KE27 - Transfer from ML to CO-PA - What exchange Rate type is used?

[former_member483088]

We have a company with a local currency of BRL and a controlling area currency of USD.   We have configured our controlling area to pass company code and operating concern currency amounts to CO-PA.

When transferring periodic values from the material ledger to CO-PA, using transaction code KE27, 2 documents are posted in CO-PA, one in company code currency and the other in operating concern currency. 

When transferring the documents from ML to CO-PA, what exchange rate does SAP use?  

Is it the M rate, P rate or another rate?    Does the system take the company code amount and convert to the operating concern amount, or does it take the operating concern amount and convert it to the company code amount, or does standard SAP not convert the amounts but simply transfer the values from the material ledger.

Any help would be greatly appreciated.

Carol

[ajaycwa1981]

Hi Carol

Product costing always calculates costs in company code currency. Standard cost estimate uses fx rate type from plan version. ML cost estimate is based on actuals, so I assume it to be M rate type

2nd aspect of your question- costing based copa is designed to reconcile with fi in company code currency.. so op concern currency is derived out of company code currency

Ajay M

[former_member483088]

Thanks Ajay for your responsem, sorry but I need a little more help.

As the Material Ledger contains actual costs over multiple months, the exchange rate in the Material ledger is actually an average rate.

I also agree that costing based CO-PA is designed to reconcile with FI, but as costs are held in company code currency, the reconciliation in FI is by company code currency.

What we are seeing in our ML, is as follows:-

   Purchase order raised in Oct 2013, rates in ML as per October.

   Purchase Part is consumed by production order in Novemver, rates in ML as per November.

   Sales Order created and invoiced in December.

The company code currency amounts are not in question, it is the operation concern currency amounts, which are translated over 3 months in the Material Ledger. 

In December, when we post to CO-PA using transaction code KE27, our expectation is that the company code currency would be moved to CO-PA with currency type 10 (this is correct) and the operating concern currency amount translated at the 'M' rate and posted with a currency type B0.    This is not happening in our environment.

I really need to understand, how the Material ledger interacts with CO-PA, and what exchange rate if any is used.

I hope this question is clear.

Thanks

Carol

[Former Member]

Hi..

When you execute KE27 to apply actual COGS to co-pa, ML data with company code currency is transferred into CO-PA data with Company code currency without exchange rate  but is transferred into CO-PA data with operating concern using the 'M' rate of date of the end
for  period.
Because Actual data is always updated in the operating concern currency using the 'M' rate.

[former_member483088]

Thanks Choi for your response.   What you described is what we believed should be the process but this is not what is happening in our environment.

A posting of 17,935.33 BRL is converting to 5,556.78 USD which is a rate of 3.228.  The M rate in our system for December is 2.3207.

The values posted to CO-PA are exactly the same values as appear in the ML for company code and operating concern currency amounts (10 and 30).

Any suggestions as to why this may be happening?

Carol