Managing Exchange Rate Differences

When open items are cleared in a foreign currency, exchange rate differences may occur. This happens due to fluctuations in exchange rates. SAP S/4HANA (FI) automatically posts these exchange rate differences to the revenue or expense account as realized gains or losses. You define the accounts for posting these differences when configuring SAP S/4HANA (FI). SAP S/4HANA (FI) stores the realized difference in the cleared line item.

Exchange rate differences are also posted when open items are evaluated for financial statements. The exchange rate profit or loss is posted to a separate expense or revenue account for exchange rate differences as an offsetting posting.

When clearing an open item that has already been evaluated, SAP S/4HANA (FI) reverses the balance sheet correction account and then posts the remaining exchange rate difference to the account for realized exchange rate differences.

You must assign a revenue or expense account to all reconciliation accounts and all G/L accounts with open item transactions in any foreign currency. You must assign these accounts for realized losses and gains.

You can assign one gain or loss account to the following currencies and currency types:

• All currencies and currency types
• Per currency and currency type
• Per currency
• Per currency type