Exchange Rate Differences 

Use

Exchange rate differences occur when you issue an invoice in a foreign currency, and the exchange rate has changed by the time your customer pays the invoice in Argentine pesos. You use the Exchange Rate Differences report to create:

·        Debit memos

In this case, the exchange rate has changed to your benefit, and in the local currency you receive more than the original invoice amount. By law you must calculate this gain and pay any tax due, which you generally collect from your customer.  

·        Credit memos

In this case, you report a loss due to the change in exchange rate.  

·        Related clearing documents

When you create debit memos for your customers, the system creates the corresponding open items. This report clears these open items, based on your posting parameters.

Prerequisites

Your system is configured in such a way that exchange rate differences are posted to a separate G/L account.

Features

The report reads exchange rate entries that the system creates automatically during the payment clearing process. It creates debit/credit memos as well as the subsequent clearing documents, based on the specified posting parameters.

If you have introduced mandatory fields in documents, you can include these in the debit/credit memos and clearing documents created by this report; see SAP Note 575709 and related Notes for details.

Activities

To access the report, from the SAP Easy Access menu, choose Accounting ® Financial Accounting ® Accounts Receivable ® Reporting ® Argentina ® Exchange Rate Differences.

Selection

On the report selection screen, you need to specify:

·        The G/L account to which exchange rate differences have been posted

·        Posting parameters for the debit/credit memos to be generated

¡        Document type

¡        Posting keys for debit and credit memos

Enter posting keys for the customer account and G/L account. The resulting memo will include one customer line and any number of G/L lines, based on the number of tax codes involved.

¡        G/L account that the exchange rate difference gain or loss is to be posted to

Differences can be cleared against the same G/L account, or posted to a different one.

¡        Whether the resulting tax amount is to be included on debit memos

·        Posting parameters for the clearing documents

You can simulate the results by setting the Test run indicator.

Posting

The report generates a batch input session for posting the debit/credit memos and the related clearing documents. You process this batch input session following the standard procedure.