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BP (is Vendor and also Customer) reconciliation

Former Member
0 Kudos

Hi Experts,

I am an user of SAP B1. I tried the internal reconciliation for BP who is both Customer and Vendor. The function is working. But the multicurrency has problem.

Here is the detail of my testing: trade in USD, local currency is CAD, System currency is USD.

AR in#101195 amount $600.00USD(FC), $757.08CAD(LC), Ex Rate:1.2618

Two AP transactions: In#102865 is $594.00USD(FC), $653.40CAD(LC), Ex Rate:1.1, In#102863 is $495.00USD(FC), $624.59CAD(LC), Ex Rate:1.2618

The reconciliation like below on April 7, 2009, Ex Rate:1.2

Origin Origin No. G/L Acct/BP Code Ref. 1 Due Date Amount Applied Amount

PU 102865 VTest 102865 4/3/2009 CAD (653.40) CAD (653.40)

IN 101195 CTest 101195 4/6/2009 CAD 757.08 CAD 757.08

PU 102863 VTest 102863 4/6/2009 CAD (624.59) CAD (103.68)

From USD amount AR in#101195 $600.00USD, reconciled AP in#102865 $594.00USD. There is only $6USD difference. But after reconciliation system took $82.17(103.68/1.2618, reconciled amount/AP In#102863 ex rate) out of AP In#102863. This is only for $600USD reconciliation.

The total reconciled FC is $682.17USD. Total reconciled SC is $630.90USD(757.08/1.2). The Should Be amount is $600.00USD.

Could you please help to find a solution?

Accepted Solutions (1)

Accepted Solutions (1)

kvbalakumar
Active Contributor
0 Kudos

Check this link, it may be useful

[https://wiki.sdn.sap.com/wiki/pages/viewpage.action?pageId=69861411]

Regards,

Balakumar

Former Member
0 Kudos

Hi Balakumar,

Thank you for the reply.

My problem is not the how to reconcile. My problem is I have three different numbers after reconciliation. FC, SC should be the same $600USD.

Could you help with this please?

Ben

JesperB1
Advisor
Advisor
0 Kudos

Hi Ben,

A multi currency BP reconciles in Local Currency, for the system it does not really matter that the SC anf FC happens to be the same, they follow different principles.

Which version are you using, 2005 or 2007?

Let us know.

Jesper

Former Member
0 Kudos

Hi Jesper,

Thank you Jesper for replying.

Our version is 2007A PL 47.

FC, SC are the same currency in our case. After reconciliation $600USD(FC) in the AR took $676.17USD(FC) in AP.

I believe it should be the same $600USD in AR, AP.

Thanks,

Ben

JesperB1
Advisor
Advisor
0 Kudos

Hi Ben,

I see. Still, the functionality of a Multi Currency BP is that when reconciling it will only look at Local Currency for this to balance.

A Multi Currency BP can do transactions in all currencies, however, again, when reconciling it is only Local Currency applied amounts that must balance. The Foreign Currency in this case will not balance.

The expectation is wrong, should the BP be a single Foreign Currency BP (only USD) the expectation would be correct, the BP would then reconcile in FC and the Local Currency would be adjusted with an Exchange Rate posting, no such correction can be done in this case. (exchange rate differences is posted in Local Currency, not FC)

I hope it is somewhat clear.

Jesper

Former Member
0 Kudos

Hi Jesper,

Thanks for the clarification.

It seems I cannot use this function if I want FC to be balanced in our setup. Could you recommend some alternative ways please?

Thanks,

Ben

JesperB1
Advisor
Advisor
0 Kudos

Hi Ben,

If this BP only works in USD create it as USD instead of Multi Currency BP.

It is also possible to do manual JE in FC only, however, I would advice against this way of working for different reasons. 1 is that if you run exchange rate differences the system will suggest a correction for those entries, another is that in the end, if you use more than 1 currency, meaning not only USD, the foreign currency column will not have any meaning. It will not add 10 Euros + 10 USD + 10 Mexican Pesos. (1 apple + 1 banana <> 2 pineapples)

Alternatively if you use Local Currency and USD there will be postings in LC only and the total of the foreign currency column will not match up to the LC.

I hope it all makes sense.

Jesper

Former Member
0 Kudos

Hi Jesper,

Thank you for all your help.

I really want to keep in touch with you.

Thanks,

Ben

benzh crystalintl.com

Answers (0)