Example documentationExample: Document Splitting in Realized Exchange Rate Differences

 

With document splitting, subsequent processes transfer specific account assignments from the original process. Examples of subsequent processes are realization of exchange rate differences and posting cash discounts. The system transfers the cause-related Controlling-relevant account assignments to Controlling on the basis of the original document.

Prerequisites

You have specified the cost center as the document splitting characteristic for Controlling (CO).

For more information, see Making Settings for Document Splitting.

Process Flow

This section provides an example of document splitting for realized exchange rate differences. The system also makes the same postings for cash discounts.

  1. Initial Situation

    You have entered an invoice of 1000 USD with an exchange rate of 1:1 for USD:EUR. For this, you have assigned two different cost centers appropriate to where costs/revenues were made.

    The following table shows the initial situation in the entry view:

    Invoice (Entry View): USD:EUR = 1:1

    Account

    Cost Center

    Segment

    Amount in TC (USD)

    Amount in LC (EUR)

    Vendor1

    1000 

    1000 

    Expense

    CC01

    SG01

     400 

     400 

    Expense

    CC02

    SG02

     600 

     600 

    (TC = transaction currency, LC = local currency)

    The following table shows the initial situation in the general ledger view:

    Invoice (General Ledger View): USD:EUR = 1:1

    Account

    Cost Center

    Segment

    Amount in TC (USD)

    Amount in LC (EUR)

    Vendor1

    SG01

     400-

     400-

    Vendor1

    SG02

     600-

     600-

    Expense

    CC01

    SG01

     400 

     400 

    Expense

    CC02

    SG02

     600 

     600 

  2. Enter payment

    At a later date, you pay for this invoice the amount 900 USD with an exchange rate of USD:EUR 1:1.10. You create a residual item for the remaining amount of 100 USD. In this case, realized exchange rate differences occur. When the lines for the realized exchange rate differences are posted, the cost center is taken from the expense lines of the original invoice.

    The following table shows the payment in the general ledger view:

    Payment (only general ledger view): USD:EUR = 1:1.10

    Account

    Cost Center

    Segment

    Amount in TC (USD)

    Amount in LC (EUR)

    Bank

    SG01

     360-

     396-

    Bank

    SG02

     540-

     594-

    Vendor1

    SG01

     600 

     600 

    Vendor1

    SG02

     600 

     600 

    Residual Items: Vendor1

    SG01

      40-

      44-

    Residual Items: Vendor1

    SG02

      60-

      66-

    Realized exchange rate differences

    CC01

    SG01

       0 

      40 

    Realized exchange rate differences

    CC02

    SG01

       0 

      60 

  3. Pay residual item

    You pay off the residual item completely at a later date, using an exchange rate of EUR:USD 1:1.20. During payment, realized exchange rate differences also occur, which are assigned to the cost center taken from the expense lines of the original invoice.

    The following table shows the payment of the residual item in the general ledger view:

    Payment of residual item (only general ledger view): USD:EUR = 1:1.20

    Account

    Cost Center

    Segment

    Amount in TC (USD)

    Amount in LC (EUR)

    Bank

    SG01

      40-

      48-

    Bank

    SG02

      60-

      72-

    Residual Items: Vendor1

    SG01

      40 

      44 

    Residual Items: Vendor1

    SG02

      60 

      66 

    Realized exchange rate differences

    CC01

    SG01

       0 

       4 

    Realized exchange rate differences

    CC02

    SG01

       0 

       6