Purpose
Exchange rate differences occur when you issue an invoice in a foreigncurrency, and the exchange rate has changed by the time your customerpays the invoice in Argentine pesos. You use the Exchange RateDifferences report to create:

• Debit memos

In this case, the exchange rate has changed to your benefit, and in thelocal currency you receive more than the original invoice amount. Bylaw you must calculate this gain and pay any tax due, which yougenerally collect from your customer.

• Credit memos

In this case, you report a loss due to the change in exchange rate.

• Related clearing documents

When you create debit memos for your customers, the system creates thecorresponding open items. This report clears these open items, based onyour posting parameters.

Prerequisites
Your system is configured in such a way that exchange rate differencesare posted to a separate G/L account.

Features
This report reads exchange rate entries that the system createsautomatically during the payment clearing process. It createsdebit/credit memos as well as the subsequent clearing documents, basedon the specified posting parameters.
Note that if you have introduced mandatory fields in documents, you caninclude these in the debit/credit memos and clearing documents createdby this report; see SAP Note 575709 and related Notes for details.

Selection
On the report selection screen, you need to specify:


• The G/L account to which exchange rate differences have been posted


• Posting parameters for the debit/credit memos to be generated

Document type
Posting keys for debit and credit memos
Enter posting keys for the customer account and G/L account. Theresulting memo will include one customer line and any number of G/Llines, based on the number of tax codes involved.
G/L account that the exchange rate difference gain or loss is to beposted to
Differences can be cleared against the same G/L account, or posted to adifferent one.
Whether the resulting tax amount is to be included on debit memos

• Posting parameters for the clearing documents

You can simulate the results by setting the Test run indicator.

Posting
The report generates a batch input session for posting the debit/creditmemos and the related clearing documents. You process this batch inputsession following the standard procedure.