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foreign currency valuation using two local currency

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?

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  • Best Answer
    Posted on May 12, 2014 at 10:37 AM

    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

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    • Former Member Murali Babu Nallamothu


      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

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