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Former Member
May 12, 2011 at 09:12 AM

Cross-currency clearing problem



Foreign cross-currency clearing btw USD & EUR is a business requirement for us (local currency is TRY). In order to do this right we maintain exchange rate table for cross currency rates btw USD & EUR. However in clearing transaction code (F-44), system calculates line item amounts as explained below:

"You can clear open items in any currency.

The amount of all the selected open items will automatically be translated into the currency in which clearing is to take place. The translation is executed as follows:

Item currency - Local currency - Clearing currency.

You are therefore not required to make additional entries in the exchange rate table for cross-currency clearing."

In this case, when we try to clear USD & EUR documents, amounts are not matching. Is it possible to calculate amounts displayed in clearing transaction accoring to cross currency exc. rates ?

An example i have is as follows:

Invoice Amount: 25,000 USD

Invoice Date: 1st May 2011

USD to TRY rate: 1,51410

EUR to TRY rate: 2,24960

USD to EUR rate: 0,67304

Payment Amount: 16,810 EUR

Payment Date: 5th May 2011

USD to TRY rate: 1,53060

EUR to TRY rate: 2,27630

USD to EUR rate: 0,67240

According to this example, if you try to clear invoice with payment on 5th May 2011 in USD, payment amount is displayed in F-44 as 24,999,74. In fact it is 25,000 USD if you use cross currency rate of 0,67240.