OBY6 Forex rate settings

[SAP_Noob]

Hi All,

I had a question about configuration of company in OBY6 regarding the option of "No exch. Rate diff. when clearing in LC". How does this work exactly?

Hypothetical example of document in foreign currency being cleared in LC:

Company A in India imports goods worth 1,000 USD when exchange rate is 1 USD=80 INR. AP would be posted at INR 80,000.

At the time of payment if the rate changes to 1 USD = 85 INR, 85,000 INR would be required to clear the invoice, leading to an exchange loss of 5,000 INR. 

If the above option in OBY6 is enabled, will this exchange loss not be posted? If so, why would this be required as it is against GAAP requirements.

Thank you!

[sanilbhandari]

Hi @SAP_Noob 

If this check box is maintained, than the local currency amount is used as the amount for clearing and not exactly the same as your example. The SAP help documentation for the same explains the functionality.

Thanks & regards

Sanil Bhandari