F110: Exchange Rate Differences

[Former Member]

Hi All,

I have a requirement where F110 is being used by to settle the due netting invoices. This is done by creating a payment proposal, where no money is actually sent. An entry is made to the required account. The netting invoices that should be settled according to the netting settlement are being settled at the exchange rate at the time of raising the invoice. That means, an invoice from June which is being paid in July, will need to be settled using the same exchange rate as in July. However, F110 is instead revaluing the invoice to the booking rate in August. This is continually creating currencies differences on the account. There are two different payment methods for customers and vendors for the same.

I am aware of the setting in FBZP for setting up paying company codes for payment transactions where I can select u201CNo Exchange Rate Differencesu201D checkbox. However it will affect other payments also.

Is there any other way where F110 can pick up the exchange rate of original due invoice.

[fernando_evangelista · Accepted solution]

Hi Ramakrishna,

If you flag in customzing of the payment program the field "No Exchange rate differences" (T042B-XKDFB) it means, that no exchange rate differences should be posted.

Check the following information if you are doing a down payment request:

But, in case of down payment requests (or payment requests) SAP does not consider this flag and always recalculates the amount in local currency for the corresponding down payment.

Down payment requests are noted items which are technically used in order to create a down payment within F110.

The behaviour of F110 coresponds to the behaviour of the field of the manual posting. If you post the down payment manually referring to the corresponding down payment request then the system will also

recalculate the local amount. Only if you change the exchange rate of the down payment manually then the System

would take the corresponding exchange rate which was entered.

But this procedure is not possible within F110. You cannot enter the exchange rate, only the currency rate type could be entered (field F110V-KURST).

You cannot compare the behaviour of the payment program for down payment requests with the behaviour for normal invoices.

A down payment requests is more or less a technical document which is needed for the creation of the down payment within F110.

This is different to the clearing of a normal invoice within F110.

The down payment request IN FOREIGN CURRENCY has the exchange rate of

the date in which It was posted; the same system behaviour for the

down payment created by ta F110.

So you could for example:

1. when you run F110, to choose as posting date the one of the down payment request; so the system will take that exchange rate.

2. use the manual down payment F-48 and fill the field exchange rate BKPF-KURSF as You need.

Regards,

Fernando Evangelista

[balajiradhika]

Hi,

Try giving Exchange rate type in the parameters tab-F110.

this will help you to translate payment amounts from foreign currency to local currency during a payment run, the program uses the exchange rates for the rate type you specify here. If you do not specify a rate type, it uses the the average rate (rate type M).

This might help you.

Regards,

Radhika.

[ramanuja_charysripada]

Hi,

Do not Post any Exchange Rate Differences

Use

Ensures that no exchange rate differences are posted by the payment program.

If the indicator is set, no exchange rate difference posting is generated. The amount in the bank posting in local currency does not result from translating the foreign currency amount at the current rate but from the total of the local currency amounts from the settled items.

If the indicator is not set, the difference between the exchange rate at the time of posting and the exchange rate at the time of payment is determined for items which are posted in foreign currency. The payment program uses the translation rate in the currency table in the system for this purpose.

The exchange rate differences which have been determined are automatically posted for each payment. A valid table rate is used when you post to a bank account or a bank sub-account.

Regards,

Ramanuja