Incoming payment inf oreign currency

[former_member459477]

Can someone advise best way to enter incoming payment in the following scenario?

Our system currency is Sterling but we have foreign customers we invoice in Euros.

This is how I think I should be processing a Euro customers incoming payment..

1.Receive actual Euro cheque payment.

Create incoming payment against relevant AR invoices and select the SAP Euro Account in chart of accounts to 'deposit' to.

2. Deposit actual cheque in our actual bank (we have only a sterling account) and wait to see what rate bank gives us.

3. Create a JE to transfer the amount from Euro to Sterling current account in SAP according to this rate.

It's step 3 I am having problems with..

I thought i would do the following as a JE..

1.Select the 2 relevant G/L accounts.

2.Tick the 'Fixed exchange rate' box and enter the rate I received when I deposited the cheque in the bank.

3.Enter the Euro amount in the 'Debit (FC)' column of the Euro G/L account line

4.Enter the Euro amount in the 'Credit (FC)' column of the Sterling G/L account line

...I thought that the 'Debit' and 'Credit' columns woud then show the sterling amount according to the rate I entered in the 'Fixed exchange rate' field but it appears to use the rate set in Administration>Exchange Rates and Indexes.

Can anyone advise where I am wrong?

[JesperB1 · Accepted solution]

Hi Andrew,

The 'Fixed exchange rate' will not determine the rate of the actual posting, this rate is for revaluating reports according to this rate. See Note 856368.

To do the Journal Entry you want you will have manually calculate the entries according to the rate you were given.

To be able to do this you need unblock a few things in the Journal Entry form.

- Open the Journal Entry and open the form settings

- On the 'Document' tab and then 'Table' tab untick the boxes 'From LC Field' and 'From FC Field'

Now the entries for Foreign and Local Currency will be set independently of each other, meaning, by changing the foreign currency amount B1 will not automatically update the amount in Local Currency.

If you also want to be able to update the system currency, go to:

Administration -> System Initialization -> Document Settings -> Per Document Tab -> Journal Entry:

untick the box 'Block Editing of Totals in System Currency'.

Hope it helps,

Jesper

Edited by: Jesper Magnusson on Jan 14, 2009 9:46 AM

[former_member459477 · Accepted solution]

Hi Jesper

Thanks for responding.

I unticked the boxes 'From LC Field' and 'From FC Field' as suggested.

But when I try to enter the EUR amount in the Credit (FC) field I get a message 'Invalid currency'

Can you advise further?

Both accounts are set to 'All currencies'

[JesperB1 · Accepted solution]

Hi Andrew,

There a few things that can cause this.

- If Euro is the local currency it will give this error.

- You should use the currency code, not the International Code or English name. You will get the codes that can be used with SELECT CurrCode FROM OCRN

Hope it helps.

Jesper

[former_member459477 · Accepted solution]

Thanks Jesper - I think the problem was I hadn't put a currency code in at all - I thought if I just put the figue only in the FC column SAP would know it was EUR..