Exchange Rate Differences And Conversion differences

[Former Member]

Hi good people,

I need some consulting help on the use of the Exchange Rate Differences And Conversion differences functionality in business one.

From what i've read,

Exchange differences is used to correct the LC against the FC in a multi currency BP and or GL Account usually on a monthly basis.

Conversion Differences is then used to convert/correct the SC against the corrected LC after running the exchange differences.

Both of these programs, run/correct/convert against the prevailing Exchange rate on date of execution as in the Exchange Rate table.

My problem is that i have a client using LC - Kenya Shilling (KES) and SC - US Dollars (USD), Exchange rate is updated/changed Daily and fluctuations occur all the Time.

Most BPs are USD (Foreign Currency) and as such, Exchange Rate and Conversion Differences are run every month. With postings made to the configured P&L accounts.

This accounts have over the years accumulated lots and Lots of amounts - which i guess is expected.

The first problem is that the P&L accounts due to the nature of Conversion difference Postings (SC JE posting Only, NO FC and/or FC Entry) Only is off. In that the SC and LC rate is very wrong.

This as a result affects the P&L reporting if the company would like to do reports in both LC and SC - They do not Match (conversion/Exchange Rate) with Low USD Profit as compared to higher KES profit.

This cannot be corrected by running either Exchange Rate/Conversion Differences as this functionality is for Balance Sheet Accounts only.

The second Problem/query is - Are the Exchange Rate/Conversion Differences supposed to revalue/calculate all transactions since DB/Company Begin as opposed to the month transactions as this process is done monthly. Is there any way of restricting entries to be evaluated

If my general understanding of the problem/function(s) may be incorrect - Please clarify

Your assistance will be greatly appreciated!

Edited by: Claudio Maragia on Sep 23, 2008 3:16 PM

[Former Member · Accepted solution]

With this version, you probably have very few options to reduce your headache.

Thanks,

Gordon

[Former Member · Accepted solution]

Gordon,

When you say

"With this version, you probably have very few options"

Does this mean with SAP B1 2007 the same problems are not there.

Please say its so and i'll upgrade immediately as I'm experiencing the same problem as the one described above by Claudio

We use one exchange rate per month. We have BP accounts whose currency is Multi Currency this is where the customer would pay either in LC (KES) or SC (USD).

The problem occurs when running conversion differences, the journal entry to the unrealized exchange gain\loss is one-sided i.e. only the SC currency is posted.

This leads to both the P&L and the Trial balances being wrong.

Thanks in advance for any assistance

Regards,

Michael Mbiyu Itotia

[Former Member · Accepted solution]

Hi Michael,

I am also facing the same problem, but we are using 2005B version.

Has ur problem resoved and how it done, can please suggest me.

I will be greatfull to you.

Regards

Shanker

[Former Member]

Hi,

I also face the same problem as you guys, The SC rate amount are differ from the LC amount please help.

FYI, I'm using SAP B1 2005B PL 44

Regards,

[Former Member]

Hi Claudio,

A short question: what is your B1 version and PL?

Thanks,

Gordon

[Former Member]

I'm using SAP B1 2005 A SP 01 Patch level 29 on MSSQL 2005

[Former Member]

Check if this EES on Exchange Rate helps you

[https://websmp201.sap-ag.de/~sapidb/011000358700000141342007E/Exchange_Rate_16_2_07.pdf]

[Former Member]

Thanks Sridharan,

Though the document Exchange_rate_16_2_07 only gives details about use of various currencies in SAP Sales/purchasing Order processing and not on the Exchange Rate/Conversion differences programs.

Thats where my headache lies