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Issue: Intercompany Short Term Loan balance not in EUR currency.

Issue: Intercompany Short Term Loan balance not in EUR currency.

Treasury fund subsidiaries bank accounts in EUR (From Europe Ltd), GBP and USD (from Group Ltd). IC short term loan (STL) balances are maintained in EUR currency only. However, it has been observed that Treasury is maintaining IC STL balance in EUR, but subsidiaries are maintaining IC STL balances in funding currencies (EUR, GBP & USD).

The issue here is when revaluation is executed, IC STL GL account 219510 result in revaluation difference due to subsidiaries having different currencies. IC STL balances maintained by subsidiary is in funding currencies, which is contrary to Europe ltdIC STL balance. Treasury as well as subsidiary should maintain IC STL balance in EUR only.

When USD/GBP is required by subsidiary,it is not directly funded by Europe ltd, it is funded by Group ltd. Which act as Finance & subsidiary entity.

Process is bank statement get loaded in SAP through MT940 format and user does below mentioned transactions.

Steps of the process:

  • 1.FEBAN: Reconcile the Bank Statement
  • 2.F110: Do the internal payment run with payment mentioned ‘Y’
  • 3.IHC0- Post the document
  • 4.F9B1: advance the date
  • 5.F9HL: Balance sheet preparation Bank Customer Accounts
  • 6.F9HI: Transfer Bank Current Accounts
  • 7.F9N1: Start internal Bank Statements
  • 8.FEBP: Update internal Bank Statement
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