Hi, When you create GL account master records, it is necessary to decide whether you want to an accountto have the transactions updated only in local currency. Then you will set this indicator in the "company code" area of the master record. This indicator is especially for clearing accouns like, 1. GR/IR clearing accounts2. Bank clearing accounts You need to set this indicator on for all the cleating accounts where you use the local currency to clear the line items in various currencies. So that the transactions are posted without posting any exchange rate difference that otherwise might arise. For example: Consider an invoice for USD 1000, which on that day translates in to an amount of INR 48,000 with an exchange rate of 1USD = INR48. But at the time of goods received, the exchange rate may be changed to 1 USD = INR 47. In the above case, if the indicator is set, the system ignores the exchange rate as if the line items have been maintained only in the local currency (INR), and the items are cleared. If the indicator is not set, the system makes a posting for the exchange rate difference (INR 1,000) before clearing the two line items. Hope this helps. Regards, Kannusamy SSee the answer in contextHelpful Answers by SR B, Ravi Sankar Venna 1295 ViewsAverage User Rating(0 ratings)Helpful Answer Re: Balances in Local Currency SR BSilverSR B 30-May-2009 08:48 (in response to Sathishkumar N)local currency means company code currency. If you post a document other than company code currency u can able to seen in local currency also. For EX. your company code currency defined in USD . If u posted any document in other than USD ex. JPY you can see the report or document both in JPY(document currency) and in USD(company code currency or local currency) For this exchange we will maintain the conversion rates in OB08 or at the time of document entry itself.Alert Moderator Like (0)Re: Balances in Local Currency Chintan JoshiTopazChintan Joshi 30-May-2009 09:11 (in response to Sathishkumar N)Hi Joy, This setting is usually seen in GR/IR account. This has an effect on the transaction for e.g. FS10N i.e. GL balances. Here are the two scenarios assuming your l

ocal currency is INR 1. Account with "only balance in local currency" selected. If you make entry in this account with currency USD and EUR or any other foreign currency. So in FS10N you will be able to see balance only in local currency i.e. INR not in the currency you posted documents in. 1. Account with "only balance in local currency" not selected. If you make entry in this account with currency USD and EUR or any other foreign currency. So in FS10N you will be able to see balance in local currency i.e. INR and also in the currency you posted documents in.Alert Moderator Like (0)Helpful Answer Re: Balances in Local Currency Ravi Sankar VennaDiamondRavi Sankar Venna 30-May-2009 09:39 (in response to Sathishkumar N)To define in simple words: Account currency nothing but in which you want to maintain the currency for that GL Account. If you have maintained the GL Account in Local Currency (Company Code Currency), you can post that account in any currency. If you have maintained that account in foreign currency, you can ONLY post in that currency and the exchange rate differences will arise. Note: You cannot maintain foreign currency for clearing accounts and discount accounts etc. Regards, RaviAlert Moderator Like (0)Correct Answer Re: Balances in Local Currency Kannusamy SBronzeKannusamy S 01-Jun-2009 07:45 (in response to Sathishkumar N)Hi, When you create GL account master records, it is necessary to decide whether you want to an accountto have the transactions updated only in local currency. Then you will set this indicator in the "company code" area of the master record. This indicator is especially for clearing accouns like, 1. GR/IR clearing accounts2. Bank clearing accounts You need to set this indicator on for all the cleating accounts where you use the local currency to clear the line items in various currencies. So that the transactions are posted without posting any exchange rate difference that otherwise might arise.

For example: Consider an invoice for USD 1000, which on that day translates in to an amount of INR 48,000 with an exchange rate of 1USD = INR48. But at the time of goods received, the exchange rate may be changed to 1 USD = INR 47. In the above case, if the indicator is set, the system ignores the exchange rate as if the line items have been maintained only in the local currency (INR), and the items are cleared. If the indicator is not set, the system makes a posting for the exchange rate difference (INR 1,000) before clearing the two line items. Hope this helps. Regards, Kannusamy S