Posting currency differences

Currency differences are caused by currency exchange-rate fluctuations during, for example, the period that an invoice amount is outstanding. During currency initialization the rate fluctuation can be caused by the recalculation of the rates based on the amounts in the new currencies.

These currency differences must be accounted for. Normally, such currency differences are posted as unrealized currency difference at year’s end, and at the time of payment or receipt they are posted as realized.

After internal and external currency initialization, you can use these sessions to write off currency differences of open invoices:

• Write Off Currency Differences (tfacp2240m000)
• Write Off Currency Differences (tfacr2250m000)

The ledger account for rounding differences

In the CI-Cluster Companies (tccri7102s000) session you must enter the ledger accounts to which LN posts the rounding differences that result from the conversion. You can specify statutory and complementary accounts of the Balance Sheet and Profit & Loss types. Rounding differences of transactions that can have an opening balance are posted to the balance-sheet accounts. Rounding differences of other types of transactions are posted to the profit and loss accounts.

To the ledger accounts, the following rules apply:

• The ledger account must have sublevel zero.
• The ledger account must not already be in use. This is because during the internal conversion of the period-totals tables a row might inserted with a key that already exists. This would stop the process.