Foregin Exchange valuation

Hi All,
Unrealised DIE LOSS AND DIE GAINS is not flowing through non-leading ledger. Please advice how to configure the account principles to the non-leading ledger, so that the valuation can flow to non-leading ledger also.
Regards
Murali

Hello
Please check the following link for an overview on valuation and config principles
http://www.sap-press.de/download/dateien/1344/sappress_new_general_ledger.pdf
Reg
Suresh

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Change the priority of job SAPF100 Foreing exchange valuation

Hi
How can i change the priority of job for the programme SAPF100 (foreign exchange valuation)
SAP version: 4.6C
Pls suggest me
Thanks
Suresh

Batch job priority (Job Class) can be set when creating a batch job using transaction SM36 or changed in SM37 before a job is active. Job class can be set from C to A, where C is normal (low) and B (medium) and A (high) are higher priority. Batch processes on the server are allocated based on job class.

Hard currency and foreign exchange valuation

Dear experts,
I have defined INR as my company code currency (10) and USD as hard currency (40)
when i post any transaction it is reflected in both currencies
I post an invoice of Rs 400 when the rate is Rs 40: USD1
Thus in hard currency the USD amount is reflected as 10 USD
Now i pay the amount when rate is Rs 50:1 USD
eg rate has changed in the mean time
then when i pass the payment entry thru f-53 and process open item, exchange rate difference is generated to the extent of USD 2
The system is giving error that this account is not configured in exchange rate table eg (key KDB)
Does this mean that when i have a second currency, i necessarly have to define all accounts where such rate differences occur in the KDB or is there a way out
hope you can give detailed answer.
Regards,
Rishikesh

Hi,
This is standard SAP, that system valuates only the docuemnts in foreign currency using the document currency.
When the document is posted in local currency, that is not needed to be revaluated.
Regards,
SDNer

Exchange Valuation difference to be disbtributed on profit center

Dear All,
I want to distribute the exchange rate valuation difference to original profit center, what steps should be follow? How to distribute the same?
Regards,
Rajeev

Hi,
Please note that the Realized Gain/Loss on Forex GL Code is a Profit and Loss Account and a Cost Element. Because of which, it picks the Profit Center from OKB9.
As far as I know, we cannot avoid Profit Center Document in this scenario.
Regards,
Kiron Kumar T.

Foreign exchange valuation

Dear All,
We had done a valuation run and then reversed the valuation run documents thru mass reversal mode (mannually). Because there was some error in the initial valuation. By this time, the intial valuation got reversed by the system also on first of next month. Now we have to reverse the system reversal which got passed on first of next month. Can someone please tell us the method to do that. We are not able to reverse the reversal passed by the system on first of next month by calling the documents, bcoz it gives an error message saying this document cannot be reversed because it is already reversed.
Please help me to come out of the problem. If you need any additional info, please let me know.
Regards
Suresh

Hi
Reversal of reversal is not possible.
Here, you need to reverse the documents reversed manually (mass reversal) and do the valuation again.
Postings made to loss/gain account are reversed automatically, so effects is nil.
Now, the extra posting made is the mass reversal, pass the reverse JV for the same
and do the valuation again.
VVR

Foregin Currency Valuation

Hi,
Can any of you let me know what is the difference between the following two transactions?
F.05 and FBB1.
Thanks,

Hi,
In our place also we have not implemented New gl,When i try to open this tcodeF.05 it is showing NEW GL should be implemented.
When new gl is implemented then this way it works
Basically the purpose of the technical transaction code FBB1/F-05 is the posting of "adjustment" documents in specific (local) currency types within the processing of the period closing programs. This means that the transaction code should not be used for 'usual' postings manually/online. In context of the valuation processing it is required to create valuation postings referring to the transaction currency from the selected original foreign currency open items and balances. Accordingly transaction FBB1 is able to create documents also with an expiring currency key if necessary because the transaction currency of the valuation postings is referring to the transaction key of the valuated item or balance.
Addition, the functionality of the expiring currency is designed to help the users to avoid wrong postings in their normal business. This includes the normal posting transactions. FBB1/F-05 are not normal posting transactions.
regadrs,
Santosh kumar
Edited by: santosh kumar on Dec 17, 2009 3:44 PM

Valuation of inventories when forex exchange diff exist between GR & IR

Hi,
We are implementing ECC 6 to one of our client. Client requires one specific requirement.
When GR is posted with the foreign exchange valuation the system will value the inventory with available rate from the foreign exchange table.
When the invoice is made there is difference in foreign exchange rate between GR and IR.System is taking the foreign exchange difference to inventory account since the stock quantity is more than the invoice quantity.
As per the understanding of SAP on these foreign exchange difference to inventory, I understood that when there is stock in the inventory and if it more than the invoice quantity then the system will post the exchange difference to the inventory account. And if the stock quantity is less than the invoice quantity then the forex difference will be posted to either price difference account or forex exchange difference account as per customization.
But our client wanted to post the difference on exchange whether inventory exist or not to the exchange difference account.
Please suggest us a solution.

Hi
If you fix the exchange rate indicator in purchase order, and doing GR (different exchange rate has been maintianed in OB08), then you inventory will be valuated at PO exchange rate. Difference will go to gain/loss on exchange rate (foreign currency exchange rate account). Same will be negated by price difference account.
You have one more setting for IV exchange rate in MM - LIV - incoming invoice - how exchange rate difference are treated. Here you maintain the settings for GR and IR exchange rate differences.
Checking the exchange rate fix in PO has nothing to do with GR and IR rate differences as through out the process the rate is constant.
Thanks

How to reverse proposal posting in F.05 - For exchng Valuation

Hi,
When we do foriegn exchange valuation through F.05 it creates a proposal posting and a session SAPF100, only when we run the batch input session the actual postings take place. But before processing the Batch session if i try to execute again F.05, it doesnot pick up the previous proposal postings. Our client has used a Recon A/c as a balance sheet adjustment account and now when they are doing the Valuation of open items using f.05 all the batchjobs are going in error, thats why we have changed the Balance sheet adjustment a/c , but the system it is not picking up the previous posting proposals, we guess that they are updating in some internal table, please let me know how to reverse these proposal postings. I have tried by deleting the batch input sessions, but its of no use.
Thanking you in advance
Sai

Hi,
it seems that you have selected the "balance sheet valuation" flag (right below "Create postings) when executed F.05 for the first time. Doing so, not only a batch input session will be created, but the original open items are updated. You can check this when displaying any of those items simply in FB03, go into that open item, and then choose the menu path Environment --> Valuation --> Display values. If you can see some figures there, then I my assumption is correct.
Now, when you try to run F.05 again (no changes to the data in the meantime), then the same open items don't get revaluated again. This has honestly nothing to do with the fact whether you have processed the batch input session or not. The reason you can se yourself in the column called "Old difference" in the list of the 2nd F.05 run. You will notice that this old difference (shown in FB03) is the same as the currently calulated difference, so for this time, there is nothing more to post. That's why you wont see new items, using your changed G/L accounts for the balance sheet adjustment.
Here is how to resolve this:
Define a new valuation method in the IMG. You do not have to bother with the detailed settings, important is only that you select the radio button called "Reset" for this new method.
Then go to F.05 and choose the new method. You can restrict the selection to the open items in question only to make it run faster. (If you have a list of those items). This will erase the valuation figures from the items. You have no any other (standard) option to achieve this, no reversal, document change, etc. will help you, only this specific valuation method.
Hope that helps, points welcome
Csaba

Purchase Price Variance - Exchange

Hi,
When we do IR for a PO, there is an entry in the accounting document for the Purchase Price Variance -Exchange. How is this entry computed or during what cases is this entry added in the accounting doc ? The IR done is with reference to a PO in a foreign currency.
Thanks.

Hi
Due to foregin exchange rate at the time of MIGO and MIRO their is entry in Purchase Price Variance -Exchange

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

Open vendor Items -Valuation Difference

Hi,
what is the equivalent transaction in SAP 6.0 of transaction Y_MG1_07000102 (Open vendor Items -Valuation Difference) in SAP 4.7?
Regards,
makrand

If you are talking about foreign exchange valuation (open item) its: FAGL_FC_VAL
For others:
F107 - Further Valuations
F107_PROV_RP - Long-Term Receivables/Payables

Freign curency valuation

To Comply the accounting standards the foreign exchange valuation is caried out on year end date.
For ExampleMy company code currency is INR, and a Export sale was made on 1st nov 2007 in terms of USD say 1000 USD,wherin the conversion rate was Say 39.50 INR. In Sundry debtors Books of accounts says sundry debtors balance with 1000 USD and Equivalent INR will be 39500.
on the Year end date say 31st December the sundry debtors is still exists for 1000 USD and say conversion rate will be Rs40.00.
Hence in books of accounts my Sundry debtors should be 40000/- ( Since my reporting date is 31.12.2007). Hence I transfer Rs 500/- to Foreign Exchange revaluation Gain/Loss account as Gain and Increase my Debtors to 40000/- in INR.
there will not be any change USD figures. And on 1st of January I reverse the entry.
the document is reversal means that 500 rs will also be reversal on 1st january
plz clear
regards
supriya thodimela

Hi
Are you asking whether your statements below are correct?
If so, then it is perfectly right. You will increase the receivables by Rs.500 as on 31st Dec 07 based on foreign currency. However please note that you have used Valuation Method which uses the valuation procedure "Always valuate". Normally in India, we do not recognize unrealised exchange gains. We go by lowest value principle wherein we recognize unrealised exchange losses only (not gains). Please check the valuation procedure
S Jayaram

Foreign Currency Valuation postings to period 13?

Can FAGL_FC_VAL be posted in the special periods 13 - 16?

Hi,
You can post it in special periods........... but generally Foreign Exchange valuations is a month end process...... and you only have a maximum of 4 special periods in SAP......... so ideally it is suggested to post the Forex valuations every period end.
Generally Forex valuations is done basically for arriving to a true value in the balance sheet...... which would ideally gets reversed in the next month........ and if the payment is not made in the next month then they re-valuate the same.
Kind Regards

FX Valuation in TPM1 with Gross Amortization Procedure (2 FI accounts)

Dear Experts,
I have one question regarding the foreign exchange valuation in tpm1:
The Position Management Procedure include the Gross Amortization Procedure, where Premium/Discount is not included in Book Value. Therefore the premium/discount is posted as accrued/deferred account.
At the end I will have one asset account for the Nominal Value and a second asset account for the premium/discount.
My problem: I cannot split the FX Valuation in the 2 accounts. Do you have any idea?
Thank you in advance!
Andreas

Hi,
Was reading through this question and I understand that the question is answered, but just wanted to check on certain points.
In PMP, do we need to have two procedures for the same step (forex valuation) and will it actually work? I will check this.
Also if I understand the requirement correctly, you are managing premium/discounts through deferred revenue accounts. Hence when you do a forex valuation, you want the valuation amount to be split separately for position account and deferred revenue account? But in general is it the practice to separately valuate it.
When you do forex valuation, it will take into account the overall book value which is the purchase value plus the amortized amount. Valuation is performed for the new book value.
For the balance in local currency in the deferred revenue account, when you do the final repayment, a translation flow is generated based on the update type specified from the position outflows tab. This procedure can be managed in your current release itself.
Regards,
Ravi

Exchange Difference posting through MM

Dear Experts,
We Procure Assets through Material Managment . we have created interim asset class in FI and attach Asset number in PO while creating PO.
Now scenario is that we procured/imported Asset through PO and created PO in Foregin Curreny on 01-06-2011. we did GRN of the Asset on 16-08-2011 and MIRO on 24/08/2011. FOregin Exchange on all these dates were as follow
01-06-2011 106 PKR
16-08-2011 116 PKR
24-08-2011 119 PKR
now due to difference in exchange rate at the time of MIGO and MIRO system automatically charge Exchange rate difference to Asset at the time of MIRO. While our financial experts argue that according to IAS21 exchange rate difference should be expensed out
we have assigned exchange rate difference(expense) already in OBYC
Requirement
isi t SAP standard functionality to charge exchange diiference to Asset at the time of MIRO.
and can we expense out exchange rate difference at the time of MIRO and where configurational changes should be made
please also note that as payment invoice is cleared exchange rate difference is booked in exchange difference a/c which is accurate
BR
sajida

Hello Sajida, Did you resolve this?
There are a few things that you could do:
1. Tweak the way that Exchange rates occur between MIGO and MIRO, that you can do it at SPRO > Materials Management > Logistics Invoice Verification > Incoming Invoice > Configure How Exchange Rate Differences Are Treated
In there you have the following options:
If you do not select a value: Exchange rate differences between goods receipt and invoice receipt
The system calculates the exchange rate differences from the difference between the exchange rate at the time of the goods receipt and the exchange rate at the time of the invoice receipt.
Choose the value X: Exchange rate differences between invoice receipt and assumed exchange rate
The system calculates the exchange rate differences from the difference between the exchange rate at the time of the invoice receipt and an assumed exchange rate. The assumed exchange rate can, for example, be valid for a whole year or a part of a year.
Choose the value N: No exchange rate differences, only price differences
No exchange rate differences will be calculated. Instead, differences from exchange rate variations will be considered as price differences and posted to a price difference account.
Since you are working with assets, all price differences move to the asset, therefore it may not help you, but nonetheless you should try it out.
2. Modify the Account Assignment Category "A" (Asset) so that the Goods receipt becomes nonvaluated, with this, there won't be any change between MIGO and MIRO since there won't be any financial document on Goods Receipt. This solution is implemented is most of our clients.
3. Creating or modifying the purchase order (before Goods Receipt) you can check the Indicator Exch.Rate Fixed in the Delivery/invoice tab at PO. with this indicator on, all documents posted to this purchase order will have the exchange rate shown in the same tab at the Purchase Order (ME22N), you can change this exchange rate also with the number that you need for MIGO and MIRO, no price differences will occur between MIGO and MIRO, but price differences for payment will occur has a standard.
Best regards,
Arturo Flórez
MQA Colombia

Foregin Exchange valuation

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