1881844 - 97 - Currency exchange differences Posted to Original Expense Account

SAP Business ByDesign

In the Charts of Accounts, Financial Reporting Structures, Account Determination fine tune activity under Account Determination - Accounts Payable, in the Exchange Rate Differences tab you have maintained G/L accounts for exchange rate differences.

0 - Pre-condition: You have created a/n expense report/ supplier invoice for a/n employee/supplier and a payment with a value, lower than the original expense amount separately.

1. in the Payables workcenter navigate to the Supplier Accounts view.
2. In the Show field, select All Employees or All Suppliers.
3. Select the respective employee/supplier and press View.
4. In the Trade Payables tab, select the expense report and the payment and choose Clear manually.
5. For the invoice, maintain a discount of type 97 - Currency exchange differences.
6. Post the clearing.
7. In the journal entry of the clearing you notice that the currency difference discount has been posted to the original G/L account which corresponds to the account determination group that you have maintained for payables.
8. But you expect that the currency exchange difference is posted to one of the G/L accounts that you have maintained for exchange rate differences in the Exchange Rate Differences tab.

The posting logic for the maintained discount is controlled by the settings maintained in the fine tune activity Posting Control Profiles for Procurement Processes.
The standard posting control profile suggests to post any kind of cash discounts to the original expense account.

The payment difference reason 97-Currency exchange rate difference is still considered as cash discount:

1. Go to the Generally Accepted Accounting Principles fine tune activity.
2. First choose the Generally Accepted Accounting Principle link to find out which posting control profile is used by the respective accounting principle.
3. Take note of the posting control profile description and close the screen.
4. Now choose the Posting Control Profiles for Procurement Processes link.
5. Find the posting control profile which you noted down and check the Procure for Consumption tab.
6. Here, under 1-Cash Discount, 2-Over-/Under payment, 3-Differences from Deviating Payment you can see that the Post to Original Expense Account indicator is selected. 

This is the reason why the cash discount from the currency exchange rate got posted to the original expense account.

However, it is possible to use a customized posting control profile,  in which you can deselect the original expense account posting logic for certain payment and price differences:

Create a new posting control profile for procurement processes and assign it to the respective accounting principles:

1. In the Business Configuration workcenter access the Generally Accepted Accounting Principles fine tune activity.
2. Choose the Posting Control Profiles for Procurement Processes link. 
3. To create a new posting control profile copy the General Posting Profile: Choose Copy, change the Posting profile ID and the profile description.
4. In the sub-tabs underneath you can maintain the payment difference posting settings for three procurement options: Procure for Consumption, Procure to Stock, Procure to Fixed Assets.
5. If you do not wish payment or price differences generating a discount to be posted to the original expense account, go to the Procure for Consumption tab, select 3 - Differences from Deviating Payment Currency and deselect the Post to Original Expense Account column indicator. 
6. Press Save and Close.
7. Now choose the Generally Accepted Accounting Principle link.
8. In the new window you can assign the new Posting Control Profile to the respective accounting principle/s.
9. Press Save and Close.

If you now maintain a payment difference of type 97 - Currency exchange differences in a clearing the payment difference will be posted to the exchange rate difference account maintained in the Exchange Rate Differences tab for Accounts Payable.

1816316 - Supplier Cash Discount Posted to Original Expense Account

Currency Exchange, Difference, Expense Account, 97 - Currency exchange differences, Payment Difference, Other Discounts/Credits , KBA , SRD-FIN-GL , General Ledger , SRD-FIN-MOP , Payment Management , How To