Foreign Currency Valuation customers, (outstanding invoices) F.05

After using F.05 for foreign currency valuation I am surprised by example outstanding CHF invoices keep the same EURO figures.
When I look to the report F.05 gives after using the session it shows a calculation for each CHF invoices to the new EURO figures,
but after processing the batch with SM35 there is no change of the EURO figures by these invoices.
After a while I noticed this kind of currency differences are booked on another GL account.
So there is one GL account for outstanding debtors and another one what gets the currency rate differences after using F.05.
Never the less is it not very strange when I am using line items reports to show the invoices of outstanding debtors that on invoice level the EURO figures still have the same figures?
By example 42000 CHF are equal 25000 EUR and after using F.05 the report says this 42.000 CHF are equal to 28000 EUR.
I should expect the EUR figures of 28000 would I see back in the oustainding invoice reporting, but that's still showing the old amount of 25000.
I know SAP shows the difference on another GL account but is it not strange this kind of currency differences are not in the outstanding invoices figures. I should expect by the invoices the EUR figures after currency valuation.
Is this how SAP works? Or did we something wrong when we set up our own SAP version?:-)

Hi,
This is how the accounting is done. Basically at the year end the foreign exchange gain or loss is accounted for in a separate account of respective master data like customer , vendor & profit and loss is effected. generally FAGL_FC_VAL is used where there is ecc 6. And the reversal date is set for this effect. At the start of the year this entry is revesed. And the actual gain or loss is accounted for at the time of liabilty/ income crystalisation i.e. payment\ receipt of foreign exchange.
Regards
Milind Sonalkar

Similar Messages

SD invoice can't be reversed due to foreign currency valuation

Hi,
I have an invoice which relates to an Sales order,it was posted in several months again(cross monthly closing). Now I want to reverse this invoice,but the system can't cancel the relevant FI document due to we have done the foreign currency evaluation at last month end.
The error message as:
===========================================================================
Reversal of document 0220v1 1100004518v2 2009v3 not possible in FI
Message no. F5A005
Diagnosis
Item &v4 in accounting document 0220 1100004518 2009
was valuated with an open item foreign currency valuation.
System Response
Document cannot be reversed.
===========================================================================
How can I accomplish this job?
Any input is appreciated.
Thanks,
Don

Hi Mike,
Reset the Foreign currency valuation run? I am not sure about your suggestion. Does it means that I just key in the "reversal posting date" and "reverse post.peried" and don't key in "Document date","Posting date" and "Posting period",it is right? And then how to check the document being reset or not? (Just check if there have the document or not,when test run.)
Or I need to select a reset valuation method?
Thanks,
Don

Why foreign currency valuation is required ?

Hi.
I just want to clear my doubt. If we deal with foreign vendors or customers like vendor invoice is done through USD or EUR or GBP but payment is not made till now or customer invoices are done but payment is not received from them in month of August. In that case if we run foreign currency valuation of open vendor invoices and open customer invoices on 31st August it will generate accounting entry and next day i.e, 1st September accounting entry will be reversed. So my question is we have not received from customer and we have not paid to vendor, invoices are still open from customer and vendor side. So if we run foreign currency valuation what will be its actual effect in the business and if we not run foreign currency valuation what are the problems may arrises because later if we pay to vendor through foreign currency then actual loss / gain effect will arrise in our business scenario.
Kindly give me reply.

hi
As part of the period end process, and in anticipation of creating a period-end financial statement, all accounts held in foreign currency and all foreign currency open items must be re-valued at the period end rate. There are two tools within the SAP ERP Packaged Solution for this purpose:
Foreign Currency Revaluation u2013 Balance Sheet Accounts: The program selects every balance sheet account, typically cash accounts, that is held in a foreign currency and re-values the total balance at the currently valid rate. Any (sterling) exchange rate difference is posted to a realised gains/losses account.
Foreign Currency Revaluation u2013 Open Item Accounts: Open item accounts managed in GBP, such as debtors and creditors, may contain foreign currency transactions. The program will individually revalue each open item to determine an overall unrealised foreign exchange gain or loss position. The realised exchange rate gain/loss is posted when the transaction is cleared.
It is a statutory requirement to meet hte FAS52 and GAAP requirements
thanks
Srilaskhmi

Regrouping , Foreign currency valuation

Hi All,
Can anyone explain the use of regrouping(F101) and foreign currency valuation (F.05) ?

Hi Manisha,
Please find below mentioned the functionality of the reports.
F.101-This report groups the receivables and payables according to a required
list, for example, the "EU Guideline No. 4", and carries out transfer
postings.
Additional adjustment postings are necessary in the following cases:
o   Customers with credit balances and vendors with debit balances
o   Changed reconciliation accounts or partner (affiliated company)
o   Display of investments
All accounts that are managed on an open item basis are taken into
account.
Sorting of items:The decision as to whether an account is sorted according to receivables or payables depends on the financial statement value of an account. This is the balance of the account per reconciliation account and remaining
life. If several accounts are connected by the same trading partner, the joint financial statement value of the account group created determines
the type of sorting. If the balance is positive, the account is sorted
according to receivables, if the balance is negative, the account is
sorted according to payables. You define the sort methods required in
Customizing.Alternatively, several accounts can be summarized in a group whose joint balance is used for sorting. The definition for the corporate group is
used as group definition for customers and vendors. For G/L accounts,
there is a separate field in the G/L account master record.
For credit memos with an invoice reference, the due dates are taken from
the invoice.Vendors with debit balances and customers with credit balances are
determined separately for each point in the sorted list, since only
items with virtually the same remaining life may be balanced with each
other.
The documents are totaled under the current reconciliation account of
the customer or vendor master record. If the reconciliation account is
changed, the amounts are transferred from the old reconciliation account to the new reconciliation account.
Investments: In some countries (for example, France), investments must be displayed separately. You use parameters to select this additional display. The
investments are then displayed as a total per reconciliation account and
transferred.
Postings
For every transfer posting created, a reverse posting is also entered in
the session. For reconciliation accounts in the customer or vendor area,
postings are also made to an adjustment account.
If you use a target company code, all items are summarized under the
target company code and then processed. The company codes selected must
be managed in the same currency however (for example, local currency,
group currency).
If you use an alternative valuation area, account determination for the
transfer posting is carried out from the valuation area selected.
==========================================================
F.05- This program carries out the foreign currency valuation.
The following items/accounts are valuated:
o   Open items
o   Foreign currency balance sheet accounts. This means G/L accounts
    that are managed in a foreign currency.
You have the following options for the foreign currency valuation:
o   You can carry out the valuation in local currency or a parallel   local currency (for example, group currency).
You can use different valuation methods (for example, HGB or US
GAAP).
e result of the valuations can be stored per valuated document and
sted to adjustment accounts and P&L accounts.
ation process
lection
Open items:
The customer, vendor, and G/L account open items on the key date a
read and balanced by account or group and currency.
G/L account balances:
Reconciliation accounts and accounts managed on an open item basis
are not valuated. P&L accounts are only valuated as required: See
also: "FASB 52 Translation".
Grouping
The documents or balances are balanced by currency and account (or
group/valuation group). The exchange rate type for the valuation is
determined from this balance.
Valuation
o   Open items:
    The items that are untranslated at the key date are summarized per
    invoice reference or account/group.
    If the result does not correspond to the method selected, for
    example, if a profit arises using the lowest value principle, no
    valuation difference is output.
o   G/L account balances:
    The balance is translated per currency and account/group on the key
    date. The valuation difference determined is compared with the
    valuation method specified (for example, lowest value principle).
Hope this helps. please assign points.
Rgds
Manish

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!

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?

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

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

Foreign currency valuation process.

Hi Gurus,
I need some help on foreign currency valuation. Can any one explain the in detail the process of month end open item valuation. I need to valuate an open item account which is in JPY and the company code currency is HKD and group currency is USD. I have to perform both remeasurement(transaction currency to functional) and translation( functional to Group). I need step by step guidance.
Thanks in advance,
Prashanth.

hi,
for valuating foregin currency valuaqtion, you need to prepare
1. automatic postings for foregin currecny valauation(FCV) by to code. oba1- double click on exchange rate key and assign the relevant chart of accounts and G/L accounts.
2. after that you have to create valuation methods in OB59
assume you have posted invoices with foregin currency,
enter the present currency rates in exchange rates, then run the FCV in f.05, after executing select the posting button, it will process the posting.
thing is you should decide whether it is year end or monthend.
let me know further clarifications,
regards,

Create items by vendor and customer on Foreign Currency Valuation

When we execute Foreign Currency Valuation, we would like to create items in a document by vendor and customer.
Can we handle it a 'Corp.group-vendors' flag(Evaluate Accounts According to Group Definition) ?
Can you help with this issue please?
Thanks,
Sato.Ishikawa

HI,
With the report SAPF100, you will be able to valuate foreign currencies
from customer and vendor accounts.
It is not possible to post a foreign currency valuation directly to a
vendor or customer account. This is only possible for g/l accounts.
You can refer to the following workarounds:
From the technical point of view you can use FB01 to post such a posting
You have to enter a exchange rate manually in the first screen. In this
case this exchange rate is used instead of the exhange rate of table
TCURR (transaction OB08).
You have to choose a exchange rate which transfer the amount in local
currency to 0,00 in foreign currency.Another possibility is to use
RFBIBL00 in transfer type direct input for FB01.An amount of 0 in
foreign currency should work.
The system is designed not to post documents with 0 amount in foreign
currency to vendors/customers.
Reg
Madhu M

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

Foreign currency valuation configuration

HI, experts
can youone send me the detail configuration of foreign currency valuation , my id is - goutam.jena at genus.in
thnxs
goutam

Hi,
Initially you have to define the valuation mwethod in "OB59"
then you will have to assign gl accounts in "OBA1"
now you post vendor invoice with different date and exchange rate(eg. USD 42) and take different date with exchange rate (USD 40) for Vendor payment.
Now you can see the difference in exchange rate which is to be valuated.
Please let me know if you have any concerns,
Hope understood and assign points if you get through.
Thanks,
Vasu..

Please help - Foreign currency valuation

Hi,
I have a query about foreign currency valuation
As per my knowledge, when we run F.05 for foreign currency valuation, it valuates the open items in foriegn currencyand reverses them the next day.
so the original invoice will not have any valuation difference
( more data > valuation diff) will be zero.
NOW, if the invoice has valuation diff what does it mean?
Please help me on this....
Regards,
Jay

Below information may be useful to you-
You have the following options for valuating open items in foreign currency:
Saving the exchange rate difference per document
You can define that in addition to being posted, the exchange rate differences are saved per document. This information is then available for subsequent evaluations, for example, Transferring and Sorting Receivables and Payables
To do this, select the indicator Valuation for FS preparations on the Postings tab.
The exchange rate differences saved in the document are taken into account for payment clearing:
Unrealized exchange rate differences
When you valuate open items in foreign currency, the exchange rate difference determined is posted as an unrealized exchange rate difference.
Realized exchange rate differences
For an incoming payment, that is, when you are clearing the open items, the current exchange rate is determined. The unrealized exchange rate difference determined from the line item is taken into account.
If the first valuation results in an exchange rate difference of 30 DEM, and the current valuation results in an exchange rate difference of 10 DEM, an exchange rate difference of 20 DEM is posted and 10 DEM is saved in the line item as the final valuation difference.
Reversing exchange rate difference postings
You can define that the exchange rate differences posted are automatically reversed one day after the valuation run by an inverse posting.
You therefore have the option of determining exchange rate differences at any point in time without this valuation being taken into account for the creation of financial statements or for payment clearing.
To do this, select the indicator Reverse postings on the Postings tab.

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

Error while running the foreign currency valuation

hello frnds,
i got the following error while running the foreign currency valuation.
No accounting principle assigned to valuation area
Message No.fr894
Diagnosis
In customizing the valuation area is not assigned to an accounting principle. You can use the accounting principle to define the general ledgers in which posting takes place.
System Response
Error msg
Procedure
Assign the valuation area to an accounting principle.
Above is the error message, but I created valuation area and assigned it to an accounting principle.
Guide me with some inputs.
Regards,
Siva

Hi,
Please check the following path
IMG > Financial Accounting (New) > Financial Accounting Global Settings (New) > Ledgers > Parallel Accounting > Assign Accounting Principle to Ledger Groups
Whether you have defined the Accounting Principles to Ledger Group?
Regards,
jigar

Foreign Currency Valuation customers, (outstanding invoices) F.05

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