Result Analysis Currency Conversion between Object & transaction Currency

[Former Member]

Hi Gurus,

I need your urgent help in figuring out the below scenario-

The business process is such that we create a contract and link a unique wbs element to the contract line item levels. So basically the contract currency derives the WIP values in KKA2 screns.

Now, the scenario is this-

We have a company code with currency INR, our controlling area currency is USD and user books expenses in INR for a wbs element/ contract that has been created for a currency JPY. 

So let's consider this, contract currency was JPY and the expense got booked on June 13th for 100 INR. KKA2 screens shows the COS as 100 INR and the converted JPY value for WIP.

Now, the problem is that the coversion is happening at the exchange rate of 31st may (previous period) and the posting happened in June, so this is causing a huge fluctuation in WIP values.

Let's assume 1INR on 31st May was equivalent to 80 JPY and the same 1INR was equivalent to 83 JPY on 13th June. 

So Values in WIP (which are being converted at 31st may's rates) will show WIP values as 8000 JPY (100*80), now this 8000 JPY will convert back to object currency and controlling area currency (conversion this time happening at the posting date rates). So basically this time it will come up as 8000/83 INR = 96.385 INR basically business wants to understand this difference in 100-96.39 INR.

Can some one please hekp, this is very very urgent.

Regards

Anmol 

Message was edited by: Mohamed Rafi

[Former Member]

Look at SAP Notes 485405 and 201445 for information on currency conversions during RA and settlement.

[former_member203098]

as you said, contract currecny is in JPY means-planned revenue/actual revenue,
Expenses booked in INR means - actual cost and controlling area currecny is USD.

So, when you run RA system caluculates WIP in controlling area currecny (group currency) by considering the exchange rate type from maintain versions in spro.
controlling--general controlling--organization--Manitain verison--select the verison and click on the setting
for each fiscl year. maintain the same exhcnge rates type that you are using in FI.

Please discuss further with CO consultant.

regards,