Valuation of Open Item in Foreign Currency | Exchange Rate ...

March 20, 2018 | Author: Anonymous | Category: Documents
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is, every open item of an account in foreign currency is valuated individually. Example of open items are customers, Ven...


VALUATION OF OPEN ITEM IN FOREIGN CURRENCY Purpose This wiki provides a demonstration of valuation of Open Items In Foreign Currencies Overview From the documentation the following is stated Valuation of Open Items in Foreign Currencies. Use  All open items items in foreign foreign currency are are valuated valuated as part part of the foreign currency currency valuation: valuation: 

The individual open items of an account in foreign currency form the basis of the valuation, that is, every open item of an account in foreign currency is valuated individually. Example of open items are customers, Vendors, or GL accounts managed on open item basis (SKB1-XOPVW = X)

The total difference from all the open items in an account is posted to a financial statement adjustment account. The account therefore retains its original balance. The exchange rate profit or loss from the valuation is posted to a separate expense or revenue account for exchange rate differences as an offsetting posting.  A valuation valuation cannot be be made by posting posting to the payables/rec payables/receivalbes eivalbes account, account, since since reconcilation reconcilation accounts cannot be directly posted to. For this reason the amount is posted to an adjustment account, which appears in the same line of the balance sheet as the reconciliation account. Step 1 - General customizing Local currency of company EUR Implementation Guide: Financial accounting (New) -> Financial accounting global settings (New) -> global Parameters for company code - Transaction code OBY6

Exchange rate 1 USD = 1,7 EUR Implementation Guide: SAP NetWeaver -> General settings -> Currencies (check all settings) -> Enter Exchange rates (Transaction code OB08)

Step 2 - Create Invoice SAP Easy Access -> Accounting -> Financial accounting -> Accounts payable -> Document entry -> FB60 Invoice Post document Display document posted via FB03

Change in exchange rate occurs 1 USD now equals 1,63 EUR

SAP Easy Access Screen choose -> Accounting -> Financial Accounting -> Accounts Payable > Accounting -> FBL1N -Display/Change Line items

Step 3 - Review of Foreign Currency Valuation customizing Prior to performing a foreign currency valuation review of customizing: Implementation Guide:Finanical Accounting (New) -> General Ledger Accounting (New) -> Periodic Processing -> Valuate

Define Valuation Methods

Define valuation Areas

Define Accounting Principles

Check Assignment of Accounting princples to ledger Group *required if you have more than one ledger

Perpare Automatic Postings for Foreign Currency Valuation

Select Transaction KDF, enter Chart of Accounts

The Target Accounts for KDB/KDF can also be defined per valuation area

 Account Determination per Valuation Area

Step 4 - Perform Foreign Currency Valuation To perform a foreign currency valuation, from the SAP Easy Access Screen, choose Accounting -> Financial Accounting -> General ledger/Accounts Receivable/Accounts Payalbe -> Periodic processing -> Closing -> Valuate -> Foreign Currency Valuation (New) Transaction FAGL_FC_VAL (Program FAGL_FC_VALUATION)


Click on Postings button

To create valuation documents create postings must be ticked on, if you execute without create postings ticked, this means that program is run in test mode.

If there are errors when posting, a batch input session is created (transaction SM35)

Update run is saved in table FAGL_BSBW_HISTRY

This avoids that a valuation run for the same valuation (key date) can be repeated.

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