Outgoing Payments in Foreign Currency

[Former Member]

I am trying to figure out how to correctly post payments and apply the gain/loss to exchange rates.

LC = USD

FC = CZK

I post an AP Invoice for CZK 20,000 in June with an exchange rate of 1 USD = 20 CZK.

The GL Records the transaction using the above rate as defined in the Rates table.

Two months later I post an outgoing payment. I paid the vendor in USD. The rate defined in SAP is 1 USD = 19 CZK.

The vendor, however, uses a rate of 18.90 CZK per USD, therefore, I need to send USD 1058.20 (CZK 20,000 / 18.90)*18.9

How do I post this transaction? I need to somehow specify that the exchange rate for the payment is different than the exchange rate that is listed in the rates table. If I enter a USD payment of 1058.20 then SAP calculates the CZK 19, not the actual one exchange rate. If I specify payment in CZK then the USD calculation is incorrect.

I should have a exchange rate loss of USD 58.20 through the transfer. I will also need to post the exchange rate loss between the ap invoice rate and the payment rate. For the second part I found that I can do this through Financials > Exchange rate differences.

What am I doing wrong?

[former_member186095 · Accepted solution]

Hello,

using exchange rate different can be correct for your case if you deal with foreign currency. Meanwhile conversion rate different is for SC and LC different.

There are some options there in the header to select before perform the different.

Another things to consider is that there is no unrealized gain/loss G/L account field in the G/L account determination of SAP B1. I think you could use manual journal entry for this one but discuss with your accounting staff first.

Rgds,