Accounting Principle role in Foreign Currency Valuation

Dear Frns,
Why do we create an Accounting Principle in Foreign Currency Valuation and assign the same to the Ledger Group.
Regards,
Venkata

Hi Venkata,
The Assignment of Accounting Principle to Ledger Group is to ensure that the system knows to which ledger group the valuation is to be done. Since we can valuate the foreign currency documents to ledger specific posting as well.
Say there is one ledger pertaining to Leading ledger 0L and another non leading ledger L1, where 0L is pertains to US GAAP and L1 pertains to IFRS. So based on requirement, during the execution of FAGL_FC_VAL, you specify valuation area which will post to those areas.
Hope this is clear.
Regards,
Rithin

Similar Messages

  • Accounting document created after foreign currency valuation

    Hi SAP Gurus,
    Please help on below queries:
    1. Is it correct that Accounting document is automatically created when foreign currency valuation (F.05) was run and  'Reverse Posting' was ticked? Does it mean that two document will be created; one is for Revaluation Journal and the other one is for Accounting Document?
    2. In relation on above question, is it correct that Accounting document and Revaluation Journal have the same posting date and amount?
    3. When Accounting document and Revaluation Journal have the same posting date and amount does it mean that the account has not been revaluated?
    Appreciate your advise. Thank you.

    There will be two accounting documents generated, one for posting the revalution and the other for the reversal (if reversal is activated). The reversal dates can be given manually else system takes the 1st of the N+1 Period. The revaluation posting date will be taken from the date given in 'valuation date'.
    Warm Regards
    Nitika

  • GR/IR Foreign Currency Valuation

    Should the GR/IR account be considered for foreign currency valuation??   Right now I have them to accept "Balaces in local currencies only"  Would they be valuated or I will have to unselect that check box?
    Also, I have other Balance sheet GL accounts which have "Balances in local currency only". Would I have to uncheck that to do the foreign currency valuation??

    anthonyb:
    Did you get the solution for this, if so can you please share with us!
    Thanks in Advance
    JB

  • Foreign currency valuation for GR/IR clearing account is repeatedly posting

    While executing foreign currency valuation (program SAPF100) through T code F.05 the following fields are selected for the spotted rate valuation for currency type 10.
    A)     Valuate G/L account open items
    B)     Evaluate  GR/IR account (GR/IR clearing account is selected)
    C)     Valuate customer open items  
    After execution the valuation postings are repeated  in GR/IR FC valuation Balance sheet adj account while the postings in other accounts occur only once.
    GR/IR FC valuation Balance sheet adjustment account is configured in OB09 for GR/IR account for respective currency type and local currency.
    What could be the reason for repeated postings in FC valuation account?

    I think there is some issue with the process, normally vendor/customer reconciliation account or some liability assets related account which has impact due to foreign currency rate changes needs to be revaluated. I don't understand why you have set up foreign currency valuation for GR/IR account, these are intermediatory account which reflects in system between for example GR and IR.
    I also think that you need more information on foreign currency valuation, basically it happens on a particular key date and gets reversed on key date + 1, because revaluation is only required on a key date for reporting purposes. on the next day it get reversed and actual loss or profit on foreign currency only gets booked on realization.
    Hope this helps!!!
    Murlidhar Khatri

  • Foreign currency valuation differences for reconciliation accounts

    Hi gurus,
    we have run the transaction FAGL_FC_VAL - Foreign Currency Valuation (New), now i try to make a report summirazing valuatin differences of the open line items by customer, vendor and gl account. however i cannot found the tables which the valuation differences are recorded. ( i dont find the values in the table bsbw in any FI document)
    the customizing is (tcode oba1)
    Exchange Rate Dif.: Open Items/GL Acct:
    for customers:
    G/L account:     1201xxx
    Bal.sheet adj.1: 1209xxx
    loss: 65xxxxx
    gain: 64xxxxx
    can you help me?
    thx.

    Is there any way to keep track of FC valuation differences by customer basis?
    i dont see how much FC differences occured for a spesific customer!

  • Foreign Currency Valuation not posted to GL account

    Hi,
    While I run foreign currency valuation even tick on check box of Create Posting button under FAGL_FC_VAL it show me summary report and posting tab it show me properly Debit/Credit entry on last day of month and 1st of month it become reverse as usual. But while I go through respective GL account of "Forex Unrealised Profit" and " Foreign Exchange Adjustment" account in FBL3N it does not show me line ietms result after running foreign curreny valuation. It should show the result in respective GL accounts where line items are tick in each GL accounts and valuation method I use EVR(always valuate). Why it is happening ?
    Best Regards,
    Anindita

    Hi,
    After executing FAGL_FC_VAL, do you execute Batch Input Session in SM35. If no then
    When you execute FAGL_FC_VAL you will find the field called Batch Input Session name where you have to give a name for e.g. FOREXVAL. Once you execute it then system creates Batch Input Session in SM35. So go to SM35 and select the session FOREXVAL and click on Process icon seen on the top and select Display errors only and press ok.
    Regards,
    Chintan Joshi.

  • Foreign Currency valuation on Foreign currency items posted in Local currency accounts

    Hi Gurus,
    I have accounts maintained in local currency and only balances in local currency is not checked. Some items are posted in foreign currency.
    Now system is doing foreign currency valuation on foreign currency balance of this account. I dont want system to do that.
    Now how to correct it. I can make balance zero of account and then mark that tick of only balances in local currency but still system will do foreign currency valuation on items posted.
    Appreciate you help in solving this issue. How to handle it?
    Thanks

    Hi ,
    While executing Foreign currency valuation, you can select the GL accounts for valuation. Try to not input these local currency GL's.
    Cheers,

  • Post foreign currency valuation for special G/L accounts

    Dear experts,
    Our client wants to evaluate the balance of down payment account after each partial clearing with invoice.As down payments are being posted by special G/L indicators, they are not able to post to the down payment account directly.
    and there is no possibility to post foreign currency valuation by SG/L indicators in F-05 and FBB1 transaction codes.
    Could you please tell me how we can evaluate a SG/L account directly?
    Best Regards,

    Hi Rezvan,
    That is not possible also this is not required.
    Because unrealized gain/loss we post to Balance sheet adjustment account and Fx gain/loss accounts.
    We don't post any differences directly to sub ledgers.
    you can use F.05 or FAGL_FC_VAL trasanction for Foreign currency valuation.
    where you can have option of valuate the Spl GL too in selection screen.
    Also
    When you select Vendor option in FAGL_FC_VAL, program valuates all the line items including special gl items.
    And this valuation difference can be posted to balance sheet adjustment account which you maintain in OB09.
    Regards
    Atul

  • Balance sheet adjustment account for Foreign Currency Valuation

    Hi all,
    I know that we enter AP /AR balance sheet adjustment account for Open items account when we configure for Foreign currency valuation with Tcode OBA1 and KDF. I wanted to know what account can I enter in that field for other balance sheet account which are not open item managed?
    Also, Do we valuate GR/IR accounts in foreign currency valuation??  If yes, what balance sheet adjustment account do we enter for those accounts?
    Thank you.

    HI,
    The valuation of <b>foreign currency balances</b> requires a special key that is assigned the gain and loss accounts for posting any exchange rate differences that occur during valuation. You can freely define this key. You then enter it in the master records of the accounts that you want to valuate. To post the differences that are determined from a group of G/L accounts to the same gain or loss accounts, enter the same key for all these G/L accounts.
    Create the Create here with Tcode OBA1 and KDB-Exch. Rate Diff. using Exch. Rate Key
    And assign this in the GL account master in the Control Tab.
    Thanks
    Vijay

  • Foreign Currency valuation accounting entries

    Dear friends
    At the time of revaluating foreign currency at period end, an accounting entry gets generated, which is reversed on 1st day of the next period. As per my understanding, the entry is as below -
    Forex Loss Dr
    Vendor Adjustment A/c
    My question is whether the Vendor adjustment G/L is a Recon a/c? Also, in what transaction code, this customization is done?
    Thanks in advance
    Amit

    Hi,
    Please check all your settings correct or not?
    Step1: Forex Rates should be maintained OB08
    Step2: Define Valuation Methods
    Step3: Define Valuation Areas
    Step4: GL Account Creation for Forext Loss and Gains,
    Step5: Assign GL Acconts
    Step6: Foreign Currency Valuation T Code: FAGL_FC_VAL
    Thanks
    Chandra

  • FOREIGN CURRENCY VALUATION ADJUSTEMENT ACCOUNTS.

    HI,EXPERTS
    I WANT TO CALCULATE FOREIGN CURRENCY VALUATIONS FOR VENDORS AND CUSTOMERS OPEN ITEMS,
    SO I HAVE TO CREATE BALANCE SHEET ADJUSTMENT ACCOUNT IN FS00..
    IS IT RECONCILIATION ACCOUNT OR NOT?  HOW CAN I  THIS ACCOUNT ACTIVATE IN CUSTOMIZATION?
    DO I HAVE TO CREATE 2 ADJUSTMENT ACCOUNTS ,1 FOR VENDOR PAYABLES AND ANOTHER  FOR CUSTOMER
    RECIEVABLES?
    REGARDS,
    THANKS IN ADVANCE.

    Hi,
    separate G/l is useful of reporting  so use the below settings
    Customer Reconcilation account     - change if vendor reco account
    Loss G/L     -For  customer & vendor same G/L
    Gain G/L     - For customer & vendor same G/L
    valuation G/L -1     - For  customer & vendor same G/L
    valuation G/L -2     - For customer & vendor same G/L
    Debtors Ex.Rate Diff Adj. A/c     - use vendor ex. rate  diff a/c.
    assign points if hep full for you.
    Regards
    Aditya

  • Error while running the foreign currency valuation

    hello frnds,
    i got the following error while running the foreign currency valuation.
    No accounting principle assigned to valuation area
    Message No.fr894
    Diagnosis
    In customizing the valuation area is not assigned to an accounting principle. You can use the accounting principle to define the general ledgers in which posting takes place.
    System Response
    Error msg
    Procedure
    Assign the valuation area to an accounting principle.
    Above is the error message, but I created valuation area and assigned it to an accounting principle.
    Guide me with some inputs.
    Regards,
    Siva

    Hi,
    Please check the following path
    IMG > Financial Accounting (New) > Financial Accounting Global Settings (New) > Ledgers > Parallel Accounting > Assign Accounting Principle to Ledger Groups
    Whether you have defined the Accounting Principles to Ledger Group?
    Regards,
    jigar

  • Regrouping , Foreign currency valuation

    Hi All,
    Can anyone explain the use of regrouping(F101) and foreign currency valuation (F.05) ?

    Hi Manisha,
    Please find below mentioned the functionality of the reports.
    F.101-This report groups the receivables and payables according to a required
    list, for example, the "EU Guideline No. 4", and carries out transfer
    postings.
    Additional adjustment postings are necessary in the following cases:
    o   Customers with credit balances and vendors with debit balances
    o   Changed reconciliation accounts or partner (affiliated company)
    o   Display of investments
    All accounts that are managed on an open item basis are taken into
    account.
    Sorting of items:The decision as to whether an account is sorted according to receivables or payables depends on the financial statement value of an account. This is the balance of the account per reconciliation account and remaining
    life. If several accounts are connected by the same trading partner, the joint financial statement value of the account group created determines
    the type of sorting. If the balance is positive, the account is sorted
    according to receivables, if the balance is negative, the account is
    sorted according to payables. You define the sort methods required in
    Customizing.Alternatively, several accounts can be summarized in a group whose joint balance is used for sorting. The definition for the corporate group is
    used as group definition for customers and vendors. For G/L accounts,
    there is a separate field in the G/L account master record.
    For credit memos with an invoice reference, the due dates are taken from
    the invoice.Vendors with debit balances and customers with credit balances are
    determined separately for each point in the sorted list, since only
    items with virtually the same remaining life may be balanced with each
    other.
    The documents are totaled under the current reconciliation account of
    the customer or vendor master record. If the reconciliation account is
    changed, the amounts are transferred from the old reconciliation account  to the new reconciliation account.
    Investments: In some countries (for example, France), investments must be displayed  separately. You use parameters to select this additional display. The
    investments are then displayed as a total per reconciliation account and
    transferred.
    Postings
    For every transfer posting created, a reverse posting is also entered in
    the session. For reconciliation accounts in the customer or vendor area,
    postings are also made to an adjustment account.
    If you use a target company code, all items are summarized under the
    target company code and then processed. The company codes selected must
    be managed in the same currency however (for example, local currency,
    group currency).
    If you use an alternative valuation area, account determination for the
    transfer posting is carried out from the valuation area selected.
    ==========================================================
    F.05- This program carries out the foreign currency valuation.
    The following items/accounts are valuated:
    o   Open items
    o   Foreign currency balance sheet accounts. This means G/L accounts
        that are managed in a foreign currency.
    You have the following options for the foreign currency valuation:
    o   You can carry out the valuation in local currency or a parallel   local currency (for example, group currency).
      You can use different valuation methods (for example, HGB or US
      GAAP).
    e result of the valuations can be stored per valuated document and
    sted to adjustment accounts and P&L accounts.
    ation process
    lection
      Open items:
      The customer, vendor, and G/L account open items on the key date a
      read and balanced by account or group and currency.
      G/L account balances:
      Reconciliation accounts and accounts managed on an open item basis
      are not valuated. P&L accounts are only valuated as required: See
      also: "FASB 52 Translation".
    Grouping
    The documents or balances are balanced by currency and account (or
    group/valuation group). The exchange rate type for the valuation is
    determined from this balance.
    Valuation
    o   Open items:
        The items that are untranslated at the key date are summarized per
        invoice reference or account/group.
        If the result does not correspond to the method selected, for
        example, if a profit arises using the lowest value principle, no
        valuation difference is output.
    o   G/L account balances:
        The balance is translated per currency and account/group on the key
        date. The valuation difference determined is compared with the
        valuation method specified (for example, lowest value principle).
    Hope this helps. please assign points.
    Rgds
    Manish

  • Error when using automatic clearing (F.13)with foreign currency valuation.

    Hello all
    below is our problem, please suggest us a solution
    We are experiencing a problem when running the automatic clearing in SAP. Somehow, the system seems to clear (with no reason) open items created with the revaluation of foreign currency.
    Let's say that we run the valuation of open items in foreign currency for December 31, and we run the program to post the reverse entry as of  January 1 of the next year. As a result of this valuation, the system calculates a loss of 10 euros. Therefore, it posts a document with a debit entry of 10 into the Loss account, and a credit of 10 in to account where the valuation was carried out. This document has a posting date of December 31. The batch program also creates the reversing entry, this time a credit entry into the Loss account, and a debit into the original account.
    If now, we try to run the automatic clearing (F,13) on December 31 for those accounts, the system will create (automatically) a document on December 31, similar to the reversing entry that the valuation created, clearing at the same time, the first document that the valuation originally created.
    The final result then is that the valuation makes a posting, and we end up having two reversing entries. Does it make sense?
    In our scenario in the system P70, for MX10, we have a foreign currency valuation run on December 31st, which posted the document numbers:
    1)  5100004579/2008, for a total of  0 euros, and 240,483.17 MXN. Credit to account 11081108 Finavigate cash receipt bank collect.CMG MXN.Debit to account 18601000 Losses f.foreign curr.valuation on financial trans
    2) In the same batch, the system also books a reversing entry (doc 5100000042/2009) with posting date 01.01.2009 with exactly the same opposite entries as in the previous document.
    3) After this, we run the automatic clearing with posting date 31.12.2008, and now, the system creates automatically the document 5000003236/2008, which clear the original document, 5100004579.
    The final result, as you can see, it's out of balance, there is an additional document that we need to reverse.
    Thanks in advance
    sujatha

    To my knowledge you get do two things:
    1. In F.13 transaction don't include both the GL accounts where the Dr. and Cr. posting from the valuation run have taken place. With this the system won't find the matching entry.
    2. If you want to use all the GL accounts in F.13, then check the clearing procedure configuration and make suitable changes.
    With the info provided, this is the only thing I can suggest.
    Regards,
    ~Vishal.

  • Error while running foreign currency valuation program FAGL_FC_VAL

    Hi
    this is regarding foreign currency valuation in ECC6.0 with EHP4
    i have done the revevent setting in spro and while execturing TC FAGL_FC_VAL agetting following error:-
    Incorrect account determination: 1000 10 200010
    Message no. FR257
    in customization, i have assigned P&L and balance sheet account against above GL (OBA1 -> KDF).
    any idea where i am wrong. Please reply.
    regards
    DD

    Hello Devi,
    This account managing with open item? Can you check G/L account master data?
    If yes,
    You should check your customizing OBA1 -> KDF. I think you filled currency and currency type on OBA1-KDF. If you don't have different P&L ve balance sheet adjustment account for each currency and currency type, you can pass initial for this field. ıf you use different balance sheet adj. account or P&L account for each item, you must assign write criteria.
    For example your company code currency is USD and you have a customer reconcilation account which has EUR currency, you should assign EUR currency for this account on OBA1-KDF. Please check in FS00 for this account, exchange rate difference key must be empty if this account managing with open item.
    Regards,
    Burak

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