on 07-05-2011 12:41 AM
Hi all can anybody help me...i am getting the following error when i am creating the GL ac for Vendor Recon ac,(only balance in local currency is selected) ...."Balances for reconciliation accounts only in local currency not defined" Message No fh061, however when i deselect the 'only balance in local currency' system is allowing me to save. should we not select 'only balance in local currency for recon accounts?'
Are all the balance sheet accounts should be maintained in Local Currency? if so in above why system is restricting me.
Detail explanation is well appreciated.
Thanks
Dear Harsh,
You will set this indicator only for those account for which you want to maintain the transaction only in company code currency. Like for example Equity account or Retained earning account.
If you set this indicator the transaction figures will be updated in the table only in the local currency and not in captured in any other currency i.e Document currency.
As transaction with customer and vendor can be done in any currency in the normal course of business it does not make any sense to set the recon account of customer and vendor to update in local currency only.
Therefore standard SAP functionality does not allow to check the balance in local currency option. This standard function will be explicitly stated in the F1 help documentation.
Hope it helps
Regards
Naveen
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Dear,
SAP has provided provision of keeping GL account balance both in local and transaction currency (transaction currency may be any currency other than local currency of your co code). When only balance in local currency is ticked for a particular (which is mostly recommended for GRIR clearing accounts) then all the transactions posted to it are converted to local currency figures in its line item and gets stored in table GLTO.
You should not keep Reconciliation Account GL master data on Balance in Local Currency Basis. When you uncheck this tick is system throwing any error message or simply a warning message? Please check and revert back. Please further note that you can change this tick in FS00 unless the balance in GL is null. Hope it will help you.
Regards
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F1 Help
Indicator: Only Manage Balances in Local Currency
Indicates that balances are updated only in local currency when users post items to this account.
Use
You would 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.
Procedure
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 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.
Makes Business sense as the customer an vendor accounts will have itmes with various currencies posted to it
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