Foreign Currency Procurement

[长颈叔叔]

nmysore
Posted: Thu Apr 01, 2004 4:00 am Post subject: Foreign Currency - Ha Tran Please help !!

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Hi HT,

Thanks for your response to my earlier posts !!

Please shed some light on my confusion. These are not meant to be lazy questions ( not that I do not want to experiment them in the system) , but to clarify my understanding so that I can make some informed decisions
up front ( as you know SAP is not very forgiving when it comes to certain
config setups - it can be a costly mistake).

I will really appreciate if you can clarify them point by point.

1. My understanding is that you can do business with a vendor in a
currency that is different from your company local currency and you set this up in the vendor master. My question is, if the vendor has several locations in different countries, where you transact in multiple currencies, then

Q1-1 - Is it possible to have one vendor master with mutiple currencies
and multiple partner functions (for different locations) or do we have to create different vend. masters each with its own currency?

2. If you set up a vendor master with one default currency

Q2-1 - can you still create Pur.orders for this vendor in any currency other than default. If yes, then what does the setting in vend. master really mean?

Q2-2 - can you set up different currency for different materials sourced from the same vendor via info record?

3. If I create a PO with one exchange rate ( in the PO)

Q3-1 - then, will the difference between the PO rate and the exchange rate in FI be treated as price difference at the time of GR and posted to price difference ( assuming that I did not set the fixed rate flag in PO).

Q3-2 - If I set the 'fixed rate' flag in PO, then will the difference between the PO ex.rate and the FI ex.rate be treated as exchange rate difference ( KDM transaction key ? ) at the time of GR?

4. Assuming that the invoice is in the same currency as PO ( and both are different from company local currency)

Q4-1 - where does LIV take the rate from , if the PO rate is not flagged as fixed. Can that rate be changed in invoice? If so, how and where? Also, if the rate is changed in invoice then how is the difference between this changed rate and the assumed default ( where ever it pulled the default from) posted?

Q4-2 - Where does LIV take the rate from , if the PO rate is flagged as fixed. Can it be changed in invoice? If so, how and where? Also, if the rate is changed in invoice then how is the difference between this changed rate and the assumed default ( rate pulled from PO) posted?

5. If the PO currency is same as vend.master currency

Q5-1 - can you still post the invoice in a different currency ( though it is not set up as a default in vend.master)?

6. Can the base price in PO be in one currency ( paid to vendor abroad) and the local transportation cost and customs fee be in local currency ( paid to local freight company and local customs). If this possible then how and where do you set them up?

Thanks a lot in advance.

nmysore

[长颈叔叔]

Ha Tran
Posted: Thu Apr 01, 2004 6:13 am Post subject:

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Hi,

It was really a list of many inquiries to be clarified and I would assume you have spent significant time on this particular topic.


Q1-1 - Is it possible to have one vendor master with mutiple currencies and multiple partner functions (for different locations) or do we have to create different vend. masters each with its own currency?

You can possibly get one vendor number with various purchasing currencies by using the Vendor Sub-range functionality. This might be well applicable to the case where the vendor will have the different currency subject to the plant location.


Q2-1 - can you still create Pur.orders for this vendor in any currency other than default. If yes, then what does the setting in vend. master really mean?

The currency set in the Vendor Master Record is purely serving for automatic default of currency to the PO for externally-procured items. It will not prevent you from manually changing it in the 'Currency' field of the 'Delivery/Invoice' tab page of the PO Header Level.


Q2-2 - can you set up different currency for different materials sourced from the same vendor via info record?

Yes, it can be done by manually change it directly in the Purchasing Organization Data 1 of the Info Record.


Q3-1 - then, will the difference between the PO rate and the exchange rate in FI be treated as price difference at the time of GR and posted to price difference ( assuming that I did not set the fixed rate flag in PO).

First of all, the exchange rate difference will be posted at the time of IR (not GR) which will be resulted from the difference in terms of exchange rate between GR and IR. Besides, the posting will be done to price difference account (PRD) instead of Exchange Rate Difference Account (KDM) unless the setting was done in Customizing.


Q3-2 - If I set the 'fixed rate' flag in PO, then will the difference between the PO ex.rate and the FI ex.rate be treated as exchange rate difference ( KDM transaction key ? ) at the time of GR?

No, once the 'fixed' indicator is flagged in the PO Header, then no exchange rate difference is yielded during GR and IR postings.


Q4-1 - where does LIV take the rate from , if the PO rate is not flagged as fixed. Can that rate be changed in invoice? If so, how and where? Also, if the rate is changed in invoice then how is the difference between this changed rate and the assumed default ( where ever it pulled the default from) posted?

The rate is automatically taken from Table TCURR which is maintained in Transaction OB08. This rate is not changeable directly in the Invoice Receipt.


Q4-2 - Where does LIV take the rate from , if the PO rate is flagged as fixed. Can it be changed in invoice? If so, how and where? Also, if the rate is changed in invoice then how is the difference between this changed rate and the assumed default ( rate pulled from PO) posted?

If the exchange rate is fixed in the PO, then this rate will be taken into account during GR and IR instead of from Table TCURR. Again, this rate is unchangeable.


Q5-1 - can you still post the invoice in a different currency ( though it is not set up as a default in vend.master)?

Yes, this can be done by manually changing the currency during IR maintenance.


6. Can the base price in PO be in one currency ( paid to vendor abroad) and the local transportation cost and customs fee be in local currency ( paid to local freight company and local customs). If this possible then how and where do you set them up?

This is possible provided that you have to set up the separate condition type for these freight charges and then assigned to another vendors. The currency is manually modified in the Conditions Tab View (Header or Line Item) of the PO.

Cheers,
HT

[wildmindhsu2]

樓主, 這真的是好東西. 感謝哩