Skip to Content
0
Former Member
Nov 09, 2011 at 02:24 PM

realized gain or loss on cash application

187 Views

Hi,

My company is in the US and our group is currency (LC2) is USD. We have a foreign sub in Europe and its company code currency is Euro (LC1).

When my subsidiary in Europe invoices in a foreign currency say GBP and receipts the cash in that currency (using t-code F-28) SAP correctly records a realized gain/loss both in LC1 and LC2. My problem is when it invoices in Euro and receipts cash in Euro which is its own company code currency. SAP correctly does not calculate a realized forex gain/loss in LC1 as the transaction occured in the company code currency. However, it does record a fairly large realized forex gain/loss in LC2 for the same transaction. As my foreign sub did not have a realized forex gain/loss on this transaction I'm stumped as to why SAP would now book a forex gain/loss in USD.

I've been told that's the way SAP does it but it does not make any sense. As the cash was never "converted" or brought back to the US on cash application we should not have any gains/losses in LC2 if we did not have any in LC1.

Any help will be appreciated.

Thanks