Can Someone Explain Purchase Order Fixed Exchange Rate and Relationship to Group Currency?

[john_little]

A business client has asked me to provide a way to "fix" the exchange rate, in a purchase order, between transaction currency and group currency.  Can anyone explain how this might be done?

Here is the scenario.  This is a real scenario - I have just changed the currency codes.  Suppose the following:

TTT = transaction currency.  This is the currency of the purchase order itself

LLL = local currency.  This is the currency of the company code in which the purchase order is posted

GGG = group currency.  This the system wide currency in which all documents post (accounting documents show this as "local currency 2")

Now suppose buyer creates a blanket PO (doc type FO) using transaction ME21N for 10,749,231.93 TTT.  In the PO the buyer sets the exchange rate to 3.39560 and clicks the "fixed" check box.  The buyer completes and saves the order.

On the date that the order is created, an "M" exchange rate LLL:GGG is established -- 0.31158

Now suppose you display the order using transaction ME23N and choose Environment>AC Commitment Documents.

The value of the order in currency LLL is 36,500,091.94 (that is, 10,749,231.93 TTT times 3.39560 LLL/TTT equals 36,500,091.94 LLL).

Now look at the value of the order in GGG.  The value is 11,372,698.65 GGG (that is, 36,500,091.94 LLL times 0.31158 GGG/LLL equals 11,372,698.65 GGG)

The client understands that in the purchase order, the "fixed" exchange rate feature handles the relationship between TTT and LLL. 

However, the client does not want the relationship between LLL and GGG to fluctuate.  On a per-purchase-order basis, the client wants to "fix" not only the relationship between TTT and LLL but also between LLL and GGG.

Given that the "M" rate changes on a daily basis, it is conceivable that the buyer could create another order for exactly the same amount in TTT, on a different date, and further could "fix" the rate at 3.39560, and STILL get a different valuation in group currency GGG.

Is there a way I can tell the purchase order, when it creates the commitment document, to use a "fixed" rate for LLL:GGG?

John Little

Hershey Company

[Former Member · Accepted solution]

Hi,

If you fix the exchange rate in the PO it will not take into consideration any changes in the exchange rate after PO Creation and all following documents will be posted with the same exchange rate.

On the other hand if you do not fix the exchange rate, it will always go into OB08 to check the exchange rate and will post accordingly. However you can configure the system in a way that, the exchange difference can hit the material or can go to difference GL Account.

[john_little · Accepted solution]

Khurram

Thanks for the reply.

I agree that clicking "Exch.Rate Fixed" (field KUFIX) in transaction ME21N will lock in the exchange rate from document currency to local currency.  However, the exchange rate between local currency and group currency floats according the daily rate maintained in transaction OB08.  We load new rates, once a day.  So, a purchase order created on, for example, July 1, 2013 will create commitment in TTT and LLL at a fixed exchange rate, but the amount in GGG will be derived from "M" rate in OB08.  Further, a PO created on July 2, 2013 for exactly same amount in TTT will have exactly same amount in LLL when looking at commitment.  However, amount in GGG will be different because "M" rate changed on July 2.

I'd like to find out if it is possible to "fix" the exchange rate from LLL to GGG so that each time the client creates a PO, the amount in GGG can be controlled.  In other words, can SAP use a different rate, in a PO, other than the "M" rate?

John Little

Hershey Company

[BijayKumarBarik · Accepted solution]

Hi,

Exchange rate maintained in t.code : OB08  or  t.code : S_BCE_68000174  with exchange rate type.

During purchase order creation, the purchase order picks exchange rate type which is assigned to your company code in t.code:OB22.

If needed by you and by your business - you can create different exchange rate types and maintain Exchange rate each exchange rate type in t.code : OB08 
Exchange rate type----------Transaction Process
ZP --------------------------------- Purchase order
ZR------------------------------------Goods Receipt
ZI---------------------------------------Invoice Receipt

Use t.code: OB22 and assign exchange rate type ZP which is assigned to your company code and save.
Use t.code: OBA7 and assign exchange rate type ZR to WE document type and save.

Use t.code: OBA7 and assign exchange rate type ZI to RE document type and save.

Now go for transaction process of creating new purchase order, goods receipt WRT purchase order, invoice receipt WRT purchase order and find the difference how different exchange rate posted with each transaction.

Regards,

Biju K

[Former Member · Accepted solution]

Hi John,

Check Note 335608

Though its for the same currency but it might will give you insight or clue for start.

Could you also do one thing for us, could you share the screenshot from FI documents for GR where you are getting the differences.

Khurram

[john_little · Accepted solution]

Biju,

Thank you for the explanation.  I now understand that I could create a new exchange rate type "new type", and assign exchange rate from TTT to LLL and LLL to GGG.  Further, that I could choose to never create new exchange rate entries.  Then, I could go into OB22 and assign 2nd local currency, currency type 30, to have exchange rate type "new type".  Then any posting I make would post into group currency always at the same rate.  Further, this would affect ALL postings, whether PO, non-PO, journal entry, etc.

I guess it is not possible to affect group currency amount for a specific purchase order, short of introducing a user exit to ME21N.

John Little

Hershey

[Jnunez99 · Accepted solution]

Hola, lograste solucionar esto. ?