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Former Member

GL Master - Only Balances in Local Currency

I am curious when to check the 'Only Balances in Local Currency' (OBILC) box on a Open Item GL. I've read information from multiple sources and interpret that it should be set on all OI accounts with a few exceptions like recon accounts for vendors and customers. In my past experience OBILC was checked for most open item accounts but the company I'm currently with has the opposite logic. With the box not checked, the clearing is process is quite complex and time-consuming. We are on the classic ledger in 6.0 and have companies in multiple local currencies with group currency of USD. Just looking for input because I'm doubting my interpretation of when to check this box.

As an example, the GL would be an AP accrual account with postings in multiple doc currencies. The company code local currency is MXN, and Group Currency is USD. Should the OBILC be checked?

Any input is appreciated.

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  • author's profile photo Former Member
    Former Member
    Posted on Oct 28, 2010 at 03:56 AM

    Hi,

    'Only Balances in Local Currency' (OBILC) is used when you do not want any foreign excange difference to be posted at the time of clearing. When this indicator is active, then the balances in database tables are updated in local currency only and thus the clearing can happen in local currency only.

    In your below example scenario, you can chosse not to activate this check OBILC, if your company is not interested in doing foreign currency valuation difference posting.

    Regards,

    SDNer

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  • Posted on Oct 28, 2010 at 07:19 AM

    If you activate this setting for a GL account, system stores the balances only in local currency though you have foreign currency transactions in this GL account. As a result you can't do Foreign currency valuation(FCV) and system doesnt post any forex gain/loss for this account.

    This has to be activated to the GL accounts, which dont have foreign currency transactions.

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