My client's is having different company codes. One company code(ABC) is using GBP as a local currency anotther company code(XYZ) is using EUR as a local currency. They are using GBP as a group currency.
Co.code:ABC posted a goods receipt(gr/ir) in march 2009 for 90 euros. then system convert the euros into local currency as 75 and group currency as 75gbp, so we don't have any issue at this moment.
They raised a invoice verification(MIRO) in April 2009 for the above line item -90, then system convert the euros into local curreny as 80 gbp, and group currency as 82 gbp. Here we observed that, there is difference between local currency and group currency as 80 and 82. As per the rates maintained in OB08, group currency 82 is correct value.
Can anybody please let me know, why the system is showing different values for local currency and group currency, when both are using GBP?
Thanks in advance
In Logistics Invoice Verification, when you enter an invoice in foreign
currency, the system automatically translates the foreign currency
amounts to local currency. The system calculates the exchange rate using
the following rule:
1.If the buyer entered a fixed exchange rate in the purchase order, the
system uses this rate to translate the amounts to local currency.
2.If an exchange rate was entered in Invoice Verification, the system
uses this rate to translate the amounts to local currency.
3.If an exchange rate was entered neither in the purchase order nor in
Invoice Verification, the system uses the exchange rate pre-defined in
Customizing for Financial Accounting valid for the posting date.
Exchange Rate Differences
If a purchase order is entered in foreign currency,the amounts are
translated from foreign currency into local currency at goods receipt.
If you enter the invoice for the purchase order in the foreign currency,
this can lead to currency translation differences between the goods
receipt and the invoice receipt.
How these differences are posted depends on how your system is
configured in Customizing for Invoice Verification
Exchange Rate Rounding Differences
When an invoice is posted in a foreign currency, the amounts are translated into local currency.Since the system rounds off the amounts in each posting line, this can lead to rounding differences due to the currency translation.
These differences are posted to an expense or income account.
Addition in transaction OB22 for the second local currency, it should be defined 'Translation taking transaction currency as a basis' is defined.
Pls. also refer to note:335608 Trnsln of 2nd and 3rd lcl crcy fm 1st lcl/trns crcy.
I hope the above information helps you out......
For example, amount in group currency EUR is not equal to amount in document currency even if document is posted in EUR.
This is usually due to the company codeu2019s settings for parallel currency and exchange rate differences.
Go to IMG -> Fin Acctg -> Fin Acctg Global settings -> Company Code -> Multiple Currencies -> Define Additional Local Currencies
For the specific company code, check the field for the u201CSrce Curru201D (source currency) for the group currency.
If this is set to u201C1u201D (Translation taking transaction currency as a basis), check the exchange rate for EUR : EUR. This should be set as 1: 1.
If this is set to u201C2u201D (Translation taking first local currency as a basis), check the exchange rate for the local currency : group currency and the inverse pairs (example: MYR: EUR and EUR:MYR). The rate for these two pairs should only be the inverse of each other.
Hope this answers your question.