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,

Similar Messages

  • 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.
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    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.
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    Murlidhar Khatri

  • Foreign Currency Valuation not posted to GL account

    Hi,
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    Best Regards,
    Anindita

    Hi,
    After executing FAGL_FC_VAL, do you execute Batch Input Session in SM35. If no then
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    Chintan Joshi.

  • Why foreign currency valuation is required ?

    Hi.
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    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:
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    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.
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    Srilaskhmi

  • F.05 Foreign Currency Valuation

    Hi,
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    To highlight to users the new features found in the enhanced foreign currency revaluation program:
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    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.
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         Test run should be repeated until there are no errors or   (red light items) found in the message spool.
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         If error, correct and run a test run again.
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  • Regrouping , Foreign currency valuation

    Hi All,
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    Hi Manisha,
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    ==========================================================
    F.05- This program carries out the foreign currency valuation.
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    ation process
    lection
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  • 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,
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    After a while I noticed this kind of currency differences are booked on another GL account.
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    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?
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    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.
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    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

  • 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

  • Error when using automatic clearing (F.13)with foreign currency valuation.

    Hello all
    below is our problem, please suggest us a solution
    We are experiencing a problem when running the automatic clearing in SAP. Somehow, the system seems to clear (with no reason) open items created with the revaluation of foreign currency.
    Let's say that we run the valuation of open items in foreign currency for December 31, and we run the program to post the reverse entry as of  January 1 of the next year. As a result of this valuation, the system calculates a loss of 10 euros. Therefore, it posts a document with a debit entry of 10 into the Loss account, and a credit of 10 in to account where the valuation was carried out. This document has a posting date of December 31. The batch program also creates the reversing entry, this time a credit entry into the Loss account, and a debit into the original account.
    If now, we try to run the automatic clearing (F,13) on December 31 for those accounts, the system will create (automatically) a document on December 31, similar to the reversing entry that the valuation created, clearing at the same time, the first document that the valuation originally created.
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    To my knowledge you get do two things:
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    Regards,
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  • Error while running foreign currency valuation program FAGL_FC_VAL

    Hi
    this is regarding foreign currency valuation in ECC6.0 with EHP4
    i have done the revevent setting in spro and while execturing TC FAGL_FC_VAL agetting following error:-
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    Message no. FR257
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    regards
    DD

    Hello Devi,
    This account managing with open item? Can you check G/L account master data?
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    Regards,
    Burak

  • 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.
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    ===========================================================================
    Reversal of document 0220v1 1100004518v2 2009v3 not possible in FI
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    Diagnosis
    Item &v4 in accounting document 0220  1100004518 2009
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    ===========================================================================
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    Thanks,
    Don

    Hi Mike,
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  • Foreign currency valuation differences for reconciliation accounts

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  • Foreign Currency Valuation Values Conversion

    Hello SAP Experts!
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    Regards!
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