Revenue recognition using historical exchange rate

[Former Member]

Hi all,

We have a request from users to have all non-USD Revenue Recognition be posted using the exchange rate used in the original invoice. For example, we have a Service contract with a customer for which we bill them in Dec 2006. The currency is EUR and in Dec 2006, the invoice was posted in USD with the Dec exchange rate. At this time, the posting is made to the Customer (AR) and to Deferred Revenue. We then run the Revenue Recognition program (VF44) monthly to recognize the revenue (debit Deferred revenue and credit Revenue). However, the Revenue Recognition posted in January, will use the Jan exchange rate, Revenue Recognition run in February, will use the Feb exchange rate, and so on. In this example, users would like to have all the revenue recognition be posted using Dec 2006 rate.

The only way we could think of is to create a user exit that will look at the original billing doc during the processing of VF44.

If any of you have had similar request and know a better way to resolve this, we would truly appreciate the input.

regards

Lanny

[Former Member]

Incidentally SAP library reads under the RR header (SD>Billing> RR)

Currency Differences

Use

The accrued revenues are kept in the document currency in revenue recognition. Due to different currencies, currency differences can arise for revenue recognition in Financial Accounting.

The currency differences should be shown in the profit and loss calculation. While the revenue accounts show the currency differences, the accrual accounts should be balanced in all currencies used.

Features

To eliminate currency differences on the accrual accounts, the system determines an exchange rate date that is used for revenue recognition and billing.

The system sets the exchange rate date when the sales document is created. If you update the data for sales document items, the system determines the exchange rate date again. The exchange rate date is redetermined as long as no revenues have been recognized or billing documents created.

As soon as the first billing or revenue recognition takes place, the date is fixed and used for the posting on the accrual account. For the revenue posting or posting to the receivables account, however, the current exchange rate date is used. The currency differences are determined in financial accounting based on this exchange rate date, and the required postings are made.

You can modify this system behavior by using special Business Transaction Events (BTEs).

I hope this clarifies.

Regards,

VO

[Former Member]

Incidentally SAP library reads under the RR header (SD>Billing> RR)

Currency Differences

Use

The accrued revenues are kept in the document currency in revenue recognition. Due to different currencies, currency differences can arise for revenue recognition in Financial Accounting.

The currency differences should be shown in the profit and loss calculation. While the revenue accounts show the currency differences, the accrual accounts should be balanced in all currencies used.

Features

To eliminate currency differences on the accrual accounts, the system determines an exchange rate date that is used for revenue recognition and billing.

The system sets the exchange rate date when the sales document is created. If you update the data for sales document items, the system determines the exchange rate date again. The exchange rate date is redetermined as long as no revenues have been recognized or billing documents created.

As soon as the first billing or revenue recognition takes place, the date is fixed and used for the posting on the accrual account. For the revenue posting or posting to the receivables account, however, the current exchange rate date is used. The currency differences are determined in financial accounting based on this exchange rate date, and the required postings are made.

You can modify this system behavior by using special Business Transaction Events (BTEs).

I hope this clarifies.

Regards,

VO

[Former Member]

Hi there,

Have a try with BTE 00503115: RR 'Set Xchange rate date'

Sample FM is SAMPLE_INTERFACE_00503115

[Former Member]

Hi All.

Does anyone know how this issue has been solved?

Thanks

Edited by: ErkanS on Apr 9, 2010 1:04 PM

[Former Member]

Issue is resolved.

[Former Member]

Hi,

Can you please tell us how you resolved this?

Thanks in advance.

Ajay

[Former Member]

Hey can you pls explain how this issue was resolved.i have a similar situation to be taken care of.Did you go for the BTE for exchange rates?or do we have any other option.

Appreciate your earliest response.

Thanks

Banu