Treatment of Exchange Rate during Goods receipt

[Former Member]

Hi All,

May i request your assistance in sorting the below issue?

I need a confirmation on the entries when GR is done with exchage rates differences. In my understanding, the entries are followed as mentioned below:

Inventory account Dr

To, GR IR clearing account Cr

and Unreleased gains / loss a/c (Dr or Cr)

SAP is already posting the above mentioned entry.

Now, My client has come back with a differnce entry where according to him the entry should not hit Unreleased gains/loss but should hit Relaease Gains/loss.

i.e.,

Inventory A/c Dr

to, GR IR clearing a/c Cr

qand released gains / loss a/c (Dr or Cr)

Could anyone please confirm which entry is correct?

If the seconf is correct, I would like to know how this can be configured in SAP.

Regards,

MG

[Pushpa1]

Hi.. you mentioned above the GR doc is posting exchange gain/loss. We want this posting to be created but as of now system is not creating gain/loss posting at GR. Do u know if there is any specific setup required to make this work

[Former Member · Accepted solution]

Hi Mallikarjuna,

At the time of GR entry, neither realised nor unrealised exchnage gain/loss is posted. It would pick up the exchnage rate from p.O. if it is marked as fixed in the P.O. or from TCURR table(transaction code-OB08), if exchnage rate is not fixed in the P.O..

The exchnage rate difference account is posted at the time of MIRO and this difference is the difference between MIGO and MIRO rate if any..

Relaised gain/Loss posting : This arises when you actually make payment to a Vendor or post collections from customer and this is called realised gain/loss, because this is the final rate at which you either make payment or collect or say the rate at which your books of accounts are actually posted.

Unrealised Gain/Loss posting : At the end of the month/Qtr/Year, if any transaction in currency other than your company code currency is in open item status, then a revaluation is carried out to revalue the liabilities/assets with that date exchnage rate and then unrealized gain/loss is posted and this is usually reversed at the beginning of next period( Reversal or not depends on whether you have activated delta logic or not). This is to give a true & fair picture of books of accounts of all Assets/Liabilities.

Hope this helps and if this is not your question.. please clarify further

BR,

Kavita