Hi,
Local currency Euro
GL account A account currency Euro (has got an open item for usd 100)
GL account B account currency Euro
In the above situation if i use the post with clearing t.code f-04 to transfer the 100 us dollars from one gl account A to another gl account B then the system is calculating forex gain/loss. however is this correct to calculate the forex gain or loss for this transaction? From an accounting point of view, conceptually since we are just merely moving the foreign currency amount from one account to another why shd there be a forex gain/loss is calculated?
Take note that dont reply on how to change the F-04 document posting so that no forex will be calculated, i myself know it, i can just change the exchange rate to be the same as the original document's exchange rate so that in the f-04 document no forex difference is calculated. This is not my question. My question is rather on the accounting principles, as to whether shd there be a forex gain or loss for the above situation.
Can someone comment on the accounting perspective of this?