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Former Member
Feb 10, 2011 at 04:19 PM

Help..payment differences with alternate currency

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Hi All,

If you need to pay an invoice in an alternate currency then you need to set up:

-accounts for payment diff in alternate currency

-clearing account for payment diff in alternate currency

Can someone explain to me how the accounting woould work if these accounts are setup? I'm don't understand why you would need a clearing account.

If the above 2 accounts are not setup up, wouldn't the differences still be caputred in foreign xchange gain/loss account? (the config for this is setup).

Any help would be appreciated.

Suhail

Moderator: The best way to understand it is reading some material on clearing exchange rate difference in SAP and doing some tests. Please, avoid asking basic questions