Sap Accounting: Re: [sap-acct] Problem in asset posting

Re: [sap-acct] Problem in asset posting

Posted by VidhyaDhar (User-friendly SAP FI Consultant)
on Jul 4 at 12:38 PM

Hi Srinivas

Have you finished purchasing the asset and is the asset capitalized by
december 2010 and put to use? Are you maintaining the asset in foreign
currency? Have you paid the vendor? If you have not paid the vendor as of 31
March 2011 ( Indian Year End...I suppose ) then you could do forex valuation
of vendor dues and account for the additional liability by incurring a
valuation loss. You do this by running FAGL_FC_VALUATION ( New G L ) or
SAPF100 ( classical G L ) by debiting forex loss and crediting a balance
sheet adjustment account which nets your vendor liability. But I am not too
sure if such loss can be capitalized and loaded on to the asset.

Regards

VidhyaDhar

---------------Original Message---------------
From: srinibas sahu
Sent: Monday, July 04, 2011 1:08 AM
Subject: Problem in asset posting

Hi Vidya Dhar,

Thanks for your reply. The purpose of adjusting an asset against an expense is :
As per accounting standard 11, we have to make provision for foreign fluctuation.

suppose on 1.12.2010 asset purchased from A : 5000 USD @ 45
Then on 31.03.2011 the rate is for 1 USD 45.50
So there is a loss of 0.50*5000= 2500
for this we are creating a provision entry as

asset account dr 2500
to A a/c 2500

This is my doubt how to make this entry
Moreover one more scenario is there as

suppose i made a wrong entry as

forex fluctuation account dr

to A A/C

So in this case i want to do a rectification entry as

Asset account dr

to forex fluctuation account

so that ultimately i will get my result.

Please suggest how to overcome the situation.

Thanks and Regards,
Srinivas

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