3463889 - Issue with the Calculated Company Currency Amount based on Exchange Rate

You are facing a discrepancy between the expected and actual currency conversion values for Supplier Invoice ABC.

The expected conversion, based on the defined exchange rate in the system, should result in XXX CNY (For example, CNY = GBP). However, upon checking the Journal entry for the invoice, it shows a value of YYY CNY (For example CNY, = GBP).

SAP Business ByDesign

1. Go to Supplier Invoicing Work Center.
2. Go to Invoices and Credit Memos view.
3. Select All Documents from the dropdown and search for the Supplier Invoice ABC (ABC is the Supplier Invoice ID).
4. Click on view all
5. In the General Tab navigate to the Exchange Rates sub tab
6. The Supplier Invoice is for XYZ CNY (For example, CNY = AED).
7. Navigate to the document flow tab and open the Journal entry for Supplier Invoice ABC. You can notice that the Company Currency Amount is YYY CNY (CNY = GBP).

The system behavior is as expected.

• In the Journal Entry ID screen, click on 'You Can Also' and select 'View Business Transaction for Accounting'.
• Click on 'View All' and navigate to the Exchange Rates Tab
• You can see that the Source Currency is GBP and the Transaction Currency is AED and the Exchange Rate is abc. Hence, when we calculate exchange rate, YYY GBP * abc = XYZ AED 

Consider following the example mentioned below for in-detail explanation:

In the Supplier Invoice ABC, click on view all and navigate to the exchange rates sub-tab in the General Tab. You can observe that Unit Currency is GBP and the Quoted Currency is AED. According to the definition, 

Unit Currency:

The unit currency is the base currency or the currency against which exchange rates are quoted. It is the currency in which the amounts are initially entered or stored.  

Quoted Currency:

The quoted currency is the currency in which the exchange rate is expressed concerning the unit currency. When you look at an exchange rate, you will see how much of the quoted currency you would get or need for one unit of the unit currency. Quoted currency is often referred to as the "transaction currency."

If the unit currency is GBP (Pound Sterling) and the quoted currency is AED (United Arab Emirates Dirham), and you want to calculate the amount in GBP for a given amount in AED, the calculation will be:

Amount in GBP = Amount in AED/Exchange Rate 

Given the amount 26,250.00 AED:

• Amount in AED = 26,250.00 AED
• Exchange Rate (AED to GBP) = 0.2199

Substitute these values into the formula:

Amount in GBP=26,250 AED/0.2199

Calculating this:

Amount in GBP=119,372.44 GBP  

Therefore, if you have 26,250 AED with an exchange rate of 0.2199 (AED to GBP), the equivalent amount in GBP would be approximately 119,372.44 GBP.

You need to enter the correct Unit Currency and Quoted Currency in the exchange rates sub-tab in the Supplier Invoice which is causing the discrepancy.

Exchange rate, Journal Entry, Unit Currency, Quoted Currency, Supplier Invoice, Company Currency, Transaction Currency , KBA , SRD-FIN-GL , General Ledger , How To