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Former Member

Conversion Exchange rate gain/loss Transaction

Dear All,

I have a question about conversion difference calculation.

in my sap, LC is MMK, SC is USD and FC is CNY.

I made the AP invoice with FC with exchange rate 100 on 01.10.2017. (invoice amount is CNY 8419.82) After that, I made the outgoing payment with exchange rate 105 on 10.10.2017. (by Cash in hands account).

When I checking to the JE of outgoing payment. System shows

Cash in hand--> USD 651.98(cr)

supplier account--> USD 651.98(dr)

exchange rate loss-->USD 31.05(dr)

supplier account --> USD 31.05(cr)

conversion difference-->USD 2.76(cr)

supplier account --> USD 2.76(dr)

please explain to me how conversion difference is calculated. And according to the JE, supplier account is debited (Invoice_amount*exchange rate on date of AP invoice creation) instead of (Invoice amount * exchange rate on date of outgoing payment).

Someone pls help me.

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2 Answers

  • Nov 13, 2017 at 03:43 AM

    Hi,

    Was there any other Payment involved and that was canceled?

    Regards,

    Jitin

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    Former Member
    Nov 14, 2017 at 07:22 AM

    Hi Jitin,

    No. there is only one AP invoice and one outgoing payment. I made the full payment. The difference is exchange rate.

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