Balance in Local Currency Only (BILCO)

Brendan O'Brien on Aug 13, 2010

SAP manages the balance of a G/L Account in Transaction as well as Local Currency. If the
Balance in Local currency (BILCO) Flag is set in the G/L Account master data then SAP
maintains the balance of the G/L Account in Local currency only. All the transactions posted
in Foreign currency are translated to local currency using exchange rate type 'M'.
Account with BILCO Flag only have an impact on the summary Table (GLT0) where the local
currency amount is also stored in the transaction currency amount field. The line item tables
(BSEG, BSIS, BSAS) are not impacted in any way and store both the transaction currency
and local currency amounts.
SAP uses summary table for foreign currency valuation of Non Open Item Managed
Accounts. Hence, there is a direct impact on valuation because the balance in transaction
currency is not maintained. There is no problem with foreign currency valuation of Open
Item Managed accounts as SAP uses Line Item Tables.
SAP recommends the usage of BILCO Flag for,
(A) Cash Discount Clearing Accounts
(B) GR/IR Clearing Account
Account with BILCO Flag set are easy to clear as clearing can be done in local currency.
If the status of the BILCO Flag is required to be changed after an amount has been posted
to the account, then it is only possible to do so after bringing the account balance down to
ZERO.

& SAP Description:

Defining the Account Currency

Use
When creating a G/L account, you must define the currency in which the account is to be
kept.
This defines the following:

•The currency used for postings made to this account

•The currency in which transaction figures are updated and the account balance is displayed
You specify the account currency in the company code area of the G/L account master data.
This allows you to keep the G/L account in the local currency of each company code. This is
especially useful for international groups that have all subsidiaries use the same chart of
accounts but with the accounts kept in the local currency.
.

Features
When setting the account currency, you have two options available:

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 Enter the local currency of your company code.
The system automatically uses the local currency that you defined when creating the
company code as the default value.
This allows posting to the G/L account in any currency. When you make a posting in a
foreign currency, the amount is translated into the local currency. For more information, see
Posting a Document in a Foreign Currency.
The transaction figures are kept as follows:
 In the local currency, that is, the total of all the amounts posted in the local currency
 In the individual currencies, that is, the total of all the amounts posted in various
currencies.
 Enter a foreign currency. This is a foreign currency balance sheet account.
The G/L account can only be posted to in this currency.
The transaction figures and the account balance are kept in the foreign currency entered
and in the local currency.
Please also read from the below link to get a wider overview:
http://wiki.sdn.sap.com/wiki/display/ERPFI/
How+to+understand+different+currency+displays+in+transaction+FAGLB03
How to understand different currency displays in transaction FAGLB03
Purpose
The purpose of this article is to provide an understanding of the display logic of the
FAGLB03 transaction when considering different currencies. Examples will be provided in
order to help explain the topic as much as possible.
Overview
FAGLB03 is a very useful transaction when it is necessary to view the overall balance of a
General Ledger account (or collection of accounts) for a specific fiscal year. In addition to
this, depending on your customising, you can view each balance in different currencies by
selecting different options. Therefore it is very important to have a full understanding of the
display options in FAGLB03 in order to use the transaction correctly.
Step 1 - Overview of Local Currencies
The first thing to know when looking at balances in different currencies is what Local
Currencies are active for a particular company code. You can check what reporting
currencies are activated for a particular company code by checking the transaction OB22.

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In this particular example, our Company code 0001 has two local or reporting currencies:
The first is the Company Code currency of EUR (currency type 10). The second is a Group
Currency of USD (currency type 30).
Step 2 - Viewing all transaction currencies
By default, when you first access FAGLB03, it is generally the case that all
documents in all transaction currencies are displayed initially and the balance is
viewed in the company code or 1st local currency.

Here it is important to understand that the field "{*}All Documents In **" means that all
documents, posted in all different transaction currencies are represented here in the balance
output. The field "Display Currency" signifies which currency the actual total balance is
being displayed in. So for example, even if a document is posted in GBP (British Pound), its
EUR equivalent value will be displayed in the balance output on screen.
Step 3 - Viewing specific document/transaction currencies
If you wish to view balances for a certain specific set of posted currencies, you can use the
"Next Document Currency" (Ctrl + F1) button to scroll through the available currencies:

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...or alternatively you can use the "Other Display Currency" (Ctrl + F3) button to choose
which document currency you want to view:

It is important here to note that when you scroll between document currencies like this the
output is displaying the value for the same currency. For example:

What this essentially means, in this example, is that only documents posted with a
document currency of EUR are represented and that the output balance shown is
also in EUR. No other documents posted in any other document currency are
represented.
Step 4 - Changing Display Currency
In contrast to the last step, if you wish to show the balances for ALL documents posted in
all document currencies in a different display currency then you can do so using the
"Change Display Currency" button (F6)

Alternatively you can select the same on the selection screen for FAGLB03 using the
"Currency Type" button (Shift + F8):

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If we select Group currency, which in our case is USD, we will see on the output screen that
all documents in all document currencies are displayed in the currency of USD:

This option only works of course if you have additional local currencies set up for display in
transaction OB22.

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Also, the same display can be achieved on the display screen using the "Change Display
Currency" button.
Conclusion
So in conclusion, it is important to remember that you can view ALL documents posted in all
different document currencies under any of the local or additional local currencies defined in
customising (transaction OB22). It is also possible to display the balance for a specific
document currency individually also; but it is only possible to display the balances for those
specific collection of documents only in the currency being selected.
Related Content
Related Documents:
How to use transaction FAGLB03 - General Ledger Account Balance Display
GL Account Balance Display - FAGLB03

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