Group Currency calculation issue

Group Currency calculation issue

We have company code in Dubai where local currency is USD and also Group Currency is USD.

we have created  PO with currency JPY (Exchange rate Fixed) . After Posting MIGO and MIRO transactions, there is a difference in “Local Currency”( USD) and “Group Currency” (USD).

On further analysis we have found that Local currency conversion rate picked from PO and Group Currency conversion rate is being picked from OB08  currency exchange rate. As such there is a difference in reporting.

Solution:

Check the currency translation option selected for Group Currency in OB22

1. Translation taking transaction currency as a basis

2. Translation taking first local currency as a basis

If we select the option 1, system takes the document currency as the base for conversion into Group currency

Option 1:

If the document currency is other than local currency, then system takes the document currency as the base and converts the values into Group and Global.

Ex:- Document currency – USD      1000

Local currency – JPY            JPY / USD = 1.2     = 1000/1.2 = 833

Group currency – USD 1000 (Since the conversion base rule is document currency, there will not be any difference in Group currency.)

If we select the option 2, then system takes the Local currency as the base for conversion into Group currency

Option 2:

If the document currency is other than local currency, then system takes the local currency as the base and converts the values into Group currency.

Ex:-        Exchange rates as on 06/28/2012

USD / JPY = 0.64455

JPY / USD = 1.55135

Since the system is converting document currency into local and local to group currency, the amount may not match between document currency and group currency due to exchange rates as specified above and rounding rule.