How to define accounts for exchange rate differences

How to define accounts for exchange rate differencesYou can define your general ledger account as a exchange rate difference account through transaction code OB09 or by following the path;

SPRO > Financial Accounting > Accounts Receivable and Accounts Payable > Business Transactions > Outgoing Payments > Outgoing Payments Global Settings > Define Accounts for Exchange Rate Differences

Before defining the account as a exchange rate differences account you need to create the general ledger account by transaction code FS00 and then assign it here.

Click on New Entries to assign the general ledger accounts.

On the new entries screen you enter following details under your chart of accounts;

  • G/L Account field is to be entered with the Accounts Payable or Receivable account for which you are creating this exchange rate difference.
  • Loss: enter the General ledger account for exchange rate loss realized (losses resulting from the exchange rate fluctuation are posted to this account while clearing open items in foreign currency)
  • Gain: enter the General ledger account for exchange rate gain realized (Gains resulting from the exchange rate fluctuation are posted to this account while clearing open items in foreign currency)
  • Val. Loss 1: enter the unrealized loss G/L Account to be used on revaluation of open items. (Losses due to foreign currency valuation of open items posted to this account)
  • Val. Gain 1: enter the unrealized gain G/L Account to be used on revaluation of open items (Gain due to foreign currency valuation of open items posted to this account)
  • Bal. sheet adj.1: enter a G/L Account to post the receivable and payable adjustment during currency valuation of open items. (G/L Account to which the adjustment of receivables and/or payables are posted during foreign currency valuation)

To configure the exchange rate difference account for accounts payable you need to enter the general ledger accounts created for accounts payable.

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