (USD) in goods movement posting, all the entries have been translated from CNY to USD at the same rate each month, which should be the proper treatment. In fact the translation to USD is occurring at the historical rate for the inventory account,which is correct.

We want post goods movement amounts for LC2 that are posted each month to be translated using the historical rate not the current rate in place at the time goods movement was post. Our issue is how do we make the change to realize the post for inventory at historical Exchange Rate in LC2(usd).

Thanks in Advance

FIN (Finance)
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2 Answers

  • author's profile photo ManiKumar Yandrapu
    ManiKumar Yandrapu
    Posted on Sep 23, 2013 at 01:29 PM

    Hi Zhang,

    Have you check following customization where exchange rate determination type maintained against currency type.

    SPRO > Financial accounting New > Financial account global settings new > Ledgers > Ledger > Define currency of ledger. Double click on company code > Check second currency > Check exchange rate assigned to second currency.

    Regards

    Mani

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  • author's profile photo Former Member
    Former Member
    Posted on Sep 23, 2013 at 01:55 PM

    Hi

    in OB22 you are able to define option translation date type --- TrsDte typ

    choose option document date or posting date 1 or 2 which will be more appropriate for your situation

    generally goods movement will have same posting and document date so the ex rate will be on that day.

    please take a note that this will affect all postings not only goods movement posting, and check is it ok for other postings

    from my experience

    document date and and posting date gives more accurate calculation for LC2 and LC3.

    Hope this helps

    Regards

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    • Former Member
      Sep 24, 2013 at 04:00 AM

      Dear Dragan,

      In OB22 i have defined translation type M and assigned posting date 2 for my company code. When i post goods issue, the 1st local currency CNY amount is transalted into 2nd local currency USD with real time exchange rate directly at the time posting. What we want is the currency amount CNY should be transalted into USD at historical exchange rate. Because we receive the goods with exchange rate 8.1 but issue them with 6.3 that does not meet our requirements. For example: if all the goods are issued from warehouse, the total CNY value is 0, but the USD value will be below 0. Now we have to adjust the values of inventory account in USD. Is there any solution for this problem?

      Thank u so much!

      Jessie