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Conversion Exchange rate gain/loss Transaction

Nov 12, 2017 at 12:17 PM

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Former Member

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

Jitin Chawla
Nov 13, 2017 at 03:43 AM
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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
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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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