Posting Exchange Rate Differences: Payment Program
Unless you specify otherwise, the payment program posts the exchange rate differences arising from foreign currency items. It does this by determining the difference between the rate at the time of posting and that when the item is paid. In order to determine the local currency amount at the time of payment, the payment program uses the exchange rates defined in the system.
If you donot want the exchange rate differences to be posted, you should specify this for the paying company code. See Specifications for the Paying Company Code. If you do so, the payment program calculates the equivalent payment amount in local currency on the basis of the local currency amounts in the paid items.
If the items to be paid have been reevaluated in the course of balance sheet preparation work, the adjustment postings to the receivables and payables accounts are reversed when the item is paid. At the same time, in order to determine the payment amount in local currency, the system also reads the valuation difference noted in the item.
If the payment program posts exchange rate differences, these actual exchange rate differences are noted in the cleared item. Such exchange rate differences are only temporary because the final difference can only be calculated when the bank statement is posted. It follows that you may have two exchange rate difference postings. If the payment program does not post any exchange rate differences, the cleared item does not then contain any information on realized differences. The exchange rate differences are not posted until the bank statement is posted. This method does not allow you to assign the differences to affiliated and non-affiliated companies for example. Further, it is not possible to retroactively assign the exchange rate variances to the business areas or cost centers which generated them.