Exchange Rate difference at GR

[fortian]

Dear experts,

We are working with PO with account assignment and with moving average price (MAP) materials.

The exchange rate at the GR is different to the exchange rate of the PO but we would like to keep the same.

Setting the "Exchange Rate Fixed" indicator is not a solution as we want see the exchange rate differences at the invoice.

How could we set the exchange rate at the GR as the exchange rate of the PO?

[former_member187965 · Accepted solution]

Hi,

In the standard business practice, the exchange rate of the PO and exchange rate at GR will never remain same. The reason is, suppose you have created PO in Apr and at that time the exchange rate was 44 and after 2 months i.e. in Jun, you received the material and at that time the exchange rate was 47, then as per the accounting standards the inventory should be valuated at exchange rate 47 and not at 44.

Suppose you have posted GR with exchange rate 47 and invoice is posted in the next month at this time the exchange rate was 48. Then in MIRO, you will get the exchange rate differences gain/loss depending upon the exchange rate fluctuations.

In the standard SAP system, without using 'Exchange rate fixed' indicator in PO, you will not get the same exchange rate at GR. You have to use enhancement in GR which will validate the exchange rate maintained in PO with the exchange rate maintained in OB08. But still i think you should go with the standard system.

[fortian · Accepted solution]

Thanks Shailesh Kurdukar for your insight.

At least could we post the exchange rate difference to a different G/L Account at the GR? (Remember we are working with PO with account assignment and with moving average price (MAP) materials.)

Thanks again for your time.

[former_member187965 · Accepted solution]

Hi,

Suppose you have activated exchange rate fixed indicator in PO and the exchange rate entered is 44. Now, the GR is posted in the next month and at that time the exchange rate maintained in OB08 was 46. Then in GR the inventory valuation will happen at exchange rate 44 and the difference (46-44) will be posted to the exchange rate difference gain/loss account.

If the exchange rate fixed indicator is not activated in PO then during GR system directly picks exchange rate from OB08 for inventory valuation and there will not be any exchange rate differences.

Exchange rate difference will occur at invoice posting, when you post GR and MIRO in different months. At that time system compares the exchange rate in GR with the exchange rate in MIRO and if there is any difference found then it is posted to the exchange rate gain/loss account.

Go through the following link,  http://scn.sap.com/thread/1334619,

Also go through the below SAP documentation which explains the exchange rate difference scenario with example,

http://help.sap.com/saphelp_46c/helpdata/en/b4/db1b88350511d38a700000e83234f3/frameset.htm

[fortian · Accepted solution]

Dear Shailesh Kurdukar,

What you explain is correct when you are purchasing to stock. But, if the purchase order has an account assignment, to a network for example, and you activate the "exchange rate fixed" indicator in PO at the GR the accounting document uses the exchange rate of the PO.

If you do not activate the "exchange rate fixed" indicator at the GR the accounting document uses the exchange rate from OB08 and post all the amount to the expense account (not to the exchange rate difference gain/loss account). We would like to post the exchange difference to a different G/L account.

[former_member187965 · Accepted solution]

Hi,

Go through the below links,

Note 980402 - KDM for POs with account assignment, MA price material

http://help.sap.com/saphelp_erp60_sp/helpdata/en/45/5c4a52eedd2f95e10000000a155369/content.htm

[former_member187965 · Accepted solution]

Hi,

The difference amount is posted to the exchange rate difference account in GR accounting document. The accounting entry will be, KDM...Exchange rate diff a/c to PRD....Price difference a/c.

You will get the above accounting entry only if you have activated exchange rate fixed indicator in PO. If exchange rate fixed indictor is not activated in PO then system will never post the entry to KDM-Exchange rate diff a/c because system will directly pick the exchange rate from OB08 for that period.

In you case, as you don't want to activate the exchange rate fixed indictor in PO, also you are creating PO with account assignment and material price control is V, then you will never get the exchange rate differences at GR.

In OBYC, maintain the account for KDM key. If there are differences in exchange rate between GR and invoice posting then at invoice posting you will get the exchange rate difference amount is posted to the account which is assigned to KDM key.

[fortian · Accepted solution]

Dear Shailesh Kurdukar,

We had already read the note 980402, so we set the "Treatment of Exchange Rate Diffs. in Company Code Currency" indicator for our company code (view V_169P_PK). Setting this indicator made a difference at invoice not at goods receipt posting the exchange rate difference to the account assigned to the KDM key.

I guess the conclusion is that there is no way of getting the exchange rate difference to the account assigned to the KDM key at Goods Receipt for purchase orders with account assignment and with moving average price (MAP) materials.

[BijayKumarBarik]

Hi,

Concept for exchange rate: System to picks exchange rate from document type (OBA7) and if exchange rate type not there in document type, then system search and picks exchange rate for exchange rate type which is maintained in OB08 t.code.

As you need different exchange rate in invoice other then PO and  GR , then create a new exchange rate type( ZI) in OB08 t.code ,have exchnage rate  and assign exchange rate type( ZI) to RE document type in t.code: OBA7 and save.

Now create a fresh PO,system  picks exchange rate from OB08 as with exchange rate type M and do GR,System  picks exchange rate from OB08 as with exchange rate type M but during invoicing(MIRO),System  will picks exchange rate from RE document typw which is with exchange rate type ZI

Regards,

Biju K

[fortian]

Dear ,

Thank you for your insight but that's not exactly our requirement. Sorry if I was not clear enough.

It's OK to have the same rate type M on PO, GR and IR but on PO and GR we wanted to have the exact same exchange rate no matter if the GR was posted 1 month later.

told us it wasn't a good idea to do so. So we ask to at least post the exchange rate difference (between the PO and the GR) to a different g/l account. What seems not to be possible as we are working with purchase orders with account assignment and with moving average price (MAP) materials. Do you agree?

Thanks for your time.

[fortian]

Before closing this thread I would like to clarify something. Note 980402 says:

If the CCCurr indicator  (V_169P_PK-KDHW) is set, this activates a new logic for calculating the  exchange rate difference (KDM amount) in the company code currency  (first local currency). As a result, the system also generates KDM lines  for purchase orders with account assignment and for purchase orders with  MAP materials in inventory management and in invoice verification if  required.

What do we understand by "inventory management"? In our system, after setting the indicator, KDM lines are only generated at the Invoice verification not at the Goods Receipt.

Could any expert tell me if is the correct behaviour? or should we be able to get the kdm lines in at the goods receipt too?

Thanks in advanced.

[Former Member]

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