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Forex Exchange Tolerance Limit

former_member325328
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Dear Experts,

Can you please let me know, where I can see the option for Forex exchange tolerance?

I can see tolerance for clearing but not for Forex exchange.

Requirement-

As exchange rates changing on daily basis so we need tolerance limit for that forex.

Example - Today we created customer invoice at exchange rate of 1 Dollar = 63.5 Rupees. Now when customer is paying the amount then on that day rate is 1 Dollar = 63.3 Rupees.

So the difference in exchange rate is 0.2 only, which is minor. So we are looking for tolerance limit which should apply to such cases.

Thanks & Regards,

Sujeet Kumar

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Answers (1)

Answers (1)

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Hello Sujeet,

There is no specific activity for Foreign Exchange Tolerances. You can use Clearing Strategies for all the cases. Business Configuration work center > Activity: Clearing Strategies> Here you can maintain Manual Clearing Tasks also for Overpaid/Underpaid for all the cases.

for example: Supplier/Customer Invoice for 100eur at exchange rate 0,80eur to USD (on 17.08). Then the exchange rate is changed to 0,85 on 18.08. If the user creates a new outgoing bank transfer with document date 17.08, referencing the SIV, the payment will be set to 80 USD. If the document date is set to 18.08 the payment amount will be set to 85 USD.

The user could reference the item on the payment and select a document date of 18.08 and want to pay only 80 and not 85usd. In this case they select the SIV and add 'other discount' of the amount of 5 euro and attribute to exchange rate difference. This is where the Business Configuration setting for threshold of under/overpayment comes in. It covers all reasons, not just currency exchange rate differences.

Hope this will answer your query.

Regards,

Annapurna