Summary -

In this topic, we described about the below sections -

Due to instabilities in exchange rates, exchange rate gains or losses may occur when clearing open items in foreign currency. The SAP system automatically posts the exchange rate differences to the revenue or expense accounts.

The accounts need to be configured to post these differences. Exchange rate profit or loss is posted to a distinct expense or revenue account for exchange rate variances. It is possible to assign one gain or loss account per currency and currency type.

Define Accounts for Exchange Rate Differences: -

Below process is to define account 567890 for the exchange rate differences.

Step-1: Enter the transaction code OB09 in the SAP command field and click Enter to continue.

Accounts for Exchange Rate Differences

(OR)

Enter the transaction code SPRO in the SAP command field and click Enter to continue.

Accounts for Exchange Rate Differences

Click on SAP Reference IMG.

Accounts for Exchange Rate Differences

Expand SAP Customizing Implementation Guide → Financial Accounting → General Ledger Accounting → Business Transactions → Open Item Clearing→ Define Accounts for Exchange Rate Differences. Click on Execute.

Accounts for Exchange Rate Differences

Step-2: In the next screen, enter the Chart of Accounts and click on right mark to proceed.

Accounts for Exchange Rate Differences

Step-3: In the next screen, select activity New Entries on the application bar.

Accounts for Exchange Rate Differences

Step-4: In the next screen, enter the below details.

  • G/L Account – Specify the GL Account
  • Currency – Specify the posting currency
  • Currency Type – Specify the Currency Type from the list
  • Loss – Specify the G/L Account to post loss.
  • Gain – Specify the G/L Account to post gain.
Note:The account number used above should be created under the same chart of Account provided. Otherwise, it will throw an error “No Account created under the chart of Account (COA-name)
Accounts for Exchange Rate Differences

Step-5: Once all the details entered, click on the Save button to save the changes.

Accounts for Exchange Rate Differences

Step-6: It prompt for the Change Request. Create/Select the change request and Click on right mark to proceed.

Accounts for Exchange Rate Differences

Step-7: Status bar displays the below message once the account for exchange rate differences defined successfully.

Accounts for Exchange Rate Differences

Technical Information: -

  • Transaction Code: - OB09
  • Navigation path: - SPRO → SAP Reference IMG → SAP Customizing Implementation Guide → Financial Accounting → General Ledger Accounting → Business Transactions → Open Item Clearing→ Define Accounts for Exchange Rate Differences