Foreign Exchange Revaluation of GR/IR Accounts

Dear all,
We had implemented mySAP ERP ECC 5. We had maintained the configuration of FBKP for automatic posting for Exchange Rate Differences for Transaction KDF for the GR/IR Account.
But for revaluating the open line items of GR/IR through the T-Code of "FAGL_FC_VAL - Foreign Currency Valuation (New) ", and after giving the required characteristics of company code, Evaluation Key Date and valuation area and then in the tab of open items, we select the option of Valuate GR/IR Accounts.
Also, we had checked the GR/IR account open items as on the Evaluation Key date and we the said G/L contains the open items wherein the document currency is not equal to the local currency. Hence through this T-Code system should revaluate the GR/IR open line items.
But system is not revaluating the same.
Please suggest any other method to revaluate the GR/IR account open line items.
Regards
Dhirav Shah

Hi Dhirav,
You can use any of the following transaction codes to carry out your foreign currency valuation/posting
F-05 Post Foreign Currency Valuation
F.05 Foreign Currency Valuation
F.06 Foreign Currency Valuation:G/L Assts
F04N Vendor Foreign Currency Valuation
F05N Customer Foreign Currency Valuation
F06N Foreign Currency Val. (G/L Accounts)
FBB1 Post Foreign Currency Valn
FNSA Foreign currency valuation
GLBW Foreign Currency Valuation:G/L Assts
ABAW Balance sheet revaluation
I hope the above helps.
Do not forget to award the points please.
Regards,
Jacob

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Foreign currency revaluation for GR/IR account

Hi Friends,
Need your help. My client is facing the below issue.
he is facing issue with transaction F.13 automatic clearing of GRIR account for company code XXXX.
The problem is that the system is reversing the Foreign exchange amount posted in December 2010 and posting it as realized Foreign Exchange, therefore GRIR account is not beeing valuated with USD convertion at the month end closing.
Could you please throw some light on this issue
Thanks N regards,

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

Does Foreign Currency Revaluation Post to an Account which is Open Item Man

Hi,
When running the FC revaluation, it is not posting to an account which is Open Item managed.
I have read somewhere that FC Reval. does not post to accounts which are OI managed or the Recon accounts.
Is this correct? If yes, what are the option for posting to an account which is OI managed?

Hello Deepak,
In FAGL_FC_VAL,the flag of revferse postings is only for "G/L account Balance valuation", not for open line items account(OPLA). and addition. and for OPLA, the system was desiged to post reversal document Auto.
In case in your countries you are not allowed to reverse year-end foreign
currency valuation postings in the following year, pls. using the Delta Logic Foreign Currency Valuation, for the details pls. refer to note:960661.
Hope the above informations are useful to you!
Best Regards,
Gladys xing

Foreign Currency Revaluation for GR/IR Account problem

Hi all,
- SAPF100 programme was run for Dec 08 for GR/IR Account
- But when I run FBL3N for open items to Dec 08 for the GR/IR account and do a reconciliation between the two there seems to be a number of line items that have not been revaluated at all....can anyone help me in explaining this or can some one help me by sending me some good ideas on how I can investigate further and resolve...any help will be greatly appreciated.
Many thanks-
Shem

Check the table T030H to see the current settings for Currency reval for GR/IR account - Check the account # mentioned in the Unrealized Gains/Loss field besides the offsetting account. Based on your definition, it looks like the offsetting account is not the same as the GR/IR account. Check the postings made in the offsetting account, and you can see the entries, created by reval over there.
Nandita

Foreign Exchange Revaluation Programme ( F.05) is calculating duplicate

Hi experts,
We have an issue with F.05 . System Calculating Forex revaluation considering already valuated invoices ( Documents).
Eg: Vendor Invoice 1 - with Exchange Rate : 40 ; Valuation Day Exchange Rate : 45 ,.
First time F.05 , system considered Vendor Invoice 1 and posted correctly with 5 /- Exchange Rate Difference
After that we have entered Vendor Invoice 2 - with Exchage Rate : 42 ; Valuation Day Exchange Rate : 45
Now If you run F.05 , System Considering Vendor Invoice 1 as well as 2 and Posted 8 ( 5 from first Invoice and 3 from second Invoice) .
Customer requirement is system should pickup 2 nd Invoice only , to be posted 3 /- instead 8 /- since 5 /- already posted.
Do we required apply any correction notes , Please suggest .
Regards,
Venkat

Hi
I think logically its wrong. What system is doing is correct.
see when you are calculating frist time system differance for the first bill say its 5/- once you calculate its get reverse immidatete on next date. so there is no impact in your accou t from next day. again in next period when you are calculating the system taking both the bill into consideration and posting say 8 /-. so i feel its a correct way of calculating .
Jain

Reversal post for Foreign exchange revaluation

Hi All,
We are running FAGL_FC_VAL periodically.
Every month posting for Exchange differences is done with document Type u201CSFu201D (in valuation area u2013 we assigned valuation method u2013 for which we declared u201CSFu201D as doc. Type)
And at the same time, it is also posting a reversal entry on the first day of next month ( we are using check box u201CReverse postingu201D in FAGL_FC_VAL and giving the posting date )
But the document type for reversal entry is also taking as u201CSFu201D
In fact in Document type SF u2013 we maintained reversal doc. Type as u201CSRu201D in OBA7
Thanks,
Pavan.

Hi,
Thanks for your message.
But, we are facing problem to a particular company code and not to all.
For other company codes where we are using the same valuation area, it is taking the doucment type as "SR" for reversals.
Thanks,
Pavan.

GR/IR clearing - Foreign Exchange Loss

Hi Sap Gurus,
My Company code currency is u201CCADu201D and my Group Currency is u201CUSDu201D. I have maintained GR/IR clearing account as u201Conly balances in local currencyu201D
I have done GR in 2008 for 100 CAD. And I have reversed this GR in 2010.
When I am doing the automatic clearing of GR/IR: System is posting an entry of Revaluation loss (from KDF trans type) DR To GR/IR clearing a/c (for 0 CAD and in GL view it is 129 USD)
BSEG table has been updated only with zero but in FLAGLFLEXA I could see 129 USD updated in grup currency .
My question is u2013
1.) why the system is looking for KDF currency when I have maintained u201COnly balance in local currencyu201D for GR/IR clearing account u2013 is that because I have maintained this GR/IR clearing account in OBA1 i.e. for foreign exchange revaluation ?
2.) If it so, does the OBA1 setting overrides the u201COnly balance in currencyu201D in GL master ?
3.) As this is just a clearing transaction, Is it acceptable to book a FX loss on this transaction ? and that to it is just a reversal of an erroneous entry.

Hi Pavan,
You have maintained this account in OBA1 for KDF, that is why it is showing forex differences. The difference is in Group currency currency and not in your company code currency.
So, no problem.
Rgds
Murali. N

Question on Foreign Currency Revaluation

Can anyone help me to clear this question.
Do i need to do GVTR or F.16 (Balance carryforward) for new fiscal year before perform the foreign currency revaluation for a GL account? We are using account balance method (not open item).
The reason i asking this question is because when i do the foreign currency revaluation (tcode:F.05) for a GL account on the first day of the new fiscal year (revaluation key date = first day of new fiscal year,let say '01/07/2007'), the system show 'List contains no data'. However, when change the revaluation key date = last day of current fiscal year (30/06/2007), the system is able to display the relevant data.
Thanks in advance.
CH Wong

Hi Sachin,
the question is in fact how can we tie back the postings to the original documents:
e.g. I have 1 custumer invoice. Document number 1 which through document split has received 2 profit centers.
On the first screen 1 get 1 line:
                                            original FX rate          reval FX rate
document 1 : 100 USD        ,75          75 EUR       ,80     80 EUR       5 EUR exchange rate difference to be posted
If I click on the postings button I see :
debit FX differences    3 EUR profit center 1
credit FX gain               3 EUR profit center 1
debit FX differences    2 EUR profit center 2
credit FX gain               2 EUR profit center 2
We are searching for a list that replaces the first list and looks like:
                                                                     original FX rate          reval FX rate
document 1 : profit center 1 60 USD        ,75          45 EUR       ,80     48 EUR       3 EUR exchange rate difference to be posted
document 1 : profit center 2 40 USD        ,75          30 EUR       ,80     32 EUR       2 EUR exchange rate difference to be posted
Thanks in advance for your answer.
Best regards
Sven

Regarding foreign currancy revaluation

Hi Gurus
This is regarding foreign exchange revaluation.
After using tcode f.05 that balance amount whether gain/loss
This will be affected profit and loss account gain/loss account
As well as balance sheet( they want to be affected two places 1. balance sheet ( A/R gain or Loss another A/P gain or loss) 2. Profit and loss
Balance sheet gain IF   A/R a/c1111110(gain)
                    A/R      a/c 1111112(loss)
                                   (Or)
                    IF   A/P 2222220(gain)
                           A/R 2222222(loss)
As well as profit and loss account
Gain 5555555f
Loss 5555550
Above like that how to configured
Please tell me hw and where to assign g/ls and
In Tcode OBA1 where I want to give assignment above gls
Regards
SS.

Hi Supriya,
You can use Transaction KDF on T-Cod OBA1. In this for each reconciliation account you have to define the GL setting as per e.g., shown below
Chart of Accounts    XYZ1
G/L Account           5210100 (AR / AP Reconciliation GL account)
Currency
Currency type
Exchange rate diff realized:
Loss                 2400002
Gain                 2400002
Valuation:
Val.loss 1           2400001
Val.gain 1           2400001
Bal.sheet adj.1      2400004
You can set different Valuation accounts for AR & AP reconciliation accounts.
Hope this helps
Cheers,
Som

Foreign exchange reporting : how to include Inhouse Cash Accounts correctly

Hello,
I want to report the foreign exchange risk position of a mother company (euro based) which is also hosting the inhouse cash center. This means that the foreign currency balances held by the affiliates with the IHC are part of the fx exposure of the mother company. For example, a polish affiliate that has a PLN balance of 1 mio PLN (in favour of the affiliate) means a FX SHORT position for the mother company.
In AISFSS or FTR_DEALPOS you can include Cash Management information. But it makes no sense to include the IHC accounts of the affiliates in the exposure report of the mother company, because the direction of the exposure of the affiliate account is the opposite of the mother company's exposure. i don't want to reprogram CM to inverse the sign.
So, then I thought, ok let' s include the receivables/payables accounts 416xxxx and 439xxx that centralize (via F9HL + F9HI ) the affiliates balances in the FI ledger of the mother company. Unfortunately, these two accounts are not managed in open line item mode. Accountting department does not accept that we cahnge that setting.t The consequence of that being that in the CM grouping I get the countervalue in euro instead of the balances in the respective foreign currencies.
Instead of having the IHC balances aggregated in one Accounts Receivable and one Accounts Payable account, Accounting department would agree to have one G/L account per trading partner/ currency, which would be a perfect reflection of a single IHC account.
I had been told that there would be a T-code (in SAP Inhouse Cash) that allows you to re-split in FI the affiliate balances per currency/trading partner. If this works, then I can pick the currency balances up in original currency via CM grouping.
Does anyone know about this T-code (to split), does anyone have documentation or does anyone have an alternative solution (no ABAP programming).
Thanks a lot for your help.
Carl

Hi,
Yes you can use this report IHC_TOOL_TRAPO (Note number 750700) and do the necessary settings in the corresponding custimizing table. Though I am not sure why you want a separate valuation according to different trading partners. Are they posting to different G/L accounts for different TPs for the account in same currency?
Anyway, you can maintain the setting only for those affialiates having accounts in foreign currency. Also I guess it should be enough if you maintain only for final postings account and not for intermediate postings (provisional) in case if you are having 2 accounts. You can also check in the customizing node mentioned in the previous post - you can use the additional key field and use a custom coding in case if you feel the report is not going to be suffecient.
Regards,
Ravi
Edited by: Ravishankar Ramamurthy on Jan 21, 2011 5:00 PM

Foreign Exchange accounting in TRM

Dear Experts,
To give you brief intro, i am a finance person and user of SAP Treasury module. my knowledge of the module is of user level and not of functional or technical level.
i need your help on my below query.
for foreign exchange trades (60A), what should be the right accounting practice thru TRM (1) at time of of entering into deal (2) at time of maturity of transaction and also at time of (3) pre mature or part settlement of the transactions.
currently, i do not post any entry at time of creating 60A/102 deal.
at time of maturity, i does cash settlement in deal, put the cancellation rate, date of cancellation in date box to generate gain / loss and post the same (only cash settlement entry) thru TBB1
in case of part or early utilization or forward contract, i does the pre mature settlement from ftr_edit and copy paste 102 deal details in 105 and 103 deals including contract date and value date except for amount. thereafter, i settle both deals and cash settle 105 deal with cancellation rate and transaction date in date box to generate gain / loss. this gain / loss is posted thru TBB1. in this case, when i have taken early delivery, i have to add or subtract swap points in final rate to arrive at correct rate. also, i have to to cash settle 102 and all 103 deals when there's final amount settlement whether on due date or before it.
in my case, buy sale position of two currencies are shown in cashflow tab as "not rel. for posting" and is not posting even on maturity.
i know i have given bit lengthy details but i really wants to understand
1. is above practice of recording fx transaction is correct?
2. is there any better way to capture early deliveries?
3. in case of early delivery, is it right & necessary to replicate 102 deal details in 105 and 103?
4. what is role of TPM18 which i am not using at all in above scheme of fx set up?
your valuable reply will be of great help to me.
Thanking you all in advance
Kapil

Hello Kapil,
Your questions has covered most of FX process.
I'll try to answer few of your question.
Answer 1) The process is correct, Its based on what your company required consultant has customized the system in that fashion, As you said there is not posting even during maturity of deals, that because in customization setting is missing for posting. Incase its required please consult you consultant to make the changes in system for Flow type-(here relevant for posting is unchecked).
Answer 2 & 3, I'm not sure why consultant has suggested to use such a lengthy process to settle early deliver deal, There might be some reason for the same. Please check,
But the same process can also be addressed, throught FTR_edit and settle the single deal through cash settlement.
Also note, 103 is only used for netting which means you are trying to settle couple of deal together and that can be excluded if you have only single deal.
Answer 4) TPM18 is used to do the valuation after the deal has been closed.Realized gains and losses are determined according to single valuation of transactions principle. This is calculated by taking the difference between the forward rate based on the conclusion of the contract and the posted rate on value date.
Let me know in case you need more information.
Regards,
Jaiin

GL account not to be valued in year end foreign currency revaluation

Hi
I have given payments in USD from my INR bank account. In year end valuation, that account should not be revalued since it is in INR.
so i am putting tick in "Only balance in local currency" in FS00.
Inspite of the tick, that GL account is revalued in FAGL_FC_VAL. Let me know how to prevent the valuation for the same.

There is no exchange revaluation key in the GL account control data section. Infact the field is supressed in FS00
Edited by: Deepak Agrawal on Oct 8, 2009 11:03 AM

Foreign Exchange difference posted to price difference account at MIGO

Hi,
We have a problem regarding posting foreign exchange rate difference at the time of GR.
We are costing materials at the beginning of year, and purchases made during the year as per PIR will result in legitimate price difference which is posted to price difference account. Thatu2019s working alright.
Now, due to new business requirement, we maintained PIR in MXN (Mexican peso), & standard cost is converted in local currency USD as per exch. rate maintained in OB08.
Now, when we do GR, the difference of foreign exchange at the time of Std. cost & GR date is posted to Price difference account instead of foreign exchange account. For eg. Std .cost of material A is 1000 MXN, and GR cost of material X is also 1000 MXN, however corresponding USD is different because of different foreign exchange rate.
Will appreciate if someone can suggest on how can we post it to exch.rate diff.account instead of price diff. acct. ?
Thanks,
Nirav

Hi,
Thanks for your replies.
We have already maitained exch.rate GL OBYC-KDM, which is successfully posted with the exch.rate diff.arising out of GR & IV at the time of IV.
I'm talking about price difference in Std. cost & GR value because of exch.rate diff.
For example, Std cost for Material A is 1000 MXN converted to $100 with exch.rate of 10. Now, GR happens with 1000 MXN converted to $200 with prevailing exch.rate of 5. Please note that std. cost and GR is the same price 1000 MXN, but USD amount is changed resulting $100 gets posted to PRICE DIFFERENCE Account, whereas we want to post it to FOREIGN Exch. diff.A/c becuase it's arising out of exch,rate difference.
Please let me know if it makes sense.
Thanks,
Nirav

Accounting entries for Foreign currency revaluation..Accounting entries

Dear All,
Can any one tell me the Accounting entries for posting foreign currency and foreign currency revaluation..
Regards,
Suresh Patipati.
Edited by: suresh patipati on Feb 17, 2009 7:45 AM

Hi,
I will mention entries from Vendor point of view on that basis you can get the idea.
1. If there is a Unrealised loss.
Unrealised loss A/c...............Dr.
To Balance Sheet Readjustment A/c......Cr.
2. If there is a Unrealised Gain.
Balance Sheet Readjustment A/c......Dr.
To Unrealised Gain A/c.....................Cr.
3. If there is a Realised Loss.
Realised Loss A/c......Dr.
Vendor A/c.................Dr.
To Bank A/c.......................Cr.
4.If there is a Realised Gain.
Vendor A/c..........Dr.
To Bank A/c....................Cr.
To Realised Gain A/c.......Cr.
Best Regards,
Shridhar

Accounting of foreign exchange gain /loss on imported material at invoice

Dear Experts,
This is with reference to the accounting of foreign exchange gain /loss on imported material at the time of invoice posting.
Presently all the capital expenditure related procurements are done against the WBSE as account assignment. The material is
procured against the project consumption account with WBS as the account assignment. Since the GR is done on day 1
at a particular exchange rate and the material is directly accounted for against the project consumption account,
there is no stock available.
The invoice is received subsequently and the same is accounted for on say Day 4 at another exchange rate, resulting in exchange gain/loss on account of difference in exchange rate between GR and IR. The same is accounted against a cost element with the additional account assignment as WBS derived from the purchase order.
However, the business requirement is to account for the foreign exchange gain/loss against the Cost center, since the
same cannot be capitalized as per the accounting standard.
In spite of maintaining the default cost center derivation against the foreign exchange gain/loss cost element in OKB9,
the invoice document line item is taking the account assignment from purchase order and not from OKB9.
We have referred the SAP note 105024 and implemented the same.
However, as per the note the following is possible "Use a substitution (Transaction OKC9) to transfer a cost center or a
statistical order as auxiliary account assignment to the document or to replace CO account assignment."
But when we are trying to check the same, the system is updating the required CO object i.e. cost center as auxiliary
account assignment and not as a replace CO account assignment.
We are looking at the option of replacing the WBSE with the cost center in the line item for CO account assignment.
Please help in this regard.
Thanks and Regards,
Mohd. Abdul Moghani

hi,
in OBA1 settings please enter main bank account insteed of exchange gain or loss accounts. then that difference it will post to mail account only insteed of exchange gain or loss account.
with regards
Madana

Foreign Exchange Revaluation of GR/IR Accounts

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