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

Similar Messages

Very very urgent - foreign curency valuation

Hi
when i am not assigning the cost centre to vendor in FB 60 then the foreign currency valuation is working properly. but when i assigned the cost centre then i am getting following error
Posting for general ledger account 15201001 amount 2.028,00- set in batch input
Message no. FR008
Diagnosis
In an evaluation that affects the financial statements, the posting for company code 211 and G/L account 15201001, in the amount of 2.028,00- INR, could not becarried out.
System Response
The posting is entered in a batch input session.
Procedure
Correct the error, for example, missing account determination, and run the batch input session.
This ensures that the postings and the evaluation difference noted in the documents agree again.
My diagnosis:
I have checked all the configuration of FCV and its correct. i am not understanding why above error is appearing. Also i dont want to do it in batch run.
Please give me the solution ASAp
its very urgent
TANUJA

I am confused by answers i am getting
I will elaborate my scenario:
I am doing foreign currency run for my vendors. each vendor will be assigned a cost centre in FB60
15201001 is my vendor recon account. To this recon account in OBA1 in transaction typr KDF i have assigned five accounts. two for realised gain/loss acct and two for unrealised gain/ loss acct and one balance sheet adjst acct.
I have also created cost elements for above unrealised gain/loss account to which i have not assigned any cost centre.
I had also config val area, val method, acc principle for FCV.
I think my config is correct.
Are there any settings still pending which required to be done for vendor account
Thanks
tanuja

FC valuation not getting posted to non-leading ledger

Hi Gurus,
I need your help to resolve the following issue. We have a company code with 1st LC as EUR and 2nd LC as USD which is group currency. We have valuation area V1 assigned to the ledger group that has set-up for postings to both leadine (0L) and non-leading ledger (Z1). When I am trying to run FC valuation using transaction FAGL_FC_VAL, the valuation document gets posted to leading ledger only. There is no posting to non-leading ledger. The other ledger tab is missing in the GL view of the document confirming that the posting happened in the leading ledger only.
I have gone over lot of threads in the forum but could not figure out the issue. I would really appreciate if someone can guide me to resolve this issue.
Thanks,
Shalu

Hi Shankar
Thanks for your reply. Yes, the non-leading ledger is active and has been assigned properly to the ledger group. The set-up is working fine for all company codes except one company code. In our set-up, for all company codes, we are using a valuation area V1 with always evaluate as valuation menthod and CC curency as currency type and Group currency as additional currency. We were having some valuation issues with one company code with existing set-up as Local currency 1 was different from LC2. In order to fix that issue, I created new valuation area V3 with same valuation method and currency type but no additional currency. The ledger group and assignemnts were same. The original issue with curency valuation got resolved but the new issue appeared that the posting is happening only in the leading ledger and nothing for this company code is getting posted to non-leading ledger while running transaction FAGL_FC_VAL.
If I manually force the currency in F-02 in this company code, the posting does happen to the non-leading ledger. The issue is with automatic postings only using area V3.
Please help.
Thanks,
Shalu

Realized Exhange rate in Group Currency

Dear all,
I've issues with Group Currency. I have 2 company codes, one (1000) uses USD & one (2000) use SGD. Group currency is USD.
In company code 1000, I have customer invoice in 1000 USD. After that, I post without clearing for customer payment 1000 USD. Then, I clear this customer by t-code F-32 (also curency USD)
Normally, when clearing customer by this t-code, system with generate a document with has no entry. But in my system, when do this, system will generate an entry like this:
In document currency
Debit Customer 0 USD
Credit Realized ExRate 0 USd
In Local Currency:
Debit Customer 0 USD
Credit Realized ExRate 0 USd
In Group Currency:
Debit Customer 1000 USD
Credit Realized ExRate 1000- USd
So, the result will be wrong when I issue consolidation reports at month end.
Do you know how to correct this ?
Thank you very much for your help,
Best regards,
Sylvecat.

Hi pls check foreign curency valuation method in that few check boxess or there which u need for ur requirement that one uselect . i think as for ur issue u did selecte reset checkbox pls remove that one
Once u selected reset check boxt then the open items are valuated at the aquisation price . this way the valuation differenceis set zero.the old valuation method is reset.so the account determination is reversed:the revenue that arisesis posted to the expence account.
Rgds
ANAND

IPI: No exhange rate indicator

Hi,
I was trying to execute IPI from consolidation monitor and system
prompted for the following error messages:-
1) No exchange rate indicator for balance sheet items for period 2007/1
2) No exchange rate indicator for income statement items for period
2007/1
The IPI design involved only local currency hence i don't need a
exchange rate indicator to perform any foreign currency translation.
Please advise.
Regards, Renee

Hi pls check foreign curency valuation method in that few check boxess or there which u need for ur requirement that one uselect . i think as for ur issue u did selecte reset checkbox pls remove that one
Once u selected reset check boxt then the open items are valuated at the aquisation price . this way the valuation differenceis set zero.the old valuation method is reset.so the account determination is reversed:the revenue that arisesis posted to the expence account.
Rgds
ANAND

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

Post Foreign Currency Valuation

Hi Friends.
In F-05 (Post Foreign Currency Valuation) when I mention the amount in GBP which is a foreign currency and proceed to post, the other currency fields are not populated (Local currency and Hard curency)
(when u click "more data" tab the fields local currency, hard currency fields will get populated and in my case they blank)
Please suggest
Thanks,
Krishna

Hi Krishna,
this is a normal thing, we run a similar valuation for MXN against USD, with MXN being the company code currency. We also run MXN against EUR, GBP, whatever.
When we valuate MXN, we get the field Hard Currency updated, because the MXN value does not change.
When we valuate USD, we get an entry for the MXN value, because in that case the USD value does not change.
Either way you will always have only one value, because you keep one currency stable, and re-calculate the new value of the other based on changes in the exchange rate.
Hope this helps,
Kind regards,
Rudolf

Intrastat - Inbound/Outbound of non valuated materials used in production.

Hello everyone,
I've found several threads and very useful posts (ex: Re: PO Creation of free goods for intrastat reporting) regarding similar issue, but the solution proposed was manual input, therefore not answering totally to my client requirement.
I am actually performing maintenance activities and there is this new business process, I have been searching for the correct understandind of this process regarding intrastat here and I haven't found.
So i will describe the process hoping that someone can give me some hint:
Vendor A
Customer B
Raw Material R
Finish Product P
Service S
1. So we ( Vendor A ) receive raw material from our Customer B (+mov.type +)
2. We ( Vendor A ) with a production order process the Raw material R into Finish Product P.
3. We ( vendor A ) send the Finish Product P back to the Customer B.
4. We ( Vendor A ) then issue an invoice for the Service S to the Customer B.
5. It can occur that we Vendor A, can send back the Raw material R which was not manufactured back to Customer B (with a mov type.)
So thiswas the scenario and how the process is beeing done, and the client understanding is:
- As far as i understood, (please correct me if i am wrong) the Raw Material R must be declared (Quantity and statistic value) in Purchasing Intrastat, in the transactions where the Vendor A receives the raw material and as well in the case that they send it back to Customer B.
- Regarding the Invoice from the Vendor A to Customer B, the Raw Material R is incorporated in the Finish Product P, therefore I've been told that, the Statistic Value determined in the invoice in this situation has to include the cost value of the raw materials R.
My issues in MM are the following:
1 - If Raw Material R is non valuated, how can i maintain its statistic value to be declared, in inbound as well outbound? as an Info-record?
My issues in SD are the following:
1 - If the Statistic Value GRWR can be for example 102% calculated over the net value, and if the cost value of Raw Materials R are to be included, so i would have to add them somehow to the statistic value.
In this case the question comes up, where do i maintain the value of the raw materials R, and how to add it to the statistic value automatically ?
Regarding what is implemented in this client, they have SD intrastat running, but not MM intrastat was implemented.
Feedback would be highly appreciated!!
Thank you in advance.

Hi Sergio,
I have this exact same requirement but on a bigger scale.
The complexities are:
1. The raw material which client use, that can be either supplied by customer or can be procured by client. Remember, customer's raw material and my externally procured raw material is exactly same in all properties.
2. There are many customers who send same exact raw material.
Requirements:
1. Client wants to use same material codes (for raw materials and even for finished products) for normal production cycle and for Job work cycle. Master data needs to be the same, and data need to be separated at transaction level.
2. Whatever raw material client gets from customer, its statistical value should be entered at the time of goods receipt.
Please suggest if preference processing can handle this.
Thanks & Regards,
Vishal

FI MM integration _ Non valuated GRN

Hi
In FI MM integration if you acquire an asset through PO the asset value gets captured automatically.
For single asset - One PO one asset - there is no problem - at the time of MIGO (Goods receipt) the GRN becoems "valuated" and asset get the value automatically.
For multiple account assignement - One PO - MORE THAN ONE ASSETS - the GRN becomes "non valuated " (automatically- the field is grayed out). The account document will not be generated. The asset value will be captured on the MIRO date.
1) Would it be a good practice? Ideally asset value date should be GRN date ..
2) If anyone has worked on this - pl. guide me as to how can i valuate the GRN for multiple account assignment.
regd
Vedavatee

Yes Veda,
When you have multi account assignement in PO, GRN Non-valuated option automatically de-activated (greyd out).
ME23N - Item data - Delivery - GR Non-Valuated
This is Standard SAP behaviour.
At the time MIRO, the entry will post as per the Account assignment given in PO - Splitting structure.
There is no other way to do it.
PO - Multi account assignment - GRN Non-valuated.........This is right approch as of today
You are correct, go ahead
Thanks

Third party process with Valuated sales order stock

Hi All,
We have third party sales order process with valuated sales order stock. The problem is that in the theird party PR which is triggered directly from the sales order it determines a stock account which is assigned to the BSX key in OBYC.
But since this is third party processing as per my understanding a consumption account assigned to key GBB-VAX (since account assignmnt category is X) should get determined, so that when the GR is done against the PO a consumption posting is done in the background.
I am not able to understand if the system is determining the stock account due to the fact that it is valuated sales order stock and if so, what should happen after GR. Should we have a stock created for the material which is physically directly delivered to the customer?
Regards,
V S

Hi,
Check GBB-VKA which is defined in OME9 for your ''E'' Account Assignment Category that SAP will debit upon GR posting
Also check "X" GBB-VAX and the G/L account assignment in OBYC
The posting on GR should be debit KBS -Credit GR-IR
Thanks
Diwakar

De-linking (Valuation class & GL A/c) automatic posting in Invoice booking

Experts,
I have a issue regarding link between FI & MM
From what I understand,
there is a link between Service & Valuation class
& also a link between valuation class & GL.
This link enables automatic FI line item posting while invoice booking.
My question:
1. Can we break the linkage between valuation class & GL i.e. we want to stop the automatic posting
2. What is the effect of above
3. Would you advise to do this .. ? Why?
Regards,
KPS007

Hi,
SAP standard process are the best business practises and it should changed only when we have genuine business problem and not for people issue.
There are several scenarios will occur during MIGO and MIRO. For each scenario system should determine a correct Inventory account, GR/IR clearing account, Price difference account and etc. First you need to prepare an excel sheet with all your possible business scenario, valuation area/valuation grouping code and their respective GL accounts. Once you have listed out all the scenarios and correct GL accounts, you can configure the system as per your requirement. Initial home work is needed to avoid any difference in account posting. Hence try to fix the source of your problem rather than changing the best practise. Account determination is vast and it cannot be explained here but please refer the below link.
http://help.sap.com/saphelp_46c/helpdata/en/12/1a39516e36d1118b3f0060b03ca329/content.htm
Regards,
Senthil

What is diff b/w valuated and non valuated

hi
can anybody tell me what is difference between valuated salesorder and nonvaluated saled order stock
thanks
prasad

Hi,
While creating the Sales order, system explore the BOM for that FERT. Say, I add one more extra component in sales order which is not been maintained in BOM or which has not been valuated for Std cost estimate for that FERT material. This extra component is call it as Non-valuated sales order stock. All other, valuvaed materials are valuated sales order stock.
Hope, it helps!

MC.9 Caculation for Valuated stock turn over

Hi All,
For an item X –quantity sold is $ 11095
May Opening stock in $ : 145044
Stock as of today in $: 48879
Can anyone help me to find out the inventory turn using the formula in MC.9? it is because am not able to find how MC.9 is calculating turn for valuated stock.
Thanks Vijesh

Hi ,
MC.9 is designed S03* table , to my knowledge , you have to modify lis table.
SAP Note 64636 - Procedure for statistical data setup in LIS
SAP Note 111691 - Material-related statistical setup
Inventory Controlling
SAP Note 453420 - Incorrect stock values in LIS
1858368 - Value for field “Valuated stock” or “ValStockValue ” is incorrect in S032
On the otherhand, I understand that you need to period stocks quantity --> Please look at MBEWH table.
Also , MB5B report might be respond your query.
Regards.
M.Ozgur Unal

MC.9 Valuated Stock Issue

Hi Experts,
MC.9 stock is showing the quantity where MMBE or RWBE or any other stock report is showing the quantity as zero for particular article.
For Ex. 100000001 article has 20 EA in MC.9 as a valuated stock in store 3001 but whenever I check in MMBE or RWBE or MB5B, the article quantity is showing as Zero.
I checked in MMBE, there is a 20 EA (through STO) in Stock in Transit for the site 3001. But for this financial year, our client has not raised any documents for the article. Even we did the Goods receipt for 20 EA which was on Stock in Transit. But still MC.9 report shows the 20 EA as valuated stock.
Now my question is,
How can I make the Valuated Stock as Zero in MC.9 report??
Any inputs are highly appreciated.
Thanks & Regards,
n a v a s h e k

Hi Priyanka,
Already I did the PI with zero quantity for particular combination (Article & site). Physical Inventory (PI)I also got posted successfully. But still valuated stock is exist.
Expecting further help.
Solved. There were two open document from the last financial year and I closed the documents & done the PI with zero count. Now the MC.9 and other stocks reports are shows zero quantity for those articles.
Thanks for all.
Regards,
n a v a h s e k
Edited by: navahsek on Jun 3, 2009 3:00 PM

MC.9 report: stock is zero but valuation is showing

Hi,
i have found this very peculiar scenario. we were running the std SAP report MC.9.
we run this report for a plant for a given period.
there are some materials for which the stock is zero and the valuation is zero very normal behavior.
for some materials the stock exists and the valuation is as per the material master accounting view 1.
for some materials the stock is zero but the valuation exists. it is found negative.
we checked the stocks they are correct and the sum is zero.
we checked the valuation changes there are some with cost estimate runs.
the sum of the goods issued are not matching with the report value.
we are working on 4.7 version.
i tried to search the forum but none is explainning the cause. please throw some light in this regard.
Adwait Bachuwar

please check the OSS notes 120592 and run the program RMCBNEUB in bckground so that it will update the s032 table .Generally these tables will not get updated sometimes.Running of the program will improve the efficiency of the report.
Or approach SAP for a solutions.
sometimes the statistical tables related to MC.9 will not get updated properly.
Regards,

Freign curency valuation

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