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Multiple BP Currency and Payments

Former Member
0 Kudos

Hi All,

The scenario is we have a BP to whom we do the sales billings in multiple currency eg. USD & EUR and system currency or local currency is SGD.

Have created a BP master with multiple currency and it looks fine as far as sale invoice is concern. Now we have reaceived an advance payment from the customer in EUR 1000, when we process the same through Incoming payment screen by selecting Payment On Account system considers it as SGD ie. Local Currency and not in Foreign Currency ie. EUR.

We have two bank accounts one is for USD and another one is for EUR. We will be debiting the respective GL accounts while posting incoming payment.

Request help from all experts to extend a solution for the same.

Regards

N.Narayana Swamy

Accepted Solutions (0)

Answers (2)

Answers (2)

Former Member
0 Kudos

Hi Kestrin,

With the information and deails provided, I understand the complexity in managing a BP in multiple currency.

In this case customer book all commercial sales invoices and purchase transactions in USD & EUR currency for a particular BP. Which we can post by changing the currency at doc level, the issue is when we receive an advance payment from the customer in FC.

While processing incoming payment no where in the screen we can specify currency type, by default system prompts LC. Where as I have different bank accounts like ABC Bank - USD and XYZ Bank - EUR. In GL account we have mentioned respective currency type and not the LC.

In such case, how do we can post an incoming payment to repsective bank account with respective currency type mentioning in incoming payment screen.

Regards

N.Narayana Swamy

K_Pauquet
Advisor
Advisor
0 Kudos

Hi N.Narayana Swamy,

you can display the actual LC balance & transactions of an MC BP in any currency you have defined, yet all dealings with this type of BP are done in LC. Thus, any bank account involved with this BP should either be LC or MC, it cannot be FC.

In the set-up you describe, the only solution I see for you is to use an MC interim account & then manually transfer the funds to the FC cash account. Please see this note for an example on how to do that:

Note [1260658|https://service.sap.com/sap/support/notes/1260658] - Transfer monies between different monocurrency accounts

All the best,

Kerstin

K_Pauquet
Advisor
Advisor
0 Kudos

Hi N.Narayana Swamy,

by definition the account of a multicurrency (MC) BP is held in local currency (LC). All other displays in any other currency are just that, a display according to the rate of that day. So if you receive a payment of u20AC1000 on account, the application will receive the SGD value of these u20AC1000 according to the exchange rate on the posting date.

All the best,

Kerstin

Former Member
0 Kudos

Hi Kerstin

First let me thank you for the reply,

When I process the incoming payment no where in the SAP Business One incoming screen, system prompts whether it is EUR or USD, by default it considers as SGD when you input the value in Payment on Account tab.

In that case how system recognises is it EUR or USD.

Regards

N.Narayana Swamy

Former Member
0 Kudos

Hi N.Narayana Swamy,

As pointed out by Kerstin, if BP is MC, all transactions will be converted to LC. No FC concept for MC BP. They are special LC BP that allow other currencies to convert into.

In your case, if you have only two foreign currencies, it is better set up BP by one currency only. We found it is so difficult to work with MC BP to map to the actual accounting process.

Thanks,

Gordon

K_Pauquet
Advisor
Advisor
0 Kudos

Hi N.Narayana Swamy,

to add to Gordon's statement, in SAP Business One the reconciliation currency is the dominant one, for LC & MC BPs that is always LC, for FC BPs, it's the FC.

When working with different currency BPs, e.g. a USD & A EUR BP, please keep in mind that you will not be able to internally reconcile these 2 BPs.

All the best,

Kerstin