Hi Timothy / Taro,
I have a scenario to pay foreign currency amount from local currency bank account and I would like to confirm with you if my understanding is correct or else if you can guide me in right direction.
Scenario is as follows:
Headoffice has 3 bank accounts in GBP, USD and EUR currencies each.
Subsidiaries have either EUR or GBP as their local currency. I have created 3 current accounts for each subsidiary in IHC viz. USD, GBP and EUR accounts.
If a subsidiary having EUR as local currency initiates a payment in AUD then this should go out from EUR bank account of Head office. And if a subsidiary having GBP as local currency initiates a payment in AUD then this should go out from GBP bank account of Head office. In both cases, payment method chosen is wire.
So, lets say subsidiary 1 (LC = EUR) makes a payment of 100 AUD to a vendor, then:
Subsidiary 1 executes payment run:
Dr. Vendor +100 AUD
Cr. IHC Clearing account -100 AUD
IHC receives IDOC and updates the account as follows (provisional posting):
Clearing Partner's AUD account +100 AUD (AUD current a/c belonging to clearing partner/HO at IHC)
[Question: I'm not able to post to clearing partner's EUR a/c. System throws a message that the payment curr. and a/c cur. should be same. Please clarify if I need to create accounts in each and every foreign currency for the clearing partner and maintain it in configuration?]
Subs 1 EUR account -100 AUD (-65 EUR) (EUR current a/c belonging to Subs at IHC)
Head office:
Dr. PT clearing account +100 AUD (65 EUR)
Cr. EUR clearing account -100 AUD (-65 EUR) (Actual account with bank)
External Bank statement is received in EUR, so:
Dr. EUR clearing account +67 EUR (Actual account with bank)
Cr. EUR account -67 EUR (Actual account with bank)
[Question: How do I account for FX difference now? It should be passed on to the subsidiary which initiated the payment]
Thanks in advance.