foreign currency valuation using two local currency

[former_member221242]

HI ,

My question is difference in exchage rate COLUMN mentined in SA38.(See attached screenshot)

Why to create LC1 and LC2 .?

In case LC1 =EUR and LC2 is USD then how transaltion should happen?

[ajaycwa1981 · Accepted solution]

Hi Kaushal

That purely depends on business need

You have options like - Converting from Transaction Currency to 2nd Local Currency OR Convert from Transaction to 1st Curr and from 1st to 2nd Local Curr

For Exchane rates also - You have options like Taking fx rate based on Doc Date, Posting date, etc

Parallel Currencies are needed incase your company has a Parent Company in a differnet country and they want the Values to be reported in their currency

Br. Ajay M

[former_member221242 · Accepted solution]

Thanks Ajay ,

As u can see in myscreenshot of translation in group currency ......i am not able to get second  exchage rate table in it .

Also could u correct me if m wrong abt fact that in OB22 transaction type -if shown as posting date then what rate will it take for translation ?

[ajaycwa1981 · Accepted solution]

Hi

1. In OB22 , If shown as Posting Date, then it will take the rate as of your posting date from OB08

In your case, the Transaction Curr converts to 1st Local Curr and from 1st Curr to 2nd Curr, using Posting Date as the basis to get Fx rate from OB08

2. If you are talking about FAGL_FC_VAL, not showing 2nd Currency, thats standard SAP

You need to run FAGL_FC_TRANS to  get revaluation amounts in 2nd and 3rd Currency

Br. Ajay M

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[former_member188028 · Accepted solution]

It'll take exchange rate of posting date. E.g.Doc. date = 11.05.2014

                                                              Post.Date = 12.05.2014

if you select document date then system will take 11.05.14  rates

                   posting date then system will take 12.05.14

                   translation date then you have option to enter a different rate than posting date &

                   document date, if you don't give any value then posting date will be copied into that

                    field.       

[former_member221242 · Accepted solution]

Hi Ajay ,

in FAGL_FC_VAL

I mean here is in translation in company code curency screenshot

Doc no 5000000125

doc ex rate 0.73841

Ex rate on translation date -1/1.37450

But in case of translation in group currency screenshot

Doc no 5000000125

ex rate 1.35431( I dont know wher that came from )

Ex rate -1.37450( though translation type is given as posting date .it is adopting rate on translation date )

Regards

KG

[former_member188028 · Accepted solution]

This just expression of direct and indirect quotations. 1 USD = 0.73841 EUR 1 EUR = 1.35431 USD In your case your group currency figures will be arrived from transaction currency >>> Company code currency >>> Group currency.

[former_member221242 · Accepted solution]

Hi murali

Agreed what ever u say ,but that direct quotation is correct till three digit after decimal due to which ther is inappropriate calculation of gain /loss on foreign exchange .

is ther ny solution where we can adjust calculating amount to exact figure

Regards '

KG