Automatic valuation of foreign currency

hai friends,
I know the manuval valuation through tc: f.05, pls advice how foreign currency valuated automatic, how to see it
thnx in advance
Regards
rsr

Hi Ajay,
Kindly advise on how to do the config. We need to separate the AR and AP adjustment only for the unrealized Forex/Gain or Loss.
But looking at the screen in OB09, there's only 1 field for the bal.sheet adj.loss and another field for the bal.sheet adj.gain.

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11i valuation of foreign currency expenses

Hi everyone,
The Polish Legal requirement of valuation of foreign currency expenses is to value of these expenses and exchange rate differences at currency cost layers (by historical rates), not at current exchange rate!
It works exactly the same as material transaction costing, that is foreign currency expeses are valued:
1) at FIFO (First in, First out),
2) at LIFO (Last in, First out),
3) at Average (average value).
Each company have to choose an method of valuation for his foreign currency expenses.
Example:
1) Foreign currency is USD, functional currency is PLN
2) current balance of USD account = 1,000USD, PLN account = 2,338.00PLN
where:
- 600USD x 2.35PLN/USD(ex rate) = 1410PLN
- 400USD x 2.32PLN/USD = 928PLN
2) The company applies FIFO costing for valuation his foreign currency expenses.
So, for example, 800USD payment has to be valued as following:
800USD = 600USD x 2.35PLN/USD + 200USD x 2.32PLN/USD
So, question:
Do You know any functionality in 11i in GL, AR, AP or CE module that allows us to value the foreign currency expenses like above?
Maybe, do You have any experience with it?
I will be grateful for any solutions.
Thanks a lot.

Hi Ajay,
Kindly advise on how to do the config. We need to separate the AR and AP adjustment only for the unrealized Forex/Gain or Loss.
But looking at the screen in OB09, there's only 1 field for the bal.sheet adj.loss and another field for the bal.sheet adj.gain.

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,

Valuation Methods - foreign currency valuation

Hello
I am trying to understand the concept of different valuation methods. could you explain using examples please ?
Say for instance, a goods receipt is raised in USD for 100USD on 2 Jan 2009 and local currency is EUR. Exchange rate is 1EUR : 1,5USD. On 4 Jan 2009 invoice received at rate of 1EUR : 1,6USD.
What are the implications of the options lowest value principle, strict lowest value principle, always valuate and revalue for such a transaction?
tks

Those are different ways of valuating your Foreign Currency Operations depending or the country regulations:
1- Lowest value principle means that the Valuation will be posted only if it is giving a negative result.
2- Strict lowest value principle will be post valuation only if two conditions happened:
A - The valuation is negative
B - The new valuation has a greater devaluation and/or a greater revaluation for credit entries than the previous valuation
3 - Always Valuate: No matter if it is possitive or negative, the valuation will be posted.
4 - Revalue only: The opposite of the first one, valuation is only posted when possitve.
5 -Reset Valuation Run: In this case open items are valuated at the acquisition price. This way the valuation difference is set to zero. This is useful to reset previous valuations
Regards,
Fede

What is month end valuation in foreign currency?

what is month end valuation in foreign currency? by doing this what entries will be passing?

Hai venu my id is vijayamsrinivas yahoo.co.in
system is not accepting at the rate. so i have ginen space. my no:9739285428
thanks

Automatic translation into foreign currency

Hello
I'm trying to add a warning message to accounting view in creating material (MM01).
The reason is the exchange rate. If i change the moving price and do not click on the "translate from local currency" button, it let me save the material with the wrong exchange rate.
In trasaction MR21 it gives me the warning message: "No automatic translation into foreign currency occurred".
Is there a way to add this message to MM01??
Thanks

Hi Enrique,
The final step in CKMLCP enters future prices for all materials based on the actual prices of the period.
You could Use CKMPRPN the 'maintenance of future prices' with it's rule based approach to change the data before activating with CKME.
You could
1. delete the group currency future prices (CKMPRPN)
2. release the new standard prices in company code currency (CKME)
3. create future prices in group currency by adopting the (previous month's) V-price as future price (CKMPRPN)
4. release the new standard prices in group code currency (CKME)
I am not sure if you could also distinguish the validity dates between both currencies with CKMPRPN. If yes, that might be better than deleting and rebuilding the price.You could change the date for one currency into the future, use CKME, change the date back and use CKME again.
A disadvantage of the procedure would be that you will not release the cost component split from CKMLCP. In step 4 only the new price will be released and the split will be created from the former split. In step 2 the original split from CKMLCP will be activated.
best regards,
Udo

Valuation of Foreign Currencies - Urgent

Hii all of u ..
Plss explain me how to valuate the foreign currencies for a key date and what r the requirements to do that..
Plsss let me know the detailed description about this..
It is very urgent to me plss help me.
I did configuration but i dont know whether it is correct or not..
Thanks & Regards.
Ramki
Ramkiveera at GMAIL

Dear Ramki,
Steps for FC Valuation.
1) Create valuation area
2) Link Chart of accounts/co code to valuation area.
3) Define exchange rate type for valuation of
Customers/Vendor balances
GL/bank balances
Execute transaction F.05
Assign points if found useful.
Thanks & Regards
Sanjay Marathe

Valuation of Foreign Currency

Hi Experts,
I have already performed the needed configuration prior to the execution of foreign currency valuation in FAGL_FC_VAL.
Exchange rate were also maintained in OB08.
I tried to simulate the report using key date 08/01/2014.
However, there are some documents that were revaluated while some are not. Pls advise why there are documents that are not valuated.
Pls advise also why there are line items where GL accounts are <missing>.
Also, does reversal of entries are automatically executed even if I did not indicate the reversal date?
Thanks.

Hi Ajay,
Kindly advise on how to do the config. We need to separate the AR and AP adjustment only for the unrealized Forex/Gain or Loss.
But looking at the screen in OB09, there's only 1 field for the bal.sheet adj.loss and another field for the bal.sheet adj.gain.

Valuation of foreign currency CML by TPM1

Hi Team,
We have a contract loans (CML) capitalized interest, the foreign currency rating for the areas of valuation for the calculation by TPM1 is doing excluding capitalized interest.
In FNSA works well.
Any of you can help me what else I can check?
Tks
Paula

Hi Ajay,
Kindly advise on how to do the config. We need to separate the AR and AP adjustment only for the unrealized Forex/Gain or Loss.
But looking at the screen in OB09, there's only 1 field for the bal.sheet adj.loss and another field for the bal.sheet adj.gain.

FOREIGN CURRENCY VALUATION QUERY

I am doing a customer invoice posting in USD for 1300$ (INR 46 Rupees) - Tcode F-22
If I do a customer incoming payment for a total amount of 1300 $ (INR 47 Rupees) - Tcode F-28 - Here the system is creating a line item automatically generated for Exchange gain and posting the gain amount directly to Exchange gain account.Here I need not do any valuation of foreign currency.
But in a scenario when the customer is doing a partial payment of 400$ (INR 47 rupees) - Tcode F-28 then system is not creating a line item for Exchange gain for the profit on 400$. When I do the valulation run through FAGL_FC_VAL then only system is crediting the exchange gain a/c.
Now if i want the exchange gain amount to automatically credited when I do the partial payment also, i.e., if I need the line item Exchange gain account to trigger automatically when I do the partial payment instead of running the FAGL_FC_VAL then is there any option for the same.
Regards,
Padmavathi

Hi JP,
While making Partial Payments also you can post forex gain/Loss but for that a little configuration is required. The IMG path is :-
Financial Accounting Global Settings (New)>Global parameters for Company code>Currencies>Indicate Currency Differences for partial payments.
Here against the document type, which you are using for making partial payments you have to tick that doc type and then the Forex gain/Loss gets posted even on partial payments.
Hope this help
Regards,
SAPFICO

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

Foreign Currency valuation- balance sheet preparation valuation

Hi,
I have a doubt in foreign currency valuation.
When we tick Balance sheet preparation valuation ( in t-code F.05), no reverse postings are generating, eventhough i tick reverse postings. why is this happening?.
What is happening when we use Balance sheet preparation valuation in Foreign currency valuation?
Thanks,
Vinay

Vinay,
Yes as explained earlier it converts balance sheet from one( Local) currency to Another (foreign) currency on a particular date.
For example if your balance sheet currency is EUR and your foreign currency is USD. It will convert EUR into USD on that particular date on all open items and post it to
the expense and revenue accounts for exchange rate differences from valuations. For payable and receivables accounts you must also define the financial statements adjustment accounts.
This is what it happens check your own thread
http://scn.sap.com/message/14258690#14258690
Best regards
Hrushikesh

Relating to Foreign currency valuation

what are the general entries generated when we valuate the foreign currency.
when its gain / loss
i want the two entries so please provide me.
And how we update the Valuation fields of exchange rates every month.

Hi
If there is a gain on exchange valuation it is credited to the GL account assigned for exchange gain/loss account and debited for loss occurred.
If the account is an open item managed account, the valuation can be adjusted against a balance sheet adjustment account. Hence if there is a loss, it should be like
Exchange loss Dr.
Bal Sheet Adj A/c. Cr.
and vice versa for a foreign exchange gain.
Regards

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

Difference between Foreign Currency Valuation & Translation

What is the difference between Foreing Currecy Valuation (FAGL_FC_VAL) & Foreing Currency Translation (FAGL_FC_TRANS) ?
help.sap.com

Hi,
Foreign currency valuation FAGL_FC_VAL is a place where we valuate the foreign currencies to the particular local currency and post the differences to either exchange loss or gain.
Foreign currency translation helps us to transalte the forein currency to loacal currency with out calculating the gain or loss derived from exchange.
Parallel currency can be valuated in T-cd:FAGL_FC_Trans.
Thanks,
Shilpa.A
Edited by: ashilpa54 on Mar 22, 2011 9:37 AM

Automatic valuation of foreign currency

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