Exchange rate for MM SD & FI

[former_member611310]

Hi we are implementing rollout for Indian company code and our client requirement is to maintain different exchange rate type for MM SD & FI. As of now system is picking the exchange rate type M from OB08. Now client is asking to maintain exchange rate type .for export (sales) & import (purchase).

For SD we can assign exchange rate type in customer master but for MM we can assign in document type level but same document type will be used with other company codes globally so we cant assign document type level, please suggest on the same to proceed further.

Best Regards,

Ekambaram

[former_member856655]

Hi Ekambaram,

I have the same requirement for Thailand client. Could you please help me if you have implemented any solution to this?

Thanks,

lakshmi.

[sanilbhandari]

Hi ekambaram

There is no legal obligation in India to have exports and imports recorded at a rate specified by customs authorities. You should question the legal validity of such requirements. The only requirement is that customs duty payments have to be at a specified rate and not really the accounting of inventory and vendor liabilities in case of imports. However, if you still need to have a fixed exchange rate, as a work around, in the PO header under the delivery tab, you can specify the exchange rate that you need in case of Foreign Currency PO and mark the exchange rate as fixed. Now the subsequent transactions would happen at this rate.

For SD Invoices, you can actually use a different billing type for export and assign a new accounting document type for this in the billing type configuration in VOFA. Now assign the exchange rate type you want to use in accounting type configuration in OBA7.

However, I again want to reiterate, there is no such legal requirement for exports and imports and why would you do such complicated processes if there is no legal obligation in India. It is just that lot of accounting users insist to have in place since they have been used to doing it for years, but is not a valid legal requirement.

Regards

Sanil Bhandari

[former_member611310]

Thanks for your valuable answer.

Our client is downloading exchange rates from Customs website which have different exchange rate for Export goods and Import goods and asking us to maintain both rates in SAP. May I know should we follow the same or we can use only standard M type? Please clear the query which will be great help

Best Regards,

Ekambaram

[sanilbhandari]

Hi ekambaram

It is a business decision on what exchange rate should be followed, customs exchange rate or M rate. All I can say is that there is no legal requirement to convert at customs specified rate. However, it is more a question of general practice. So you have to check with your business colleagues on the right exchange rate and ask if the change is really required since this is not a legal requirement in India.

Thanks & Regards

Sanil Bhandari