0 Replies Latest reply: Mar 16, 2012 3:07 PM by Taro Miyanishi RSS

FX differences calculated from M rate & the assumed exchange rate on IR

Taro Miyanishi
Currently Being Moderated

Dear SAPer,

We have set "Configure How Exchange Rate Differences Are Treated" within Logical Invoice verification to calculate calculated from the exchange rate at the time of the invoice receipt and the assumed exchange rate on IR posting.

Where the invoice currency is different from Local currency, the accounting document craeted for IR for 3 ways match create generates 4 line items with KDM (MM related FX difference) with offsetting PPV posting (transaction PRD). The detail is as below.

Cr Vendor (translated at M rate in Local Currency)

Dr GRIR (translated at M rate in Local currency )

Dr MM related FX difference (KDM posting with value calculated between M rate and assumed rate  in local currency)

Cr Purchase Price difference (PRD) with the offsetting amount as KDM posting

Please advise me whether the above accounting document is correct. I am not really sure why the transaction creates both PPV and Exchange rate difference, which both appear in Material ledger.

Thanks in advance