LC3. currency translation in KO88

[former_member188789]

Hi,

I'm facing a issue with the currency translation in KO88 for the Hard Index currency , set as Local currency 3

For instance, the LC1 is company code curr.- MXN

                            LC2 is group currency curr-  USD ( also set as the controlling area currency)

                            LC3 is Hard Index Currency - EUR

At the time of expense posting on 01.05.2015

the  Amount debit of the IO are  100-MXN, 7.464USD, 5.924 EUR

In Ko88 settlement

the amount credit is 100-MXN, 7.464USD but the EUR is 6.012 EUR

The LC3 is translated based on the currency forex rate maintained, whereas the  LC2 is the amount same which was debited

I've checked note 201445 - Info: Currency translations in settlement

but cant find the solution there to have the LC3 translation behavior same as LC2 in the settlement posting,

Please advice

Regards,

Charmaine

[kamalkumar_biswas2]

Hi

Have you maintained Ex rate type same in controlling area and FI ...It may be "P" in controlling area and "M" in FI...please check

[humberto_amador]

Hello Charmaine, I think it's an interesting issue.

Would you please answer some questions to help others understand this procedure?:

1) The balances you are describing are from within the perspective of CO or from FI?

2) The accounting is prepared under IAS? GAAP? Other?

3) The settlement receiver is a monetary or non-monetary account?

Thanks in advance.

Humberto

[jason_shao]

Hello Charmaine,

Please refer to SAP Note 201445 for further details about currency
convertion in settlement such as:

During settlement, the balance is calculated in both controlling area
currency and object currency and translated into the relevant currency
types.  For example, in the settlement to FI the CO transaction currency
is not evaluated and in the customer system the object currency is taken
over into transaction currency.

So you should check the date in settlement and compare the rate in OB08 to see the difference.

There should be different rate maintained for the different days.

Kind Regards,
Jason

[former_member188789]

Hi Jason,

I've tried that by entering the value date in Ko88- Extras, but still the LC3 is getting translated based on the OB22 translation rule

[former_member188789]

issue resolved

to avoid exchange rate differences, in the Invoice expense settlement to AUC  the Posting date to be specified in KO88  same as invoice date. (extras-Posting date)

    and when then settlement from AUC to Fixed Asset is carried out in the same or in the next month, the Value date to be specified in KO88 (extra-value date) same as invoice date