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Account Determination Profile for Inventories

Jan 13, 2017 at 03:28 PM

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Dear Experts,

We have configured account determination profile (Assignment of GL with Account Determination Group).

Under "Inventories" there is tab "Difference" under which there are two columns available "Gain from Exchange Rate Differences" and "Loss from Exchange rate Differences".

Issue - We are still not able to see the use of GL's maintained under above both columns.

Can you please let us know, what transaction shall we post so that we can see the use of GL's configured in above two columns?

Please see the attached screenshot of two columns highlighted.

Thanks & Regards,

Sujeet Kumar

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1 Answer

Annapurna Vunnam
Jan 16, 2017 at 11:42 AM
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Hi Sujeet,

GR/IR Clearing run will generate postings to Gain/Loss from Exchange Rate Differences for exchange rate differences.

Exchange rate differences arise in cross-border transactions involving foreign currencies and fluctuating exchange rates. Since the system always uses the current exchange rate, the rate it applies may vary between the ordering point and the receipt of the goods. This results in exchange rate differences. GR/IR clearing uses the exchange rate of the goods receipt.

For ex:

When you post PO and GSR in Company Currency(Ex:INR) and Invoice Receipt in foreign currency(Ex:USD)

The GR/IR clearing run completely clears Unbilled Payables and Purchases in Transit. The run calculates exchange rate differences and posted to the exchange rate differences account.

You can also check in Help center: GR/IR Clearing Runs> Price Differences, Exchange Rate Differences, and Cash Discounts

Hope this will answer your query.

Best Regards,

Annapurna

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