FI Forex gain loss & Exchange Rate difference on Foreign Currency & Chart of Accounts

[Former Member]

Dear All,

             I have queries on following :

1) what is difference b/w Forex gain loss account & Exchange Rate difference on Foreign Currency account .

2) Under which Heads in Balance sheet they should come as per Indian Accounting Standards.

3) Are these accounts common for Vendor & customers or different.

4) they record FI data at Company code level or at sub-ledger level first (Vendor /Customer) .

4) Is it advised to use same Chart of Accounts to two companies in same country by using different GL's with different FSV?

Regards

MJ

[Former Member · Accepted solution]

Hi M J,

Please note the answers below:-

1. It is one and the same thing. When you say forex gain/loss account, it means a GL account and exchnage rate difference means, the difference in rates at which you purchased/sold and the rate at which you made paid/collected.

2. Ask Client where they want to show these GL's in Financial statement Version.

3. The configuration setting is in OB09 and SAP allows you to keep same or diff GL for both realised Exchnage rate gain/loss. It depends on how you want to see. technically it is possible.

4. The Valuation is done at company code level, but individual records are picked up at vendor/customer level. It means that the revaluation gain/loss adjustment is not given to each individual Vendor/Customer, rather it is posted to a GL - Balance Sheet adj.

5. Yes, you can use same chart of accounts and you do not need to create separate GL's at the company code level for two company codes. Same GL's can be used as the posting is made at Co. code level.

Regards,

Kavita

Note : Please raise separate thread for different questions. Your Point No. 5 is not related to the rest.