Describing the Intercompany Process for Foreign Exchange Management (2F2)
Objectives
After completing this lesson, you will be able to:
After completing this lesson, you will be able to:
Outline the scope of the Intercompany Process for Foreign Exchange (2F2)
Use the Intercompany Process for Foreign Exchange
Manage the Intercompany Process for Foreign Exchange – Parallel Ledger (2HU)
Configure the Intercompany Process for Foreign Exchange
Intercompany Process for Foreign Exchange Overview
Intercompany Process for Foreign Exchange Overview
This process enables you to enter foreign exchange transactions if the counter-party is an affiliated company. When you create a foreign exchange transaction (spot exchange, forward exchange, foreign exchange swap and non-deliverable forward transaction) in the company code of the issuing company, mirror transactions will be automatically generated in the company code of the receiving company.
Intercompany Process for Foreign Exchange Process
Creating foreign exchange transactions with affiliate companies easily is the main business benefit of this scope item.
To achieve this, the key process flows covered by this item include the creation of a FX spot/forward - intercompany transaction, a FX swap - intercompany transaction and non-deliverable forward - intercompany transaction. After this step is performed, the system automatically creates the corresponding mirror deal. This transaction can be checked afterwards as well.
Intercompany Process for Foreign Exchange Operations
Check Cash Position
The Cash Manager from central group verifies the cash position status and determines that a specific foreign currency is required for a subsidiary company based on analysis of foreign currency cash position. The Cash Manager enables the intercompany foreign currency exchange transactions.
Intercompany FX Forward Transaction
The process allows a company to exchange foreign currency with an affiliate company.
This scope item allows the company who wants to exchange foreign currency with the affiliate companies. The contracts and deals are mirrored automatically. These intercompany transactions can be posted into the leading accounting principle. The intercompany process described here is applicable to the following product type and transaction type combinations:
The intercompany FX deal creation is similar to external FX deal. You can create them with the Fiori app Create FX Spot/Forward and the above mentioned product types.
Mirror Deal
Once the issuing deal is created, you need to check whether a mirror deal is generated successfully, then complete the following processes for both the issuing FX deal and mirror deal respectively. The status of issuing deal or mirror deal is independent. For FI posting related steps, you can execute postings for parallel valuation areas separately from operative valuation area.
Intercompany Process for Foreign Exchange – Parallel Ledger (2HU)
Intercompany Process for Foreign Exchange Parallel Ledger Overview
This scope item allows the company to exchange the foreign currency with the affiliate companies and post the transactions with Parallel Ledger. It helps the customer to execute the posting for the parallel valuation area separately from the operative valuation area. In practice, the customer can also do postings for all valuation areas at the same time.
Intercompany Process for Foreign Exchange Parallel Ledger Process
The main business covered in this item is to valuate the intercompany foreign exchange transactions with a different accounting principle. Therefore the Intercompany Process for Foreign Exchange - Parallel Ledger uses the scope items 2F2 - Intercompany Process for Foreign Currency and the 1X9 - Foreign Currency Risk Management - Parallel Ledger in both the receiving and issuing company.
Intercompany Process for Foreign Exchange Configurations
Self-Service Configuration User Interface
Select the Manage Your Solution app in order to get to the Configuration screen.
The task Configure Your Solution enables you to maintain certain processes.
Self-Service Configuration Tasks
In this activity, you assign the company code to a partner. This partner represents the affiliated company as counterparty in an intercompany FX transaction.
For the issuing transaction and mirror transaction creation, both business partners for the issuing and receiving company code need to be maintained.
In this activity, you determine whether a mirror transaction is created with the company code, product type, transaction type, and activity category parameters.
The Partner field determines the transaction counterparty and the company code of the mirror transaction.
A mirror transaction can only be generated if an issuing contract is created with the matched parameters.
