FOREIGN CURRENCY TRANSACTIONS
1. Check exchange rate type
Bank buying Exports G type
Bank selling Imports / Expenditure B type
Average rate MM /SD users type
Path : SPRO-SAP Net weaver- General Settings – Currencies – Check exchange rate types
Select position button
Exchange rate type: B (enter B)
Enter
Define translation rates for currency translation:
Giving conversion factors for two currencies:
USD 1 : INR 1
JPY 100 : INR 1 JPY=Japanese - Yen
ERO 1 : INR1
GBP1 : INR1 GBP=Great Britain -Pound
ITL1 : INR1 ITL=Italian -Lira
JPY 100 : INR1 37Rs
Or
1 : 0.01 0.37
Once we follow one conversion factor follow continuously for all the years. Don’t change in between if we change in between it gives wrong results.
This is given at client level and not at company code level (Client 800)
Path: SPRO – SAP Net weaver- General settings – Currencies – Define translation
ratios for currency translation
Ignore the message select yes button.
Select new entries button
Exchange rate type From To valid (from) Ratio (from) Ratio (to)
G (Bank buying) USD INR 01.10.2008 1 1
B (Bank selling) USD INR 01.10.2008 1 1
M (Average rate) USD INR 01.10.2008 1 1
Select save button or Ctrl+S
Press enter to save in your request.
Enter exchange rates:
Path: SPRO- SAP Net weaver- General settings- currencies – Enter exchange rates
Forex Table
We can enter Daily quotations / Week end quotations / Month end quotations.
For each day end for each type we can enter only one rate.
Select new entries button
Exchange type Valid from R From currency Director quotation To
G 10.10.2008 1 USD 47.00 INR
B 10.10.2008 1 USD 47.50 INR
M 10.10.2008 1 USD 47.10 INR
Press enter and save in your request.
Exchange rates entry at the End User Area:
Path: Accounting – Financial accounting – General ledger-Environment – Current settings – Enter translation rates (S_BSE_68000174)
Foreign currency postings for end user area:
SCENARIO :1 SCENARIO 2
When exchange rate is not entered at When exchange rate is entered at the
the time of posting. Time of posting
- IF we don’t enter the rate at the time of posting, it takes rate from Forex table
- If take the latest date rate
01.10.2008 45
10.10.2008 47
Enter date :15.10.2008
Posting date :09.10.2008
- To enter default exchange rate type based on document type.
General ledger posting : SA Bank selling rate
Purchase INV posting (FI purchases) :KR Bank selling rate
MM Purchases :RE Bank selling rate
Sales invoice posting (FI Sales) DR Bank buying rate
SD sales RV Bank buying rate
If we do not specify system takes average rate.
- To enter default exchange rate type B (Bank selling rate) for document type
‘SA’
Use the Tr. Code is OBA7
Select type : SA
Select details button
Under default values exchange rate type for foreign currency documents. Select B (Bank selling rate)
Save
- Posting of expenditure in USD F-02
Give the document date : To days date
Type : SA
Company code :AML
Currency : USD
Rate : Blank
Posting key :40
Account : 400100 (salary)
Enter
Give the amount :1000
Business area : AMLH
Text : Salary payment
Enter
Posting key : 50
Account :200100 (cash account)
Enter
Amount : *
Business area : AMLH
Text :+
From the menu select Document ->Simulate
To view in INR
Select display currency button
Save
When exchange rate is extend at the time of posting
Expenditure posting Tr.Code is F-02
Document date : To days date
Type : SA
Company code : AML
Currency : USD
Rate :50
Posting key :40
Account no. :400100 (salary account)
Enter
It gives the warning message exchange rate 50 deviates from table rte 47.50 by 5.26%
Ignore the warning message press enter
Amount :10000 USD
Business area : AMLH
Text : Salary payment
Enter
Posting key :50
Account no. :200100 (Cash account)
Enter
Amount :*
Business area :AMLH
Text :+
From the menu select Document ->Simulate and save
REVERSELS:
1. Individual Document Reversal
2. Reversal of Reversed document
3. Mass Reversal
4. Clearance Items Reversal
5. Account Deferral document reversal
- Individual Document Reversal
A) To reverse one document at the time
B) To give reversal reason
C) At the time of reversal, it we do not give reversal date it takes original document posting.
Date incase, that period should be open
- Document posted on 10th April 2008 Doc.No.1 Generated
- Now, we have open the periods from September 2008 to October 2008
6,2008 – 7,2008
3. Ledger scrutiny - Doc.No.1 is wrong
Document No.
Reversal reason
Reversal date Blank
Save
It takes original document posting date 10/04/2008
It can not reverse, since the April period is not open
Path : Accounting – Financial Accounting – General ledger – Document – Reverse – Individual Reversal (FB08)
Give the document no. :1
Company code :AML
Fiscal year :2008
Select 01 reversal reason
Posting date : Blank
Select display before reversal button
Select back arrow
Select save button or Ctrl+S
From the menu select Document –>Display
Select Go to Display document Head button (F5)
Double click on document no.1
Select display document header button
1. Posted Documents 1
2
3
4
5
6 Reversal for 1
7 Reversal for 2
2. Document type and no./ranges : OBA7
Select type : SA
Select details button
Number range :01
Reversal Doc.type : AB
3. Document display : FB03
Company code : AML
Doc. Type : SA original documents
AB Reversed documents
- Reversal of Reversed Document
Indirect method (work around)
To reverse Doc No.2 By mistake we have reversed Doc.No.1 and it has generated Doc.No.18
Use transaction code F-02
From the menu select post with reference
Give the document no. :18
Company code :AML
Fiscal year :2008
Select generate reverse posting check box
Select display line items check box
Enter
Enter once again
Change the text to reversal for Doc No.18
Enter
Text :+
Enter
Save
Enter
From the menu select Document ->Display
Select display document header button
3. Mass Reversal
A)To reverse more than one document at time we use mass reversal.
B) The documents to be reversed can be continuous numbers or random numbers.
Path: Accounting – Financial accounting – General ledger – Document – Reverse – Mass reversal (F.80)
Give the company code : AML
To reverse random numbers
Select multiple selection button beside document no.(-->)
Under single values
Give document no .2
4
Select copy button
Reason for reversal 01
Select test run check box
Execute
Select reverse documents button
Cleared Items Reversal
- Go and see open item managed account transactions (FBL3N)
Give the GL Account Number 100500 (out standing exp)
Company code : AML
Select clear items radio button
Execute
Out standing exp A/c
01
10 Bank 15000 9 Rent 15000
CI
9 Rent 15000 Cr
10 Bank 15000 Dr
Stop payment instructions to the banker
A) Reset cleared items – Delink between the provision and payment.
Out standing expenses A/c
01
10 Bank 15000 9 Rent 15000
B) Reverse cheque transaction
Out standing expenses A/c
01
9 Rent 15000
Path: Accounting – Financial accounting – General ledger-Document –Reset clear items (Tr.Code is FBRA)
Clearing document : 10
Company code : AML
Fiscal year : 2008
Select save button or Ctrl +S
Select resetting and reverse button
Reversal reason :01
Enter
We get a message clearing 10 reset
Enter
Go and see open item managed account transactions Tr code is FBL3N
Give the GL Account no.100500 outstanding expenses
Company code : AML
Select open item radio button
Execute
Interest Calculations
Balance Interest calculation Item interest calculation
S Type P Type
GL Account Vendor / Customers
Define interest calculation type:
Path : SPRO- Financial accounting – General ledger accounting- Business transactions – Bank account interest calculation – Interest calculation Global settings – Define interest calculation types
Interest indication : G1
Name : 10% Monthly
Interest calculation type : Select S
Balance interest calculation
Press enter to save in your request
Prepare account balance interest calculation:
Path : SPRO- Financial accounting – General ledger accounting- Business transactions – Bank account interest calculation – Interest calculation Global settings- prepare account balance interest calculation (Tr.Code OBAA)
Select new entries button
Interest calculation indicator : G1
Interest calculation frequency : Select 01
Calendar type : Select G (28 31/365)
Select balance plus interest check box
Save
Press enter to save in your request
Calendar Type
In case of rupee loans we use G Calendar In case of foreign currency loans we
use F calendar.
FC Loan from SBI LIBOR +2%
(LIBOR Mean London Inter Bank Offer Rate)
For interest calculations the denomination will be always 360 days
FIBOR – Frankfurt Inter Bank Offer Rate
MIB - Mumbai Inter Bank Offer Rate
Define Reference Interest Rates:
SBI rupees term loan 10/04/2008 100000
10/09/2008 10000
Interest calculation for the year
1st method
On 100000 from 10/04/2008 to 31/03/2009 at 10% 15000
On 100000 from 10/09/2008 to 31/03/2009 at 10% -3000
--------
12000
2nd Method
On 10000 from 10/04/2008 to 09/09/2008 at 10% 5000
On 90000 from 10/09/2008 to 31/03/2009 at 10% 7000
------
12000
=====
If the account is having credit balance 10%
If the account is having debit balance 8%
Loan account – Interest indicator Account Credit balance reference interest rate : G2-10%
Account debit balance reference interest rate G3-8%
A) Interest rates are given to reference interest rate (G2 and G3)
B) Reference interest rates are specified separately if there is a credit balance and if there is a debit balance and it will be assigned to interest indicator
C) Interest indicator will be specified in loan account.
Define reference interest rates:
Path : SPRO – Financial accounting – General ledger accounting – Business transaction –Bank account interest calculation – Interest calculation –Define reference interest rates (Tr code is OBAC)
Select new entries button
Ref int.rate : G2
Long text : Credit balance 10% interest
Description also credit balance 10% interest
Date from :01.04.2008
Currency : INR
Save
Press enter to save in your request
Select next enter button
Ref.int.rate : G3
Long text : Debit balance 8% interest
Description : Dr. Bal 8% int
Date from : 01.04.2008
Currency : INR
Save
Define Time – Dependent Terms
Path : SPRO – Financial accounting – General ledger accounting – Business transaction – Bank account interest calculation – Interest calculation- Define time – Dependent Terms
Select new entries button
Interest calculation indicator : G1
Currency key : INR
Effective from : 10.04.2008
Sequential number :1
Terms : Select credit interest balance interest calculation
Ref.interst rate : G2
Save
Press enter to save in your request
Select next entry button (F8)
Interest calculation indication : G1
Currency key : INR
Effective from :01.04.2008
Sequential number :2
Term : Select debit interest balance interest
calculation
Reference rate : G3
Save
Enter Interest Values
Same path as above (Tr code is OB83)
Select new entries button
Reference interest rate : G2
Valid from : 01.04.2008
Interest rate : 10 (one month)
Reference interest rate : G3
Valid from : 01.04.2008
Interest rate : 8
Save
Press enter to save in your request
Creation Of 2 Gl Masters
A .SBI rupees term loan Secured loans
B. Interest account Intrest
To check account groups for giving account numbers OBD4
Select position button
Give the chart of accounts : AML
Enter
Secured loan range :100300 -100399
Interest range : 400400-400499
Creation Of Gl Masters (Fs00)
Give the GL account no. :100300
Company code : AML
Select with template button
Give the GL Account no. :100000 Equity share capital
Company code : AML
Enter
Change the account group to secured loans
Change short text to SBI rupee term loan
Change GL account long text to SBI rupee term loan
Change GL Account text to SBI rupees term loan
Select Create / Bank / Interest tab
Field status group change to G005
Interest indicator select G1
Save
Tr.Code:FS00
GL Account no. :400400
Company code : AML
Select with template button
Give the GL account no. :400100 salaries account
Company code : AML
Enter
Select type / Description tab
Change account group to interest
Change short text to interest a/c
GL account long text: Interest account
Save
Assignment accounts for automatic postings:
Path : SPRO- Financial accounting – General Accounting – Business Transactions – bank account interest calculation- Interest Posting – prepare GL Account balance interest calculation (Tr.Code OBV2)
Select symbols button
0002 Interest paid
2000 GL Account (paid)
Interest account Dr 0002 400400
To SBI rupees term loan 2000 100300
If more than term loan 2000 ++++++++++ ( 10 Times plus)
(10 times +(plus) mean any account number)
Length of account no. maximum 10 digits
We are using 6 digits – why can not we use ++++++ (6 times plus)
When we post a transaction – Cash account Dr
Credit to equity share capital and when we give the account number 200100 for cash account and 100000 for Equity Share Capital – It takes in the beginning 0000200100 Debit and 0000100000 Credit and when we save it saves with 200100 and 100000.
If we gives 6 times plus – when we simulate for loan it takes 000010 and it can not save.
SBI rupees term loan 100300
IDBI rupees term loan 100301
ICICI rupees term loan 100302
At the time of interest calculation, we give for which loan account interest is to be calculated. Now we are asking the system to calculate interest for 100301 – IDBI rupees term loan account 100301 will be replaced in ++++++++++
Select accounts button
Give the Chat of Accounts : AML
Enter
Accounts symbol Currency GL A/c
0002 INR 400400
2000 INR ++++++++++
Select save button or Ctrl +S
Press enter to save in your request
Open Posting period (Tr.Code is OB52)
To open posting periods for April 2008
Select position button
Give the posting period variant : AML
Enter
For Variant : AML
From the period 1 is :1
Select save button or Ctrl+S
Press enter to save in your request
SBI rupee term loan receipt : F-02
10.04.2008 SBI cheque date 100000
12.04.2008 cheque deposit in bank
Document date :12.01.2008
Posting date :12.04.2008
Interest calculation in SAP from 12.04.2008
Where as bank calculates from 10.04.2008
We are giving value date 10.04.2008
Now SAP also calculates interest from 10.04.2008
Document date & posting date :10.04.2008
Type : SA
Company code : AML
Posting key :40
Account :200100 (Cash a/c)
Enter
Ignore the warning message press enter
Amount :100000
Business area : AMLH
Value date :10.04.2008
Text : SBI Term loan receipt
Posting key :50
Account key :100300 SBI Rupee term loan
Enter
Amount : *
Business area : AMLH
Value date :10.04.2008
Text :+
From the new select document simulate and save.
Term loan repayment (F-02)
Due date :10.09.2008
Cheque date :10.09.2008
To bank credit in SBI books only on 12.09.2008 interest credit will be in our books 10.09.2008
SBI gives credit from 12.09.2008
Cheque date :07.09.2008
Value date :10.09.2008
F-02
Give the document date & posting date 07.09.2008
Type : SA
Company code : AML
Currency : INR
Posting key :40
Account no. :100300 SBI rupee term loan
Enter
Ignore the warning message press enter
Amount :10000
Business area : AMLH
Value date :10.09.2008
Text : SBI Term Loan Repayment
Posting key :50
Account :200100 (Cash account)
Enter
Amount enter :*
Business area : AMLH
Value date :10.09.2008
Text :+
From the menu select document –>Simulate and save
Balance Interest calculations:
Path: Accounting – Financial accounting – General ledger- periodic processing- Interest calculation-Balance interest calculation (F.52)
Company code :AML
Give the GL account :100300 ( SBI Rupee Term Loan)
Calculation period :01.04.2008 to 31.03.2009
Execute
Select back arrow
To view line item wise interest
Select additional balance line check box
Execute
Select bank arrow
How to give effect for floating rate of Interest
Interest rate change from 10% to 12% from 01.06.2008
On 100000 from 10/04/2008 to 31/05/2008 @10%
On 100000 from 01.06.2008 to 09.09.2008 @12%
On 90000 from 10/09.2008 to 31/03/2009 @12%
Open one more session with SPRO
Path :SPRO- Financial accounting – General ledger accounting – Business transactions- Bank account interest calculation – Interest calculation- Enter Interest Values (OB83)
Select new entries button
Reference interest rate : G2
Valid from :01.06.2008
Interest rate :12
Save
Press enter to save in your request come to the first session
Execute
Select back arrow
Interest postings to accounts:
Change the calculation period : 01.04.2008 to 30.04.2008
Select post interest settlements check box
Select update master records check box
Session name : AML
Posting to business area : AMLH
Posting date of session :30.04.2008
Posting segment text : Interest for April 2008
Select execute button
To view the batch input session
From the menu select system – >Services –> Batch inputà Session
Select session name : AML
Select process button
Select display errors only radio button
Select process button
We get a message processing of batch input session completed
Select exit batch input button
To view the document posted use the (Tr. Code FB03)
Go and see the GL maser (FS00)
Give the GL Account no. :100300 (SBI rupee T.L)
Company code : AML
From the menu select GL account –->Display –-> Select create / Bank / Interest tab
Key date of last interest calculation :30.04.2008
Date of last interest run :20.10.2008
On which date we have to run
1. Simple interest 2. Compound interest
SBI rupee term loan 10.04.2008 100000 SBI rupee term loan 10.04.2008 100000
30.04.2008 575
0002-400400 Interest A/c For may it calculates on 100575
2000-100510 Interest payable a/c
For may it calculates on 100000
Interest also to post to separate accounts
400400 Interest on SBI Rupee Term Loan
400401 Interest on IDBI Rupee Term Loan
400402 Interest on ICICI Rupee Term Loan
0002-400400 interest on SBI rupee term loan, we are calculating interest for IDBI rupee term loan
In batch input session – select process forward radio button
Deselect display errors only radio button
40 400400 Interest on SBI Term Loan 1000
Change account no to 400401
How to make open items initially inactive:
Clearing
1 1000 Cr
2 2000 Cr
3 3000 Cr
Payment 1000 Dr
The difference is too large for clearing all items are initially inactive
1 1000 Cr
2 2000 Cr
3 3000 Cr
Payment 1000 Dr
Path : Accounting – Financial Accounting – General ledger – Environment – User parameter- Editing options (Tr.code is FB00)
Select open items tab
Select selected items initially inactive check box
Save
Foreign Currency Balance Revaluation
FC term loan (Foreign currency TL)
|
Long term working capital Fixed assets purchase
|
Local assets Imported assets
21.10.2008 100000 USD 47 4700000
13.10.2008 100000 USD 50 5000000
-----------
300000
========
As per accounting standard 11 (ASII)
Balance to be revaluated and change to profit & loss account.
Creation of 3 GL Masters
A) SBI FC Term loan Secured loans
B) Exchange again other income
C)Exchange loss Administration
To check account groups for giving account no.OBD4
Select position button
Give the chat of accounts : AML
Enter
Note the other income range 300100 to 300199
Create of GL masters FS00
Give the GL account no.100301
Company code : AML
Select with template button
Give the GL account no :100300 (SBI Rupee Term Loan)
Company code : AML
Enter
Change short text and long test to SBI FC term loan
Select control data tab
Account currency change to USD
Deselect only balance and loan currency check box
Select create / bank / Interest tab
Interest indicator : Blank
Delete the dates
Save
GL Account :300100
Company code : AML
Select with template button
Give the GL account no. :400300 Rent account
Company code : AML
Enter
Select type/ Description tab
Change account group to other income change short text and GL account long text to exchange gain
Save
GL Account : 400301
Company code : AML
Select with template button
Give the GL account no.400300 rent account
Company code : AML
Enter
Change short text and GL account long text to exchange loss
Save