Payments in foreign currency

[Former Member]

hi

when payments made for foreign currency transactions, what postings are made to balnce sheet adjustment account for foreign vendor? how is this account adjusted after payment is made so that true reflection of vendors can be reported.

tx

[Former Member]

hi all

tks for quick response. when the invoice is paid and cleared, what happens to the postings that would have been made to bal. sht adj. account for that invoice now that it has been paid? i know no manual adjustment needs to be made. this is ecc 6.

[Former Member]

Hi,

When the revaluation program is run (normally during month end), the foreign currency transactions will get revaluated and the loss/gain gets posted to the B/S adjustment account.

If the program, in the above step, was run with the "Reverse posting" indicator marked, the documents created in the above step would be reversed automatically on the 1st day of the next month. Thus the adjustment account gets set off.

If the "Reverse posting" indicator was NOT set, then during the invoice payment, the adjustment entry (from the first step) gets reversed. In the payment document you can find an additional entry that sets off the B/S adjustment account.

Hope this helps.

Regards,

Mike

[Former Member]

Hi

I suppose you have an open invoice in foreign currency

1) When this invoice is selected and paid, then system would automatically recognize and post any forex gain/loss based on the current exchange rate and the rate on date of invoice

2) If at period end the invoice is still open, then by running the foreign currency valaution transaction in F.05, system would temporarily recognize forex gain/loss and post to a b/s account maintained in OBA1-KDF

Thank You,

[Former Member]

Dear ,

there is no need to pass any adjustment jv for that. when u process the outgoing payment system automatically adjuste the difference values to Foreign loss/gain account.

when u run the Foreign valuation at the time of period end system post difference values to B/S account

(it mean Gain -Loss Account)

Regards

radha

[Former Member]

Hi,

The account will be adjusted through Gain or Loss from currency exchange rate differences, with the difference the vendor report will be generated.

Regards

Sudharsan.R