LC other than national currency

[Former Member]

Hi All,

I have a customer who's national currency is SGD,but the according to the IRAS(Inland revenue authority of singaopre),

if 60% of the customer's transactions are other than the local currency(national currency) then the Local currency should be set as that Foreign currency(USD).

So i have proposed the customer to set LC as SGD and SC as USD.

Here GST reporting should be done in SGD.

So when there is a supplier invoice in USD the supplier will send the equivalent SGD for GST purpose.

But in SAP if we consider LC as USD and the corresponding SGD can be recorded only on the exchange rate table,where as the SGD rate will be varying according to the individual supplier invoice.

Is there any workaround available to record the SGD equivalent value in order to generate the GST report accordingly even the document currency is same as the local currency(USD is considered as LC)

Note:Customer is aware that if they maintain LC as USD they will not be able to revaluate USD curreny.

Kindly share you precious inputs on the above scenario

Regards,

Raja

[Former Member]

Hi Raja,

Your message is somewhat unclear. Is the LC SGD or USD? If government requires USD is LC by 60% rule, you have to follow.

For GST amount in SGD, you have no other options but using exchange rate difference to adjust.

Thanks,

Gordon

[Former Member]

Hi Gordan,

Now USD as configured as LC and SGD as SC.

When there are AP Invoices the exchange rate given by the supplier will vary ie.,AP invoice will be in USD and the exchange rate for SGD will also be provided for GST purpose.

But for USD the equivalent SGD will be taken from the exchange rate table,which we can not change as per the individual document for corresponding GST tax calculation in SGD.

Now as per your suggestion if it has to be manually adjusted then the Tax report also need to be customized accordingly if i am correct.

Regards,

Raja

[Former Member]

I am afraid I do not have the answer since I can not access the same kind of environment to test.