Clearing Open Items in Foreign Currency Posting and Clearing

You can clear open items in any currency you want.

The amount of all the selected open items will automatically be translated to the currency in which the clearing is to take place. The translation is executed as follows:

Item currency ® Local currency ® Clearing currency.

You are therefore not required to make additional entries in the translation table for cross-currency clearings.

When clearing, you can only display the open items in either the clearing currency or the local currency. The originally posted amounts for items which were posted in a third currency do not appear in the overview.

You no longer need to make a posting to an interim account (currency exchange account) for payments in a foreign currency which do not correspond to the paid items.

Clearing in a Third Currency

The company code local currency is DEM. An invoice was created on 4/1/94 for 1000 SFR, and on 4/15/94 a payment for 685 USD was entered. If the invoice were created in USD, the amount due would be $687.14. A difference of DEM 8.65 remains in the local currency. This difference is divided up into unauthorized deductions in the amounts of DEM 3.66 and due to the loss in SFR exchange rate fluctuation DEM 4.99.

If you want to clear cross-currency open items, it may be worth your while to view the item currency keys in the overview. In order to do so, you need to define a corresponding display variant in which the field Currency is supported by the internal field name WAERS. In the Accounting IMG, select the step Define processing formats and then Posting ® Clearing procedures ® Line layout to do this. You can either change or add to the existing variants or define completely new variants. For information about system configuration,