two sided eliminations in TC and GC

[Former Member]

Hello Guys,

I have some questions regarding 2 sided eliminations:

I want to create posting for Currency-related differences only: the system should check that the sum in transaction currency of the items to be eliminated = 0 in every situation. Then, for the selected items, I wand to post a currency related difference only when values in group currency are different.

In order to do so I have applied the following customizing options:

-Doc type: key figures in Transaction Currency and Group currency,

-Method:

oDifference per Transcation currency

oUse limits

oKey figure attribute in Group currency

oCheck limit per documents

oNo specification in limit currency key to make sure that the “system uses the method as if a limit of zero had been defined for all currency keys”

When I run the elimination process the system creates an "other dofference" elimination posting even if the amount in TC is <> 0 !

Did I do something wrong in my choices?

Do you think what I want to do is realistic?

Do you think that the system is not behaving correctly and that I should look for some OSS notes?

Thank you in advance for your help

Best regards

Pascal.

[Former Member]

I'm afraid I am getting caught up in the accounting. My understanding is that for FAS52, you have to:

1. translate from transaction to local/functional currency, and then book the gain/loss impact which is either realised or not realised. (Done in R/3 and booked in the statutory local ledger in local currency)

2. translate from local to group and then book the gain/loss impact... (done in BCS)

If you translate from trans to group in BCS and you already have incorporated the gain loss from the tc to lc, are you not double counting? I would think you only should do LC to GC in BCS.

I have not seen a case where we are translating from transaction to group. So I am sorry I cannot be of assistance.

[Former Member]

The computation of the unrealised gain or loss from the translation would already have been performed in R/3 in the Revaluation of open A/R and A/P. In R/3, get the revaluation program to post the unrealized gain or loss from open items to a separate Balance Sheet account called Unrealized gain or loss - Intercompany for the Intercompany portion.

Then in BCS, set up a standard elimination for this account.

Good luck!

[Former Member]

Hello Tara and thank you for your answer,

I am not talking about revaluation.

Imagine that you have 2 entities A & B.

You have translated the amounts in group currency using BCS translation method before elimination.

Exple 1:

Entity A 100 TC 110 GC (with entity B)

Entity B 100 TC 120 GC (with entity A)

=> during elimination, I am expecting the sytem to post an adjustment posting with value 0 in TC and 10 in GC for exchange rate adjustment.

Exple 2:

Entity A 90 TC 110 GC (with entity B)

Entity B 100 TC 120 GC (with entity A)

=> during elimination, I am expecting the system to do nothing because the amounts in TC are not equal !

Is this a standard option? Is my customizing correct for such requirement?

thank you in advance for your help,

Best regards.

Pascal.