CURRENCY VALUATION - BANK ACCOUNTS

I wanted to know how you manage currency valuation with regards to daily reporting of Foreign Currency Bank Accounts in Local Currency
I am on Version 4.6C and do valuations monthly so that we are able to value our Foreign Currency Bank Accounts at the prevailing exchange rates as at the end of the respective reporting months.
When I look at the retail Banks, they manage various accounts for their Clients in Foreign Currency and am sure that whenever Clients call for their balances in Local Currency they are able to be read from the system at the rate prevailing as at the date of inquiry.
Is it possible that currency valuations are done daily immediately after updating the dayu2019s exchange rate?
Is it also possible that there exists a particular config set up that enables the translation in local currency without necessarily making the requisite valuation postings (unrealized gains/losses in currency translations)?

For banks, translating daily is necessary as they need to give those numbers to customers.  For corporations, I don't see a need to valuate them daily as you don't need to report numbers daily.  Financial statements are prepared at least in monthly intervals, I guess; and you only need to valuate before you draw financial statements.  I have never come across a configuration that enables translation/valuation without necessarily making postings.  I don't think there is one!

Similar Messages

  • 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

  • Currency Create Bank Account Transfer in CE R12.1.3

    Hi,
    I would like to ask about different currency when we tried to create Bank Account Transfer.
    Can we transfer IDR currency to USD ?
    Transfer date: 03 Oct 2012
    Currency: USD
    Transfer Amount: 1500
    Bank Source: IDR
    Bank Destination: USD
    it supposed to be okay but when tried to validate, there was error:
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    Kindly need help
    Thanks
    Findy

    Hi,
    I would like to ask about different currency when we tried to create Bank Account Transfer.
    Can we transfer IDR currency to USD ?
    Transfer date: 03 Oct 2012
    Currency: USD
    Transfer Amount: 1500
    Bank Source: IDR
    Bank Destination: USD
    it supposed to be okay but when tried to validate, there was error:
    "Please select a Source Bank Account currency that matches its ledger currency."
    Kindly need help
    Thanks
    Findy

  • Currency for GL account  related to foreign bank

    Hi
    I have a GL account which is "Bank account for foreign branch". Our company code currency is USD. The Bank account is in Euro.Can the currency for Bank account GL be set up in USD (the co code currency) ? I think it should be.But there is a similar account ( bank in germany ) has set with GL as Euro. I am not sure which is best practices , setting up bank account in Co Code currency or docuemnt currency ? Kindly guide me, it is very urgent.
    Thanks in advance
    Satya

    Hi
    GL accounts corresponding to Bank Accounts are generally maintained in the respective currency. In this case it is advisable to maintain it in EUR and not USD.
    This helps as below:
    1. GL balances are always visible in EUR and can be verified against bank statements.
    2. Period end FC gain/loss can be valuated and posted.
    SAP documentation also suggests that Bank accounts are maintained in respective currencies.
    Thanks
    Satya

  • Foreign currency Payment using foreign currency bank account

    Hi,
    We have the following requirement:
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    Bank Account :USD
    Need to make payments in CAD
    Since the bank account is not in functional currency we are unable to make that multi currency payment enabled. Users do not want to create a functional currency bank account.
    Now how to overcome this situation ?

    Hi, I am referring to paying foreign currency (ap payments) using non functional currency bank accounts. Are you referring to payment or receipts in foreign currency ?
    Please refer the in 11i ap guide
    1. pg 2-104
    "Dening Multiple Currency Bank Accounts
    A multiple currency bank account is an account that accepts payments in more than one currency.
    If you define a multiple currency bank account for payments, the currency of the bank account must be the same as your functional currency."
    2. Payment Formats pg 2-140
    " When you define a bank account, you can only allow payment of multiple currency invoices if the bank account currency is your functional currency."
    These 2 states that you can pay suppliers in foreign currency only if the bank acct currency through which you are paying is same as functional currency. But my bank account currency is different from functional currency.
    Since you say you are doing , I am quite interested to find out more.Can you please let me know your currency setups on the bank and payment format.
    Thanks

  • Onlybalances on local currency - incorrect foreign currency valuation

    Dear all,
    I have the following problem:
    My customer created some manual accounts and did tick the box for only balances in local currency. Now my customer wanted to do foreign currency valuation on these accounts. I told the customer to make balance zero on account, un-tick "local currency" on GL account master record. And then reverse the document wihich makes the balance zero. This worked fine. But now when the customer wants to do foreign currency valuation (on balances) only new postings after the GL account master data change will be taken into account for balance.
    It must be possible to change this? So that balance in document currency and local currency is correct when comparing to for example line items in fbl3n.
    Very gladful for any help!
    BR Åsa

    Thank you for the information. Just want to make this clear. I did the following. Acoount number is 166000.
    1. Amount in document currency: balance 5000 PLN (debet)
    Amount in local currency: 12000 SEK (debet)
    2. Post a GL account document:
    Credit 12 000 SEK account 166000
    Debet 12000 SEK account 168000 (or any other account).
    3. Un-tick only balances in local currency on GL account master data
    4. Reverse the GL document created in step 2 above.
    5. Test run foreign currency valuation on account 166000 does not show any postings (no balance in other currency).
    Can you please help me with what to do exactly? (GL postings)
    Thank you very much!
    BR

  • Currency Valuation G/L Account Balance Sheet Posting F.05

    Hi all,
    Is there a way to post the Currency Valuation F.05 for G/L account balance sheet posting to another account than itself.
    I cannot find any configuration on that, and a trace look to show that it goes back to SKA1,
    SKAT & SKB1.
    Open item have configuration in OBA1 and we can fix the posting where we want.
    But the currency valuation for the account balance always happen to the same account.
    Thank you,
    Carole

    Bal.sheet adj.1 in OBA1 is for that only. The GL account is for Identifying that this is FC account in case of Valuation Loss/ Gain.
    Incase of realized loss or gain, it is the same GL account that has to hit in the local currency.

  • 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

  • Clearing foreign currency payments against local currency bank account

    Hi all
    We have foreign currency invoices (eg in USD, EUR) and would like to pay these from a AUD domestic bank account. Is this common practice or does the client need to enter such invoices in their external bank specific terminal to process such payments if they have a domestic currency bank account.
    How does the Electronic bank Statement (which is in AUD) clear these foreign currency invoices (EFT clearing account or suspense account). I presume we would have to post to a suspense account clearing and then do a manual post with clearing after loading the bank statement.  However, the amounts do not balance to zero as i cannot clear items off as they are in different document currencies as noted below.
    INVOICE
    cr vendor  100USD   200AUD - cleared by payment program
    dr expense 100USD   200AUD
    PAYMENT PROGRAM
    cr Sus clg 100USD   210AUD
    dr vendor  100USD   200AUD - Cleared by payment program
    dr FX g/l    0USD    10AUD
    ELECT. BANK STATEMENT
    dr Sus clg 205AUD
    cr Cash    205AUD
    What would be the standard approach for such postings from an SAP bank accounting functionality point of view.
    Is there a better way of design the above payment process.

    Hi,
    this is a hard task.
    You have to play with the GL account master data. See documentation for field "Only balances in local crcy". It is quite good described for the clearing in foreign currencies.
    Also I have some doubts that there were settings in FI for foreign currencies clearing, but I have never customize it.
    Hope I helped you (if so... points reward would be highly appreciated )
    Regards,
    Alex

  • 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!

  • AUtomatic Payment Program - Unable to make payment to Foreign Vendor having bank account in home country and home currency

    Hi
    We have company code in India. Payment method C is configured. Now we have a requirement that we have to make a payment to a vendor in Bangladesh who is having Bank account in India in INR. Already I have ticked the foreign payments as shown below
    Now when we have to make a payment to bangladeshi Vendor , I am unable to generate any payment.
    Please Find the error detail as shown below:
    >            Payment method selection additional log
    > Payment method selection for items due now to the amount of INR          100,00-
    > Payment method "C" is being checked
    > Street or P.O. box entry is missing
    > No permitted payment method exists
    Information re. vendor 9021121 / paying company code 1021 ...
    ... payment not possible because of reported error
    End of log
    Step 002 started (program SAPFPAYM_SCHEDULE, variant &0000000001176,
    Step 003 started (program RFFOEDI1, variant &0000000000398,
    Program RFFOEDI1: No records selected
    Step 004 started (program RFFOUS_C, variant &0000000000784,
    Program RFFOUS_C: No records selected
    Job finished
    Anybody having any idea. Please Help

    Hi Raj,
    Please check the following things once.
    1. Check the vendor pyt method in XK03. Vendor should not be blocked at any level.
    2. Also check - FBZP - Pyt methods under country level - what are the mandatory parameters ? - Street, P.O. BOX or box pst code or bank acc.no, swift code, IBAN No.- check those parameters are maintained or not? If no, pls maintain the same.
    3. Doc currency - You have to maintain the INR currency in invoice. Also maintain the entry for INR currency in FBZP - Bank determination- ranking order & bank accounts. Else not psbl to make payment in foreign currency.
    I hope it clears else revert us with your issue.
    Thanks & Regards,
    Lakshmi S

  • 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

  • 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

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