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SC and LC Diffrences

Dear Experts,

  I have a situation here where the SC and LC figures have very wrong . In the P&L the conversion rate between them is either inflated or deflated and never close to a realistic figure. After close scrutiny I have discovered that the conversion differences account has no corresponding LC values and this account is bringing about the problem.  What am I missing in terms of  process set up as I believe there should be a corresponding LC figure to offset the SC figures.What is the best way to resolve this anomaly ?

I am currently on SAP Version 9 PL 04.


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