Avoid posting of realized exchange rate differences in 2nd local currency

[Former Member]

Dear SAP fans,

The situation here in our company is that a company code is set up with NZD as 1st and EUR as 2nd local currency (currency type 30 "Group currency" for EC-CS consolidation).

Therefore, all postings (and balances) are also translated and saved in EUR (with the current exchange rate).

We now have an open item managed G/L account for prepaid expenses, which is used to collect postings which are then cleared later. It's however no payable/receivable account for vendors/customers. Therefore, it doesn't make sense to post realized exchange rate differences when clearing this account. This is however what SAP wants to do when we try to clear it.

For example, if I post today 100 NZD and two months later again 100 NZD to this account. If the NZD vs. EUR exchange rate changed in the meantime, then SAP won't let me clear this account without posting realized exchange rate differences, which makes however no sense.

Does anyone of you meet this problem before? Could you please give me a hint?

I thought about setting the "Only balances in local currency" indicator in the G/L account master but this helps only for differences between local and document currency (and not for differences in 1st and 2nd local currency).

Any help is highly appreciated!

Thanks and best regards,

Peter

[chetan_bhatt3]

Hello Sir,

My client is doing business in Company Code Currency (currency type - 10) in USD and we have ONLY USD currency define as local, global and CO object currency in our ledger. My client don't want to post any transaction (any transaction code through all module) other that USD currency, I mean no any foreign currency. Could you please let me know how can I make necessary change in current system. I know there is do through substitution rule but I am not technical knowledge, I am in functional area.

Thank you and appreciate for your time,

Chetan Bhatt

[Former Member]

Hi Peter

I just posted a very similar question today.

I found your message and wondered what solution you found for this problem?

[Former Member]

In T Code OBY6, check the checkbox 'No forex rate diff. when clearing in LC' for your company code.

Assign pts if this helps!

[Former Member]

Dear Pradeep,

Thanks for your answer. The problem is however regarding realized exchange rate differences when clearing the G/L account and not regarding foreign currency valuation of the account.

Dear Srikanth,

Thanks for you hint. I've already checked this possibility, but this is only about document currency vs. local currency and not about 1st local currency vs. 2nd local currency.

Furthermore, this setting would have a negative impact in clearing vendor and customer invoices (because in this case, it makes sense to post foreign exchange rate differences as these are "real" payable/receivable accounts).

Thanks anyhow!

Best regards,

Peter

[Former Member]

Sorry about that! I got your question correctly now. What if you delete the entry in OB09 for this prepaid expenses a/c., and enter EUR amount manually (bypassing the exch. rate) while clearing the open item?

[Former Member]

Dear Srikanth,

I tried this with transaction F-03 in the moment but I'm not able to enter an exchange rate somewhere.

Do you think of transaction F-03?

Thanks and best regards,

Peter

[Former Member]

In F-03, once you choose the open item, click on Document Overview (Shift+F2) button, enter posting key, GL account and press enter. In the next screen enter the amount in NZD and click on more data (F7) button. You will be able to enter amount in group currency manually.

Alternatively, in F-04 initial screen, you will able to enter the exchange rate manually (enter the one that you have on the date of original document)

[Former Member]

Dear Srikanth,

Thanks for your suggestion. I tried this in our test system. Unfortunately, it's not possible to post with 0.00 NZD in local currency 1 and for example 5.00 EUR in local currency 2 (group currency) in F-03 or F-04.

If I try to post like this, then SAP ignores the posting as the local currency 1 amount is zero. I don't want to post however in local currency 1 as the amount in this currency balances already to zero. Only local currency 2 doesn't balance to zero.

I assigned points to your answer anyhow.

Any other hints anybody?

Thanks and best regards,

Peter

[Former Member]

You can do it with F-05 - in the initial screen enter currency as EUR. Once you key in the posting key, GL account and press enter, you will see amount in EUR field where you can enter your differential EUR amount. Leave the amt. in loc. cur. __________ NZD blank.

[Former Member]

Hi Peter, how did you solve your problem? I have the same case. Thanks

[Former Member]

Hi Peter,

The simple way is to exclude this GL (Prepaid expenses GL) in the GL range for valuating open items in F.05. Futher you can save this as a variant.

Sorry I mis-read your question. Pls ignore this post.

-Pradeep

Edited by: Pradeep kumar Athmakur on Jun 3, 2008 8:51 PM

[Former Member]

Hi,

First maintaint the Global currencys if required in OB22 as second currency.

Define the Forex and assign the GL accounts of Loss and gain A/c For the Sundry creditors, sundry debtors and Gl account etc. in transaction code OB09.

maintain the regular exchange rate updates in OB08.

So that, what ever the currency u post the invoice and Payment automatically

system will convert the Currency in to Local currency.

Reward if useful

Regards,

Padma

[Former Member]

Dear Padma,

Thanks for your answer. The customizing activities you mentioned are already set up in the system. This is not our problem.

The problem is however, that we don't want SAP to post automatically realized exchange rate differences between 1st and 2nd local currency as this doesn't make sense in this business case.

It's about an open item managed G/L account which is used to collect posting which are later cleared. It's not a payable/receivable account for customers/vendors where the posting of realized exchange rate differences makes sense.

We've thought about several solution which unfortunately all didn't help us:

- Don't setup realized exchange rate differences accounts or set them up only for group currency (in OB09)

- Set indicator "Only balances in local currency" in G/L master data

Best regards,

Peter