SAP ABAP IMG Activity SIMG_CFMENUCX01_CU10 (Define Posting of B/S Translation Differences in the I/S)
Hierarchy
☛ SAP_FIN (Software Component) SAP_FIN
   ⤷ EC-CS (Application Component) Consolidation
     ⤷ FC00 (Package) Cons: General consolidation (cannot be assign.to FC01-FC09)
IMG Activity
ID SIMG_CFMENUCX01_CU10 Define Posting of B/S Translation Differences in the I/S  
Transaction Code S_ALR_87003187   IMG Activity: SIMG_CFMENUCX01_CU10 
Created on 19981222    
Customizing Attributes SIMG_CFMENUCX01_CU10   Define posting of B/S translation differences in the I/S 
Customizing Activity SIMG_CFMENUCX01_CU10   Define posting of B/S translation differences in the I/S 
Document
Document Class SIMG   Hypertext: Object Class - Class to which a document belongs.
Document Name SIMG_CFMENUCX01_CU10    

You have the option of specifying in your translation method that translation differences in the balance sheet are posted to income statement items. These postings create an imbalance in the balance sheetand income statement.

Generally, this imbalance is posted as a financial statement balancing adjustment to annual net income and retained earnings, which are then increased or reduced. However, you might have a requirement to clear the imbalance in such a way that no adjustment to annual net income or retained earnings occurs. Such a clearing entry could look like this (or vice versa):
Transfers to Translation Differences (income stmt) Dr 99
to Translation Differences (balance sheet) Cr 99

This entry causes translation differences to be disclosed separately in the income statement and the balance sheet.

In this step, you can determine whether the imbalance, as a financial statement balancing adjustment, affects annual net income and retained earnings, or whether a clearing entry is posted:

  • Balancing adjustment for translation differences

    If you choose this option, you fill the balance sheet item and the income statement item with the items, which you inserted in step Define selected items for posting for the treatment of annual net income (if appropriations are shown in the balance sheet) or for the treatment of retained earnings (if appropriations are shown in the income statement).

    If this is done, the system posts the following:

    • If appropriations are on the balance sheet, the imbalance is posted to the annual net income items of the balance sheet and the income statement.
    • If appropriations are on the income statement, the imbalance is posted to the retained earnings items of the balance sheet and the income statement.
  • Translation difference does not adjust earnings, but is separately disclosed

    If you choose this option, enter the following FS items:

    • Specify the "transfers to currency translation differences" item as the income statement item.
    • Specify the "currency translation differences" item as the balance sheet item.

      Both items must already exist in the consolidation chart of accounts.

      By posting to the "transfers to currency translation differences" item in the income statement, the imbalance is cleared so that net income is no longer affected.

In subsequent periods, only the translation difference that applies to the current period is posted to the differences item in the income statement. The prior-periods portion is already contained in the carryforward balance. In order to have the system calculate the current-period portion, a statistical item is needed to save the accumulated value of the prior-period translation differences. You also define this item in this step.

Requirements

This step only applies if you have defined translation methods, which post translation differences of the balance sheet to differential items in the income statement.

Standard settings

In standard SAP system, the FS items are defined so that a balancing adjustment affecting earnings is posted for translation differences. A statistical item for the prior-periods portion is defined, too.

Activities

  1. Check if the translation methods you use post translation differences of the balance sheet to differential items in the income statement.
  2. If this is true for one or more methods, decide whether translation differences are to affect earnings, or whether a clearing entry is to be posted.
  3. Define the balance sheet item and the income statement item accordingly.
  4. Define the statistical item, which is to store the prior-periods portion of the translation difference. This item is predefined in the standard SAP consolidation chart of accounts.

Further notes

The method entries in the translation methods vary by dimension and consolidation chart of accounts. The items you define in this step only vary by the consolidation chart of accounts. For this reason, you need to ensure that the treatment of financial statement imbalances is the same for all dimensions.

Business Attributes
ASAP Roadmap ID 204   Establish Functions and Processes 
Mandatory / Optional 2   Optional activity 
Critical / Non-Critical 1   Critical 
Country-Dependency A   Valid for all countries 
Assigned Application Components
Documentation Object Class Documentation Object Name Current line number Application Component Application Component Name
SIMG SIMG_CFMENUCX01_CU10 0 HLA0100230 Currency Translation 
Maintenance Objects
Maintenance object type C   Customizing Object 
Assigned objects
Customizing Object Object Type Transaction Code Sub-object Do not Summarize Skip Subset Dialog Box Description for multiple selections
V_TF415 V - View CXD3 00000001 FS Items for Posting Trans. Diffs with Effect on Earnings 
History
Last changed by/on SAP  19981222 
SAP Release Created in