Updating General Ledger Account Transaction Figures

You can update the transaction figures in general ledger accounts in the general ledger in local currency and transaction currency.

Up to and including Release 4.72, certain general ledger accounts used in Contract Accounts Receivable and Payable (FI-CA) had to have the attribute Balances in Local Currency . The following were affected:

Receivables accounts and other reconciliation accounts

Down payment accounts and accounts for tax clearing for down payments

Exchange rate difference accounts

This meant that it was not possible to determine the portions of individual currencies from the transaction figures of the accounts alone.

With Release 6.00, this restriction is no longer valid. You can change the accounts over during current operations. For transactions posted before the changeover, the transaction figures do not change; they are only recorded in local currency. For receivables, down payments, and tax clearing of down payments, clearing postings are also updated only in local currency provided the open item was posted before the changeover.

From a currency point of view, the account balances are deemed to be correct after the changeover if the following conditions are fulfilled:

Profit and loss accounts: The changeover took place before postings in the current fiscal year.

Receivables accounts (down payments, tax clearing): All items posted before the changeover have since been cleared.

Limitations

When you post tax-relevant down payments, the down payment account and the tax clearing account must have the same settings, that is, Balances in Local Currency must be active or not active in both accounts.

If there is a reversal, return, or clearing reset for a clearing posting in a third currency, that is, if part of the item(s) to be cleared was posted in a different currency to the clearing currency, you cannot reverse this reset posting again.

Tool for Changeover

After the changeover of the receivables accounts, their transaction figures are not correct as long as there are still open items in foreign currency that were posted before the changeover. As part of year-end closing, additional postings are therefore necessary to display currencies correctly using the receivables adjustment accounts.

With the open item list for the key date (SAP menu, Periodic Processing →Closing Preparation ), you can determine the values that would have been recorded in the receivables account if all postings had been updated correctly with regard to currencies. Run the evaluation in a variant where the indicators Update Currency Instead of Transaction Currency and Simulate Update Currency are set on the tab page Output Control .

You post the difference between the result of the open item evaluation and the balance of the receivable account in a currency to be considered using an adjustment account.

Local currency EUR, foreign currency being considered USD.

The receivables account has a balance of 400,000 USD, with a current value in local currency of 320,000 EUR. According to the open item list, the correct value would be 480,000 USD with a value of 380,000 EUR.

The receivables adjustment account is managed in the correct currency. You also need an interim account for which balances are only managed in local currency. The following adjustment postings are necessary:

Receivables adjustment to interim account 80,000 USD (60,000 EUR).

Interim account to receivables adjustment 60,000 USD (60,000 EUR).

For the first posting, you have to specify the foreign currency amount and local currency amount explicitly.

In the evaluation of open items for the key date, you can display totals in transaction currency or in update currency. For clearing in alternative currency, this leads to different results. In simulation mode, the results are displayed as if currency-justified update had been active in the receivables account from the very beginning.

You can also perform an evaluation by update currency and update amount using the report for reconciling the general ledger.