8 Replies Latest reply: Oct 17, 2014 3:42 PM by Gouse Peer Noornaik RSS

Only balance in local currency

Ramesh GV
Currently Being Moderated

Hello Sap Gurus,

 

What is the purpose of check box seleted "Only balances in local Currency" in GL-Company code data?

 

What type of accounts we must selet or What type of accounts we must not select this check box?

 

Please give me the solutions of above questions and tell me how Can I assign points ?

 

Thanks in advance

 

REgards

 

Ramesh G

  • Re: Only balance in local currency
    bharathi s
    Currently Being Moderated

    Hi Ramesh,

     

    SAP rcommends strongly that when you create a new company code,

    you set its Local Currency as the currency of the country in

    which it is sited. So if you (as an Indian head office) create a

    new company code in (say) the US, you would give that new

    company code Local Currency USD.

     

    Then in your Controlling Area definition, you need to make sure

    you have the following settings: Assignment Control = 2 (allow

    cross company code postings); and Currency Type = 30 (group

    currency).

     

    Finally you must set up all your company codes to use Group

    Currency INR. This will ensure that a) each individual company

    code can operate in and report in their local currency; and that

    at the same time your head office can report all company codes

    in INR (group currency).

     

    Bharathi

  • Re: Only balance in local currency
    Ramesh GV
    Currently Being Moderated

    Hello Bharati,

     

    I am not getting the clarification of this issue. I am asking for Only balance in local currency check box If I select what happend if not what happend? Which scenario we use this check box and for what accounts.

     

    I already seen in sap help I am not getting clarification please tell me.

     

    Regards,

    Ramesh

    • Re: Only balance in local currency
      RADEN RORO Lily Chandrasari
      Currently Being Moderated

      It is related to cash journal GL account.

      If you want to run several cash journals with different currencies in this account, make sure that the indicator Balances in local currency only is not set, The account currency corresponds to the company code currency.

       

      Hope it helps

       

      Lily

    • Re: Only balance in local currency
      SARAVANAN ALLIMUTHU
      Currently Being Moderated

      HI Ramesh,

       

      This indicator indicates that balances are updated only in local currency when users post items to this account.

       

      You can set this indicator for accounts in which you do not want the system to update transaction figures separately by currency.

       

      Setting this indicator for accounts managed on an open item basis affects the clearing procedures. See the example below.

       

      Set the indicator in cash discount clearing accounts and GR/IR clearing  accounts. It cannot be set in reconciliation accounts for customers or  vendors. Setting it in all other instances is optional.

       

      It is usually set for particular balance sheet accounts including:

       

      Accounts which are not managed on an open item basis and not kept in foreign currencies.

       

      Accounts which are managed on an open item basis and have the same types of items posted in different currencies, but always allow clearing to be made if the local currency amounts correspond.

       

      Examples

       

      You set up a clearing account for goods receipts and invoice receipts and manually post these items to it. You post invoice receipts in the invoice currency and goods receipts always in the local currency.

       

          Invoice receipt            1000 DEM       600 USD

          Goods receipt                                  600 USD

       

      Both items can be cleared if the clearing account balances are recorded in local currency only. If you have not set the indicator for this account, the system will translate DEM to USD during the clearing procedure in order to determine the amount in USD required to clear 1000DEM. If the translation rate is .65 USD per DEM, then the system displays 650 USD for the invoice receipt and 600 USD for the goods receipt when the open items are processed.

       

      This means that to clear both of these items, you will also have to enter a difference posting for 50 USD, and the system will automatically  make an additional exchange rate difference posting for this amount.

       

      Hope it clears your doubt

       

      Regards

       

      A.Saravanan.

    • Re: Only balance in local currency
      Siwar TALEB
      Currently Being Moderated

      Hi,

       

      The Indicator "Only Manage Balances in Local Currency” set for the account in the master record indicates that balances are updated only in local currency when users post items to this account.

       

      The total table (GLT0 / FAGLFLEXT) is filled only in local currency.

       

      Regards,

      Siwar

  • Re: Only balance in local currency
    Jyostna Pathi
    Currently Being Moderated

    Hi,

     

    When this option is selected, the balance of that particular account will display the balances only and only in local currency even though it has transactions dealing with foreign currency. Simply speaking, that account balance does not display total of the foreign currency.

     

    The indicator must be set in cash discount and GR/IR clearing accounts.

    It must not be set in reconciliation accounts for customers or vendors.

    The indicator is usually set in balance sheet accounts that are not managed in foreign currencies and not managed on an open item basis.

     

    "transaction figures are only managed for amounts converted to the local currency."

    For example, here INR is local currency.

    Documents      INR     USD    AUD    EUR
    Doc 1         500.00   12.00          
    Doc 2      1100.00          30.00     
    Doc 3         800.00               16.00
    Balance    2400.00   NoDisp  NoDisp  NoDisp

     

    Hope it clears

    Regards

    Jyostna

  • Re: Only balance in local currency
    Gouse Peer Noornaik
    Currently Being Moderated

    HI Ramesh,

     

    I hope the below Example will give better idea on why do we check the indicator "Balance in Local Currency"

     

     

    You set up a clearing account for goods receipts and invoice receipts and manually post these items to it. You post invoice receipts in the invoice currency and goods receipts always in the local currency.

     

    Invoice receipt            1000 DEM       600 USD
    Goods receipt                                     600 USD

     

    Both items can be cleared if the clearing account balances are recorded in local currency only. If you have not set the indicator for this account, the system will translate DEM to USD during the clearing procedure in order to determine the amount in USD required to clear 1000 DEM. If the translation rate is .65 USD per DEM, then the system displays 650 USD for the invoice receipt and 600 USD for the goods receipt when the open items are processed.

     

    This means that to clear both of these items, you will also have to enter a difference posting for 50 USD, and the system will automatically make an additional exchange rate difference posting for this amount.

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