Currency valuation corrections(urgent).

Dear all,
Our client facing an issue of currency valuation.
please consieder the scenario...
previesely they maintained currency rate in table for doller
1 doller = 42.00
but actuall value for Doller while making invoice is RS 39.00
and they while making PO GRN and LIV.
Now issue comes when finance dept is going to make payment to vendor and they raised a query is that when invoice was raised at that time only curency rate is entered wrongly hence we wont get exact figure for Exchange loss/gain and they were asking to make correction in invoice rate.
so plese suggest how to rectify .
or any other work around..
Thanks in Advance
regards
Syed*

Hi Syed,
The real impact happens at the time of payment. In your scenario things conflicting. When we create an invoice for the vendor, the vendor would be paid in document currency. while the valuation is done between document, local, group and PC currency and in case of loss and gain the differences flows to the respective accounts.
This no way create a conflicts for payment to vendor we dont buy in one currency and pay in other so that there is loss or gain. But if your intention is o correct the internal valution, the best way is to reverse the invoce on the same date and do the posting, this is possible if the payment has not happned and repost the invoice on the same date after correcting the exchnage rate. 2. you can do a direct FI posting where in gain or loss account can be dr or credited provided they allow direct FI Posting.
Hope this helps in better understanding and resolves your issue.
Regards
Bharat

Similar Messages

F.05 foreign currency valuation issue

Hi experts,
can anyone suggest me
last 1 week onward i have been struggling one issue that is f.05 foreign currency valuation related
when the user post the transaction code f.05 is working fine but again its getting reversal automatically.the reverse check box also UN checked but its still its getting reversal
example:
when the user post the f.05 its successfully posted with document number 00277 but its again reversal 00278 its effected all Gl accounts like from
164302 to 164309 all accounts are automatically reversed .the client have only one company code
can any one suggest me its bit urgent
Thanks & regards
Pradeep

Hello Pradeep,
if I understand correctly this is a Financials-related question - which could be posted to the
http://scn.sap.com/community/erp/financials Space, as Financials-related questions are usually gathered there.
Perhaps you can try to post this question there again.
Best regards,
Laszlo

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

Foreign currency valuation (new) for vendors and costumers open items

Dear friends,
Is there any option that when i run the foreign currency valuation program (fagl_fc_val) for vendors and costumers open line items not to generate the reverse posting? I have read in the sap library that the reverse posting is optional and the when you pay the invoice the system works the difference out between the valuation and the exchange rate of the payment, but i can not find it in customizing.
thanks in advance
marc

I also like to add that it is best to post reversal because normally the revaluation entry is posted on the last date of the month and the reversal entry is posted on the first day of the following month, which means that the following month will have a new entry on the last date independent of the entry made in the prior month.
The idea of posting the valuation entry is to value the customer and vendor open items which were posted (let us say 3 months ago in a foreign currency) with the latest exchange rate as of the end of the month. This way these payables and receivables stand corrected.
Is there any reason why you don't want to post the reversal entry?

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,

Intercompany payment posting after Foreign currency valuation - F.05

Hi Gurus,
I have an issue with intercompany payment posting after foreign currency valuation run.
Build Up:
Let me give you a brief description first. Company u2018Au2019 has open items from Company u2018Bu2019. Basically Company u2018Au2019 charges management fees from Company u2018Bu2019. Both companies have a local currency of u2018EURu2019 and a group currency of u2018USDu2019. The open items posted in company u2018Au2019 have been accumulating for two years now. In January of this year finance decided to run the foreign currency valuation (F.05). The method they used was the reversal method. So at the beginning of the next month the entries from the valuation were reversed. They repeated this in February as well. Note this is the first time the foreign currency valuation was performed in SAP, before it was done manually. After February they never ran the foreign currency valuation run.
Issue:
Now what is happening is, when open items that have been accumulating for over two years and are before the foreign currency valuation run are cleared (payment is made) there is a exchange rate loss/gain. When the open item is cleared there is posting to the G/L account for Balance sheet adjustment and also an exchange rate loss/gain G/L account.
Posting:
Debit u2013 Cash
Credit u2013 Customer (intercompany)
Credit u2013 Balance sheet adjustment account (unrealized loss)
Debit u2013 Profit and loss account (realized loss)
The balance sheet adjustment account that is posted to is from OBA1 u2013 KDF u2013 balance sheet adjustment account in the foreign currency valuation accounts. Currency translation account determination is empty in OBA1.
I understand the system while payment posting is clearing/offset the unrealized loss/gain and posting the realized loss/gain. But how is this possible, when the foreign currency valuation run was done the entries were reversed so there was no unrealized loss/gain posted.
Also another caveat: Isnu2019t foreign currency valuation for open items that are posted in foreign currency and need to be revaluated to local currency. Well that is what is puzzling the open items posted in company u2018Au2019 are posted in local currency u2018EURu2019 so the foreign currency valuation should not affect these open items, correct? And if this is true then when the open items is cleared the unrealized loss/gain should never be cleared since there is none posted the exchange rate difference should only be posted to the realized account in the profit and loss correct? Please help? I can explain further if needed?
Thank you.
Comments and facts:
Companies fiscal year is June u2013 May.
Company u2018Au2019 and u2018Bu2019 have a local currency of u2018EURu2019, group currency is u2018USDu2019
The invoices in Company u2018Au2019 were posted in u2018EURu2019
The foreign currency valuation was only ever run in January and February of 2010.

HI ,
I believe becuase you did not enter any date that's why they did n't reverse automtcially . You need to enter to reverse.
now you can use f.80 mass reversal for all of them
Many Thanks

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

F.05 Foreign Currency Valuation

Hi,
My user had problem when run F.05, Foreign Currency Valuation. It was mentioned that no batch input data for screen SAPMF05A 0700 but it was noted that some transaction had taken place & posted.
As not all the transaction had been posted successfully, I would like to seek your advice how could user post the transaction with error. Some of the transaction was failed due to Posting period 005 2010 is not open.

To highlight to users the new features found in the enhanced foreign currency revaluation program:
     Basic instructions given in initial screen (bottom part of screen) to emphasize correct execution of program for open-item accounts (GL, customer and vendor) and GL balances in foreign currency.
u2022     u2018Bal sheet preparation valuatnu2019 checkbox u2013 This checkbox is applicable only for open-item accounts. When ticked, the revaluation program updates the valuation difference in the open item document. FI postings are generated, but reversal is not possible. When unticked, the revaluation program proceeds to create a batch input session. Postings are generated after executing the session in SM35. Reversal of postings is possible (provided that u2018reverse postingsu2019 checkbox is ticked).
u2022     Revaluation of GL balances in foreign currency will be executed via batch input session because at all times, u2018Bal sheet preparation valuatnu2019 checkbox is not ticked.
     Program has two spool outputs. The spool xxxx attached to the job in SM37 shows the Message log. The spool number xxxx u2013 1 shows the calculation, posting proposal and message log. This second spool can be displayed in transaction SP01.
     To avoid errors and easier monitoring, the foreign currency program will have a minimum of four (4) runs:
1.   Open item revaluation (Test run)
     Check the spool if there is an error.
     If error, correct and run a test run again.
     Test run should be repeated until there are no errors or   (red light items) found in the message spool.
2.   Open item revaluation (Actual run)
     Check the spool if there is an error.
     If error, correct and run a test run again.
3.   G/L balances revaluation (Test run)
4.     G/L balances revaluation (Actual run)
     If actual run is still executed after the error messages, the validation included in the program will ensure that the documents are not updated (value of BSEG_BDIFF will not change). No batch session will be created. Only when errors are corrected will the program be able to post the valuation difference documents.
     If the balance sheet adjustment account is blocked for posting, the program will proceed to create the batch session. Another validation checks if there are existing batch sessions not processed in the previous month.

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

Foreing Currency Valuation - Error in posting

Hi Gurus,
I have executed the Foreign currency valuation but while processing of Batch Input session, system created posting for 22 documents and asking for expense and revaluation GL in 3 documents.
I have assigned the GL Accounts in OBA1 under KDF transaction.
Please help me in solving the issue.
THank YOu

Hi,
To the accont determination kindly ask you please the note: 548946
In transaction OBA1 you have specified an entry for G/L account in
activity type KDF (table T030H) as well as for exchange rate difference
key in KDB (table T030S). While processing the G/L balance valuation for
this account according to the standard logic the program retrieves the
target accounts by checking the settings for
1. KDF first and secondly
In case no relevant KDF entry is found - by checking the entries of
2. KDB.
For further information in this context please review the information in
the FAQ note 548946.
The possible error, that this account could not be posted:
1. the account is not exist in the company code where the valution diff. should be posted
2. the account is locked
3. account setting in the related company code is nto correct
4. KDF settings are missing to the valuated rec. account.
I hope this helps you
BR
Renata

Foreing Currency Valuations

Dear All,
In foreign currency valuation - i have one query.
When we run the foreign currency valuation in SAP system posts one entry - that's for Exchange rate gain or loss, but why there is a reversal entry posted on next day.
What entry is posted on both occasions.
And why we need balance sheet adjustment account for foreign currency valuations.

Hi Namitha
Provisions are always reversed on the beginning of next month.. And at the end of month, you post a fresh provision.. This ensures that any period has the impact of that month only
Your FC Outstanding is 100 USD.. With 1 USD = 50 INR, it comes to 5000 INR as the outstanding amount in INR
At period end, if rate goes to 51 USD, you post a unrealized loss of 100 INR. This loss is for Period 1. This is reversed at start of P2
At Period end of Period 2, assume rate goes to 52 USD.. You post unrealized loss of 200 INR again..
This 200 is reversed at beginning of P3
In short,
Net Loss posted in P1 = 100
Net loss posted in P2 = -100 (reversal of P1) + 200 = 100 again
In P3, if you make the payment @ 53 INR per USD, the realized loss posted would be 300. This would be netted off against reveral of 200 INR posted at beginning of P3
In short, this hellps to evenly spread out the impact
Br. Ajay M
This reversal ensures that net loss reported is correct
br. Ajay M

Currency valuation

Hi,
We have run the foreign currency valuation F.05 for previous month which is working fine and it post the revaluation correctly but if we run the same for current month the revaluation is not posted for some GL Accounts.
Can any one provide some advice what could go wrong things i can look for, i looked up the exchange rate for current month.
Thanks

Hi,
It looks strange. Please check.
1) Check whether the revaluation documents posted last month have got reversed.
2) Check whether there is no exchange differences for the open items for the current month.
3) If your client allows more than 30 days credit period for foreign buyers, there shalll be lots of open items. If not, since you are haivng monthly exchange rate, there shall be no or very mnimal differences.
Trust this helps much!
Cheers!

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

Currency valuation figure different

we run foreign currency valuation for GR/IR account , but amount in FC column only show -340,000 EUR, in GL account line item report GR/IR clearing account has three transaction, two transaction GR/IR accounts are on negative side,(credit) i.e. -340,000 EUR, one transaction, GR/IR account is in positive side 200,000 EUR.(debit)
thus why in foreign currency valuation, system didn't take debit side of GR/IR account posting? thanks

Hi,
I came across the below documents and both says that we have to do this in BPC, but not in BW.
http://www.sdn.sap.com/irj/scn/go/portal/prtroot/docs/library/uuid/d0907bdb-e908-2d10-ca9e-f67166e2147e?QuickLink=index&overridelayout=true
http://www.sdn.sap.com/irj/scn/go/portal/prtroot/docs/library/uuid/6052a57b-8c64-2c10-b3a5-b0378ff21243?QuickLink=index&overridelayout=true
Regards,
Anil Kumar Sharma .P

Currency valuation corrections(urgent).

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