Chapter 14 Cash Journal & Forex Transactions

CHAPTER 14 CASH JOURNAL & FOREX TRANSACTIONS
Table of Contents
1 Introduction ........................................................................................................2
2 Configuration Settings ......................................................................................2
2.1 Set Up Cash Journal ............................................................................................2
2.2 Define number range intervals for cash journal ...................................................2
2.3 Create, change, Delete Business Transactions ...................................................3
2.4 Define Document types for Cash Journal Documents .........................................4
2.5 Set up Print Parameters for Cash Journal ...........................................................4
3 Cash Book Transactions ...................................................................................5
3.1 Posting Cash Receipt ..........................................................................................7
3.2 Check Accounting Document generated..............................................................8
3.3 Petty Expenses Posting- Cash Payment .............................................................9
3.4 Reversal of Cash Journal Postings ....................................................................10
3.5 Print Cash Journal .............................................................................................11
4 Foreign Currency Customization....................................................................12
4.1 Check Exchange rate types ...............................................................................12
4.2 Define Translation ratios for currency translation ...............................................13
4.3 Check Exchange rates .......................................................................................14
5 Foreign Exchange Valuation ...........................................................................16
5.1 Executing Foreign Exchange Valuation .............................................................17
5.2 Execute Batch Input session ..............................................................................19
5.3 Go to FS10N and check GL Account Balances posted .....................................20
1 venkat.emani@yahoo.com
1 Introduction
The cash journal is used as a subsidiary ledger in Bank Accounting to manage cash transactions
within the organization. It can be used independently of other posting transactions. The opening
and closing balances, as well as the cash receipts and expenditures, are automatically recorded
and displayed. Multiple cash journals can exist within each company code.
2 Configuration Settings
The Cash Journal is implemented for the following company codes:
ABC Electronics Inc
2.1 Set Up Cash Journal

Via Menus
Financial Accounting (New) Bank accounting Business transactions>
Cash Journal Set up cash journal
Via Transaction Code FBCJC0
Click on
Click on
2.2 Define number range intervals for cash journal

Via Menus
Financial Accounting (New) Bank accounting Business transactions
Cash Journal Define Number Range Intervals for Cash Journal
Documents
Input the company code and click on
Click on
Click on and click on . Ignore messages, if any.
2.3 Create, change, Delete Business Transactions

Via Menus
Cash Journal Create, Change, Delete Business Transactions
Press Enter and click on .
Transaction number is automatically generated.

Business Transaction type : E For expense, R for revenue, D for Customer posting , B for bank
payment
For Expenses, revenue and Bank transfer we can give a default GL.
Tax code can also be entered and this shall get defaulted during entry.
Next column we have to give description for Cash journal
If a particular GL account needs to be modified during entry enable tick in Acct Mod
If a particular GL account needs to be modified during entry enable tick in Acct Mod
If a particular Tax code needs to be modified during entry enable tick in Tax Mod
Click on tab if a new Business transaction is to be created.
2.4 Define Document types for Cash Journal Documents

Via Menus
Cash Journal Define Document Types for Cash Journal Documents
Via Transaction Code OBA7
The document types required are readily available in the system. Use the following doc types
DZ for Customer payments and receipts
KZ for Vendor payments and receipts
AB for all other transactions.
Note: We need not change anything here, unless need we need to create a new document type.
2.5 Set up Print Parameters for Cash Journal

Via Menus
Cash Journal Set up Print Parameters for Cash Journal
Click on .
3 Cash Book Transactions
Via Menus Accounting Financial Accounting Banks Incomings

Cash Journal
Via Transaction Code FBCJ
The following screen might appear you are doing it for first time:
Press enter
To Change cash journal
Click on . The following pop up appears
Press (Enter) to proceed.
To Select Period
By clicking on
we can select date. Goes forward/Backward day wise.
we can select weeks. Goes forward/Backward weekly basis.
we can select Months. Goes forward/Backward on monthly basis.

To See Summary of Cash Balance
This area of Cash Journal shows the summary of Op Balance, Receipts/Payments, Closing
Balance. This is a tentative balance and need not be the balance as per GL balance.
Cash Receipts, Cash Payments, Check Receipts
To book Cash Receipts click on
To book Cash Receipts click on
3.1 Posting Cash Receipt

Make sure to click on right tab page for Cash Payments or Cash Receipts
Posting a Cash Receipt: Select
Document status is updated with Appropriate

GL is defaulted from customization (200170)
Select the entry and click on
Observe the Document status changes to Green and observe the Cash receipt balance.
3.2 Check Accounting Document generated
Select the line item and click on
Click on to see the document header as below:
The document header show details of Document type, Posting date, User details, Entry time/Date
etc. Click on Back arrow to come to cash journal screen.
3.3 Petty Expenses Posting- Cash Payment

Select and provide below details
The document is saved local and updates the cash balance as well as GL balance
At this point of time modifications are possible
Document status indicates that the same is posted to GL

Petty Expenses Booking- Cash Payment Display of Accounting Document
Select the line item and double click (or click on follow on doc)
3.4 Reversal of Cash Journal Postings

Select the entry to be reversed
From menu, select Edit Delete entry
Select and give Reversal reason
Press Enter and observe that the document is reversed.
To see reversal document, select the transaction and click on follow on Doc button.
3.5 Print Cash Journal
Click on
4 Foreign Currency Customization

4.1 Check Exchange rate types
Via Menus IMGSAP Net weaver General settings Currencies Check
Exchange rate types
Via Transaction Code OB07
Every currency which will be used has to be identified by a currency code. Most of the world's
currencies are already defined in the SAP R/3-System. Each currency code can have a validity
date.
For every combination of two currencies, different exchange rates can be maintained which are
distinguished by an exchange rate type. These different exchange rates can be used for various
purposes such as: valuation, translation, conversion, planning, etc.
Exchange rate types
ABC Group is using Standard SAP provided M, G, and B exchange rate types. So no new
Exchange Rate Types are created here.
If any additional Currency type is needed, click on add new types.
4.2 Define Translation ratios for currency translation

Via Menus SAP Net weaver General settings Currencies Define Translation
Ratios for Currency Translation
Via Transaction Code OBBS
Normally currency conversion is 1:1. For some currencies the denomination is different. This rate
has got to be maintained for each currency type and from each conversion.
The relation between currencies has to be maintained per exchange rate type and currency pair in
the translation factors. This usually has to be performed only once.
Currencies translation ratios
4.3 Check Exchange rates

Via Menus
SAP Net weaver General settings Currencies Enter Exchange
Rates
Via Transaction Code OB08
Exchange Rates
FAQs on Foreign Currencies

1. How can a document obtain exchange rate information?
From the Exchange rate table
From a manual entry in the document exchange rate field
2. What exchange rate types used for? List and describe five exchange rate types.
Exchange rate types are used for foreign currency revaluations and postings.
B (Bank Selling Rate)
G (Bank Buying Rate)
M (Average Rate) The default rate type for posting documents.
3. List the currency types used in FI?

The available currency types are transaction, group, hard, index, global, and company code (local).
Please note that this list is not exhaustive as other modules may also have their own currency types
(e.g., controlling area currency).
4. How many currency types can be used at one time for each company code?
Up to four currencies can be used for each company code. They are transaction, local, and up to two
optional parallel currencies.
5. Explain the base currency function?
A base currency is set up to eliminate the need for entering every possible exchange rate combination
into the exchange rate table. A base currency is established on the exchange rate type table for a
specific exchange rate. The base currency and base rate are then used to translate from Currency A
to the base currency and then from the base currency to Currency B.
6. Explain why a translation ratio is useful?

A translation enables SAP to process extremely large or small exchange rates that would exceed the
maximum allowable number of digits (i.e., 9999.99999 or 0.00001).
7. What are the prerequisites for posting a document using foreign currencies?
- Local currency must be defined in the Company Code Global Parameters
- The foreign currency must be defined in the Currency Code Table
- A translation ratio must beset between the foreign and local currencies
- An exchange rate must be defined between the foreign currency and the local currency in the
Exchange Rate Table.
5 Foreign Exchange Valuation
When clearing open items in a foreign currency, realized differences may occur due to fluctuations
in exchange rates.
This fluctuation causes exchange rate differences that the system automatically posts as realized
gains or losses.
The system automatically posts to the Revenue/Expense accounts defined for exchange
rate differences in configuration, thus eliminating the possibility of incorrect entries.
The realized difference is stored in the cleared line item.
Exchange rate differences are also posted when open items are valuated for the balance
sheet. These exchange rate differences from valuation are posted to another exchange rate
difference account and to a balance sheet adjustment account. When clearing an open item
that has already been valuated, the system reverses the balance sheet correction account
and posts the remaining exchange rate difference to the account for realized exchange rate
differences.
5.1 Executing Foreign Exchange Valuation
Via Menus Accounting Financial Accounting General Ledger Periodic

processing Closing Valuate Foreign Currency Valuation ( New )
Via Transaction Code FAGL_FC_VAL or F.05 (older version )
Provide below details
Go to open items tab
Go to G/L Balances
Click on
The Foreign Currency valuation is posted as per New Difference Column
Click on to see if there are any errors
If there are any errors it shows in Red color (Colored in red)- No of error message
There are no errors, it shows Green messages
Click on
Click on
5.2 Execute Batch Input session

Go to SystemServicesBatch InputSessions
Select Batch name in the below screen
Click on
Select Display errors in the below screen
Click on
5.3 Go to FS10N and check GL Account Balances posted
Click on
Observe that Forex valuation difference is posted and reverses in the next month.

Chapter 14 Cash Journal &amp; Forex Transactions

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CHAPTER 14 CASH JOURNAL & FOREX TRANSACTIONS

2.1 Set Up Cash Journal

2.2 Define number range intervals for cash journal

Input the company code and click on

Click on and click on . Ignore messages, if any.

2.3 Create, change, Delete Business Transactions

Press Enter and click on .

Transaction number is automatically generated.

Click on tab if a new Business transaction is to be created.

2.4 Define Document types for Cash Journal Documents

2.5 Set up Print Parameters for Cash Journal

3 Cash Book Transactions

Via Menus Accounting Financial Accounting Banks Incomings

To Change cash journal

Click on . The following pop up appears

Press (Enter) to proceed.

we can select date. Goes forward/Backward day wise.

we can select weeks. Goes forward/Backward weekly basis.

we can select Months. Goes forward/Backward on monthly basis.

To book Cash Receipts click on

To book Cash Receipts click on

3.1 Posting Cash Receipt

Posting a Cash Receipt: Select

Document status is updated with Appropriate

Select the entry and click on

Select the entry and click on

3.2 Check Accounting Document generated

Select the line item and click on

Click on to see the document header as below:

3.3 Petty Expenses Posting- Cash Payment

Select the entry and click on

Select the entry and click on

Document status indicates that the same is posted to GL

3.4 Reversal of Cash Journal Postings

From menu, select Edit Delete entry

Select and give Reversal reason

Press Enter and observe that the document is reversed.

3.5 Print Cash Journal

4 Foreign Currency Customization

Exchange rate types

4.2 Define Translation ratios for currency translation

Currencies translation ratios

4.3 Check Exchange rates

FAQs on Foreign Currencies

3. List the currency types used in FI?

6. Explain why a translation ratio is useful?

5 Foreign Exchange Valuation

5.1 Executing Foreign Exchange Valuation

Via Menus Accounting Financial Accounting General Ledger Periodic

Go to open items tab

The Foreign Currency valuation is posted as per New Difference Column

Click on to see if there are any errors

5.2 Execute Batch Input session

Select Batch name in the below screen

Select Display errors in the below screen

5.3 Go to FS10N and check GL Account Balances posted

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Chapter 14 Cash Journal & Forex Transactions

Chapter 14 Cash Journal & Forex Transactions