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Former Member
May 15, 2015 at 09:17 AM

Incorrect Account determination while partial billing in FC terms


Hello SAP Gurus,

Please give your valueable inputs for the following scenario:

We have sceanrio where there are two types of differences while doing partail billing (MIRO)

1. Difference between the GR amount and IR amount in FC terms AND

2. Foreign Exchange Gain/Loss difference

For eg. MIGO was done for a PO for 1 quantity @ USD 100 with prevelling exchange rate Rs. 50/USD with following entry:

Material Exp Account (10000)..............Dr. 100 USD (Rs. 5000)

To GR/IR Account (20000) 100 USD (Rs. 5000)

However, Partial invoicing was done for 0.5 quantity with USD 60 (i.e more than proportainate GR amount) and accordingly system posted following entry:

(Exchange Rate on the date of invoicing is, lets say, Rs. 52/USD)

GR/IR Account (20000)..................Dr. 50 USD (Rs. 2500)

GR/IR Diff Account (10010).............Dr. 10 USD (Rs. 620)*

Foreign Exch Diff Account (10020)..Dr. -----------------

To Vendor Account(1111) 60 USD (Rs. 3120)

*3120-2500 (taking this figure as balancing figure)

The above treatment of foreign exchange is not correct as per business process and GAAP as IR amount is more than the proportainate GR amount along with foreign exchange difference. Accordingly system should post the following entry with following break-up of amounts:

GR/IR Account (20000)........................Dr. 50 USD (Rs. 2500)

GR/IR diff Account (10010)...................Dr. 10 USD (Rs. 500)

Foreign Exch Diff Account (10020)........Dr. 0 USD (Rs. 120)

To Vendor Account(1111) 60 USD (3120)

The above treatment is correct due the fact that it should post the GR/IR difference amount at the old rate and foreign exchange difference amount seperately. However, as per SAP standard logic, system directly posts the balancing figure in the GR/IR difference account.

We want to have such configuration/settings such that second entry is automatically posted by the system in this type of scenarios. Request you to check the above scenario in your respective system and please let me know if anything we can do in customization / ABAP development to have correct postings.


Abhijeet Tare