CTA and F80 Flow

[sap_user62]

Hi Friends,

Env BPC 10.1 Standard on hana.

I have a question related to currency conversion. In our ECC system, data is converted at daily spot rate. We bring LC(functional or company code currency) and USD (Group Currency) to BPC. We run standard currency conversion to convert the LC to USD and Monthly Avg and Monthly End rates. We do not maintain daily Spot rates in BPC. GC is USD.

I have pasted the business rule and script for currency conversion.

As I see the results, I note that flow F80 contains the difference in USD ( Monthly Average/End - Daily Spot Rate). Business is questioning on why do we get USD data from ECC and we should get only LC and convert it at Monthly rates and put it in USD.

Please let me know, how is it done in your system. We do run consolidations through DM packages.

Thanks for your time

Ed.

[sap_user62]

Thanks Vadim for your reply.

Business is asking why is BPC not taking only LC from ECC and directly convert it to USD, instead of pulling USD values also from ECC and putting the difference in F80. Is it a standard practice?

Example

ECC scenario - We have a loan account which got cleared off in LC at the end of year, but in USD it had some values due to difference in spot rates

So for that account LC =0 and USD is 2.5 million for the year end. ECC carryforwarded the data it to the next year.

When we bring the data from the totals table, for the next year and if we don't have any movements for the first month, we have LC =0, USD = 2.5 mil.

When BPC runs currency conversions its

(LC* Monthly rates) - (USD@spotrate) sitting in F80 flow

0 * Monthly rates - 2.5 mil which is 2.5 mil CTA sitting in F80 flow for zero amount in LC.

So the scenario could be ECC should not move the data in usd to the next year, or BPC needs to carry forward the CTA with reversals.

I am trying to understand if the config of BPC is correct.

[former_member186338]

To my mind it’s better to discuss it with your finance people. In my system we transfer only LC from ERP.

[sap_user62]

Thanks Vadim. Does it mean that total converted USD sits in F80 flow in your system.

[former_member186338]

I don’t have access to the system now (traveling), but you can look on setup of IFRS starter kit provided by SAP.

[former_member186338]

“Business is questioning on why do we get USD data from ECC and we should get only LC and convert it at Monthly rates and put it in USD.” - not clear wording, try to explain again!