Balances in Local Currency Only FI General Ledger

This indicator should be set for clearing accounts which are posted to in different currencies, and from which you want to be able to clear items without having to make further difference postings, providing the amounts balance to zero in local currency.

Set this indicator for clearing accounts you want to be processed as described below when clearing:

You manage a clearing account for goods received and incoming invoices to which you post manually. You post the incoming invoices in an invoice currency and the goods received in all cases in the local currency.

Incoming invoice 1000 DEM 1480 USD

Goods received 1480 USD

Both items can be cleared if the local currency only was taken as a basis for updating the balances. If the indicator is not set, the DEM amount is translated into USD during clearing to determine which equivalent in USD is necessary to clear the 1000 DEM. For an assumed exchange rate of 1.50, 1500 USD is then displayed for the incoming invoice when processing the open items, and 1480 USD for the goods received.

In order to clear both items, a difference posting of 20 USD must also be entered and the system automatically creates an additional exchange rate difference posting in the same amount.