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Former Member

BP currency and transaction currency is different from Local currency.


I have this confusing scenario here and really appreciate some share of ideas.

I have a scenario here.

Local currency + system currency = AUD

There is some New Zealand (NZ) customers (eg: C00001), set up with multicurrency, because we process transactions with them in USD.

We hedge USD and NZ currencies.

Let's say today is 29/9/2008 and I have the following rate:

Spot rate 1 USD = 1.207 AUD

Spot rate 1 NZD = 0.82293 AUD

Forward rate 1 USD = 1.10 AUD

Forward rate 1 NZD = 0.9 AUD

ℹ️ process NZ customers in USD

When a sales transactions is processed against C00001 in USD, forward rate 1.10 is used, SAP recorded the transactions in USD and AUD.

To see how much NZD it is, forward rate 0.9 should be used.

(ii) process NZ customers in NZ

Spot rate 0.82293 is used.

Now, we need to provide a Profit and Loss in NZD to NZ Tax Department for those sales transactions to New Zealand customers.

This is what I have considered but stuck.

(a) I cannot make use of P & L statement - revalutaion function, because there is a combination of rate (forward and spot) in the same day.

(b) To manually enter the 'Fixed Exchange Rate' in Journal Entry and then use "Refer to rates in Journal Entry" when running P & L statement - revaluation funciton won't work, because the volume of transactions each day is massive.

(c) I have considered setting up a seperate database with local currecy = NZ, system currency = AUD and then processed all NZ transactions here.

That will resolve the issue for reporting to NZ Tax Department.

However, I will then again be stuck with the problem to convert from NZ to AUD in order to produce AUD P & L because there is combination of forward rate and spot rate being used. The reason for producing AUD P & L is so that we can consolidate the AUD database and NZD database.

Appreciate some help here.

Kind regards,

Shwu Hua

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1 Answer

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    Former Member
    Sep 30, 2008 at 05:26 AM

    I am afraid you may have to go through SDK programming in order to solve this problem. Even the current available add-on may not have solution yet.

    You are talking about two exchange rates in one day. That is not easy to achieve. In my opinion, all rates are not exact numbers per se. You may just use the middle rate to post all your transactions. The others should be Exchange Rate Gain/Loss. That will be the easiest work around before any SDK work done.



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