F.05-Curr Translation - System not picking correct accounts from FBKP (KDF)

Question

Hi FI Gurus,
We are having  INR as Company Code Currency & USD as  Group Currency.
We have given a diff set of accounts in FBKP-KDF for valuation and translation.
When we run F.05 for translation with Currency Type 30, the system is correctly converting all INR line items into USD  but while posting the accounting document the valuation accounts are getting picked up instead of translation.
In debug, we found out that the system requires Clearing Document to go for Translation accounts & if it gets the clearing document in line item then  it is picking up the  correct accounts.
But then how the translation works for P&L accounts or balance accounts?
What is the exact functionality of Translation? How postings can be generated to correct accounts?
Regards
AK

Answer 1

Make the following entries in F.05 and execute.
General Selections:
1. Enter comany code
2.Valuation Key Date
3.Valuation  Method
4. Valuation in Curr Type: 30
Under Posting:
1. If you are running it in a test mode, then do not check the boxes Bal. sheet preparation valuation and Create Postings.
2. Enter document date, posting date and period
3. Check the box: Reverse Postings
Under Open Items
1. Check Valuate G/L Account Open Items
2. Specify your G/L Account Numbers
3. Check the radio button: Valuate GR/IR
4. Check the box: Valuate Vendor Open items
5. Check the box: Valuate Customer Open Items
Under G/L Balances
1. Check the box: Valuate G/L Account Balances
2. Specify your G/L Account Numbers
Under Other
In our system, we created a variant and entered it in the blank field next to List Variant.
Under FASB 52
1. Exch. rate type for translation: Enter your exchange rate type here.
2. Check the box: Use for translation
3. Translation of currency type: 10
Execute your report.
Point of Note: None of this would work if you have not configured your foreign currency valuation properly. To get FCV working can be very frustrating and you would need to take your time. We have been working on ours for almost 7months now so patience and more research would help.