Foreign Exchenge posting

[Former Member]

Hi

In OBA1, we configure for foreign exchange loss or gain at the time of open item clearing as well as at the time of valuation. In the first two fields we give G/L accounts for realised gain or loss at the time of open item clearing. In the next two fields we give G/l for gain or loss at the time of valuation.

My question is then what is the field "Bal.Sheet Adj.1" meant for.

Also in our one of project, I saw this account getting hit even at the time of open item clearing. How it is made possible.

The entry was like

Vendor A/C dr

To bank

To Bal Sheet Adj A/C

To Valuation Gain A/C

I feel it should be only like

Vendor A/C Dr

to Bank

To Valuation Gain

Balance sheet Adj A/C 1 should only get hit at the time of open item valuation in F.05.

If first entry is correct, then what is the logic and how to post to both accounts and on what basis

I hope i have put the question correctly

Thank you

Pushkaraj

Message was edited by:

pushkaraj kulkarni

[dominic_holdstock]

Hi,

The Balance Sheet adjusment account is for posting the unrealised gains/losses at the balance sheet date.

When the final payment/clearing is then made, only the gain/loss for the current Year is posted to the P&L, the portion relating to the previous year is cleared against the adjustment account.

Kind regards