2172409 - Manually Applied Exchange Rate Difference is not Being Posted to the Approporiate G/L Account

When processing a Payment Allocation with an over, or underpayment caused by exchange rate differences, the system posts the difference amount to an account of type ACLEAR - Accruals or clearings and not DIFFER - Differences.

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1. Go to the Payment Management work center.
2. Open the Payment Allocation view.
3. Open a Payment Allocation which has a qualifying over/underpayment and has not been processed yet.
4. Allocate the appropriate open items if necessary.
5. For the remaining over/underpayment, select the Payment Difference Reason "97 - Currency exchange differences" and save it as an Additional Discount or Credit.
6. Post the allocation.
7. In the resulting Journal Entry, you see that the over/underpayment has been posted to a discount account and not currency exchange rate difference account.

Even if the payment difference reason was maintained as "97 - Currency exchange differences", manually maintained discounts are still regarded as discounts as opposed to currency differences and the system handles them as such. Actual exchange rate differences are calculated automatically by the system based upon possible deviations in exchange rate between the transaction and company currencies which is to be maintained separately.

In order to enable proper calculation of currency exchange differences, you should regularly maintain the relevant exchange rates by following these steps:

1. Go to the General Ledger work center.
2. Open the Edit Exchange Rates view in the Common Tasks section.
3. Maintain the relevant exchange rates while minding the correct direction of Source and Target Currency as well as the instructions provided above the table.
4. Confirm the entries by clicking Save and Close.

Afterwards, when processing a document chain where the company and transaction currencies differ and a deviation in the exchange rate between these currencies has been maintained as above, the system will automatically detect the change, calculate the amount and post it as either a gain or loss from exchange rate differences to the appropriate G/L Account.

KBA , SRD-FIN-GL , General Ledger , How To