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Former Member

Fixed Asset Settlement-Controlling Currency

Hello SAP gurus,

Please be informed that our controlling area currency is USD and local currency is INR. When the projects are settled to assets, the amount which is maintained in PS is transferred to fixed asset register at INR with the average currency rate maintained in the table. For example. The value which comes from PS is 48,104.62 and it gets converted to local currency 172,800.96

( Avg rate of 0.278). The physical invoice raised is 172,500.00

There is now a difference of 300.96 between the actual invoice and amount settled. We generally make a entry through ABSO (Credit note) and adjust the FA register to match the invoice value.

My question is that is there any better way to do this? What is the best method being adopted in the industry who are dealing with two different currencies.


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  • author's profile photo Former Member
    Former Member
    Posted on Oct 11, 2010 at 10:55 PM


    Normaly currency diffrence acount are maintained where this amount is posted..



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  • Posted on Oct 12, 2010 at 05:16 AM


    Refer note 201445... It provides a solution....

    1. In FI (OB22) - You can specify which local currencies are to be managed in FI.. The 1st local currency is always comp code currency.... The 2nd and third currency can be 30-40-50 or 60.. In your case, the 2nd currency in FI needs to be USD

    2. In Controlling area settings in OKKP, you need to tick "All currencies" indicator

    The note says the following


    Whether currencies are translated when settling to FI depends on the settings in CO and in FI.

    If you activated the option "All currencies" in the controlling area, three currencies are managed in CO

    Aside from that, several local currencies can be managed in FI

    Depending on the currency settings in CO and in FI, the currencies from the CO balances are applied in FI or they are recalculated.

    During settlement, the balance is calculated in both controlling area currency and object currency and translated into the relevant currency types.

    FI takes this information and creates the FI document. Here, the system checks whether CO delivers the currency types to FI. If this is the case, the delivered amount is written to FI; otherwise, a translation is carried out.


    If your system does not adhere to points 1 and 2 mentioned above, then you have to live with this difference and use ABSO as you are using


    Ajay M

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