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Function documentation Inflation Adjustment Only  Locate the document in its SAP Library structure


When the Inflation Adjustment of G/L Accounts program adjusts foreign currency balances using this method, it applies the inflation rate to the balance in your local currency.

The program does not valuate the foreign currency balance. Instead, the amount to be adjusted is the total local currency amount of the accounting documents, as shown in the following example. The system applies the inflation rate to this amount.


On 15 January you purchase shares on credit for USD 50,000, which corresponds to UNI 10,000 in your local currency. When you record the purchase in the system, it creates the following accounting document:

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On 31 January you purchase some more shares, again for USD 50,000. Since the exchange rate has changed, this purchase is now worth UNI 10,200. The accounting document is as follows:

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On 28 February you run the program to adjust the shares account. The program simply applies February's inflation rate to the balance. Since the balance is UNI 20,200 and the inflation rate is 0.5%, the inflation adjustment amount is UNI 101. The program creates the following inflation adjustment document, in UNI only:

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