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Former Member

Business Impact Or Significance Of OBC8 setting

Hello All,

Could anybody explain the business impact or significance of OBC8 setting for a Company code?

What would be the impact of not maintaining anything in this i.e. removing an Option which is available in F4 or vice-versa?

Rgds,

Vijay.

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    author's profile photo Former Member
    Former Member
    Posted on Jan 07, 2014 at 12:11 PM

    Hello Vijay,

    I think below explanation might be helpful:

    Option 1 maintained here denotes – “Enter tax exchange rate manually”. The reason for maintaining Option ‘1’ here would have been as below:

    If you enter a different exchange rate (differing from that in the document header) during document entry, then you need to maintain this setting of Option 1 here.

    Option ‘Blank’ - On the other hand, as you have enquired, if you do not make any settings here i.e. keep it blank, then what ? Then the currency is converted, using the exchange rate that is derived from base amounts in document and local currency belonging to the tax code.

    As an additional information, I would like to add here that in case of Option 1, if you enter a different exchange rate (differing from that in the document header) during document entry, then it is possible that differences can arise in the local currency. Therefore, you need to enter an account for the posting of exchange rate differences. SPRO >> Define Account for Exchange Rate Difference Posting. Whereas with Option ‘Blank” If you translate the tax amounts using the exchange rate predefined by the tax base amounts, you need not make this account setting.

    Hope this helps.

    BR.

    Avinash

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