Posting Documents in a Foreign Currency

Use

When you post a document in foreign currency, the system stores the amount in both local currency and foreign currency in each line item. The system checks whether the currency key has been defined and is therefore permitted.

Foreign currencies are needed, for example, for the following:

To post and save receivables and payables in foreign currency
To handle payment transactions in foreign currency
To manage accounts in foreign currency (foreign currency balance sheet accounts)
To carry out the consolidation and reporting for groups

In the line items, all amounts are saved in both currencies. These include the posting amount, tax amount, and cash discount amount.

Prerequisites

You have made the following specifications in Customizing under Global Settings:

Currency key for each currency
Number of decimal places (if you do not require the usual two decimal places)
Local currency per company code
Exchange rate between local and foreign currency

In the master records for the G/L accounts, you have to define the currencies you can use to post to that account.

If exchange rate differences arise during clearing or valuating of items or accounts in foreign currency, the system generates postings. To enable the system to do this, you must have defined G/L accounts and posting keys.

Activities

To specify the foreign currency for your document, enter the appropriate currency key in the Currency field in the document header. There are several ways to enter an exchange rate:

Enter a posting date and the currency key in the document header. The system automatically transfers the exchange rate valid on the posting date. Exchange rates are defined in the system.
You can also enter the exchange rate directly (manually) in the document header via the currency key and exchange rate fields.
Enter a translation date in the document header. The system then automatically takes the exchange rate valid on this translation date.

The valid exchange rate is the one entered on the posting date or on the translation date, or the rate entered at an earlier time. For example, if you post a document on August 25, but the last exchange rate in the system setting is from August 22, the system uses the exchange rate from the entry on August 22.

You can enter the amount in each line item in both local and foreign currency.

You can enter documents in any foreign currency for which a currency key is defined in the system. If you manage a G/L account, for example a bank account, in a foreign currency, you can only post documents to this G/L account in the account currency, that is, the foreign currency.

Note Note

For more information about clearing open items in foreign currency, see SAP Library under FI General Ledger Accounting as well as FI Accounts Receivable and Accounts Payable.

End of the note.