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Clearing in Local and Foreign Currency

Hi all ,

We have open items on our G/L account which are posted in Foreign Currency . We would like to clear these line items on this G/L using the manual clearing function F-03 .

What would be the difference of clearing these line items vs clearing these items in foreign currency . In which scenario do we use clearing in local currency and the foreign currency and what would be the implications of the clearing function in each of the currencies.


Thanks .


Regards ,

Srikanth

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  • Best Answer
    Posted on Feb 19, 2019 at 09:38 PM

    Hi Srikanth,

    If both open items are on the same currency, you clear them in the OI currency.

    If they are in different currencies, you have to choose one of them.

    ie: it's a local bank account with local currency but want to concile an OI with foreign curr, then your choice is local currency

    ie: it's a local bank account with foreign currency but want to concile an OI with local curr, then your choice is foreign currency

    The Ex rate difference will be managed by the system based on the currencies configured in the ledger.

    You could also use in FS00 the checkbox "Balances in LC", so no matter the currency you post in that account, it will convert to Local currency on that day and will manage balances in local currency only. A good place to look is the currency defined in the GL account.

    Kind Regards

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