Initialization of Parallel Valuation Area

Hi All,
what is initialization of parallel valuation area setting and what is the key date needs to be used here.
Regards,
Andy

Hi Ravi,
I have maintained Valution area 099 for co code XYZ, It already had valuation area 001.
step by step..gng to TRM- Tr Mgr-Gen Settngs- Acc- Org
1) define val area : 099 defined
2)assgmt of valuation areas to co code -defined new val rea for xyz ( it already had for 001)
3) *** of gen valuation class to specific class - defined here 099
4) assign position mgt proceedures- assignd the valuation class 099 for the product used
when i create the transaction it gives me following error
TRL initialization for Securities, co. code XYZ, valn area 099 is not yet
complete
in Initialization of Parallel Valuation area : it is giving Country key not defined
pls help

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Parallel Valuation Area Initialization Question

Our Treasury configuration was originally not set to post to our parallel valuation area. For the past few months we have been doing Journal Entries to true-up the parallel ledger to the operative ledger. I have completed the configuration to post to the parallel area, however, when executing TPM_Initialize the system want to post old flows to the parallel ledger. Is there a way to not post these flows to the parallel ledger since we've already taken care of these postings with JE's? Thanks!

Hi,
If you want to use parallel valuation areas, then initializing the flows has to be done. Give a key date before you started posting JE for the parallel ledger. It will post only before the key date.
Or try excluding your product categories from initialization by specifying the product categories in the exclusion list.
Instead specify the update types for initialization as not relevant for posting. This will ensure that the treasury subledger will be correct while no G/L entries would be generated.
Regards,
Ravi

Treasury Money Markets- Operative Valuation Area and Parallel Valuation Are

Hello Folks
I have a problem I am trying to fix in Treasury Money Markets. The guys that created the fixed term deposits in Money markets did not create them in the Operative Valuation area. They created them in the Parallel Valuation area and went ahead to initialize it, they deleted the operative valuation area. Now the problem came in when new transactions were created. In the process of creation they asked for the operative Valuation area i.e. the new transactions being created. This was then created, but now the problem comes in settling and posting of the old transactions that have matured. These do not exist in the Operative Valuation area.
I cant post anything using TBB1 for the old transactions that were created without the operative valuation area, the system dumps and from the analysis I can see that its the lack of the operative valuation area. For the new transactions being created, a payment request cannot be generated for transactions requiring one.
How can I make sure that the Transactions in the Parallel valuation area also exist in the operative valuation area? Has anyone ever had this problem? Any suggestions on how I can go about solving this problem?
Regards
Valentine

Hi,
I assume the valuation area you are asking about is in transaction manager component only. Technically all valuation areas are same in the sense that they have the same functionality. But from a functional stand point, every valuation area is determined based on either different accounting principles or different valuation needs. For e.g. one valuation area can be for your local GAAP while one can be for IFRS. It all depends on the business requirements whether you need multiple valuation areas at all or you can use one itself.
By default 1 valuation area is required and hence 001 will be active and this will be your operative valuation area. Any other valuation are you define will be parallel valuation area. Now if you dont want other valuation areas, then you need not create them. In your system, if you have been using 004 as for lets say IFRS and after upgrading you can configure 001 according to IFRS itself if you dont want VA according to any other GAAP.
Regards,
Ravi

[FSCM] add parallel valuation area and new valuation classes

Hi, everyone
I have a plan to add parallel valuation area and new (general) valuation class for International Financial Reporting Standards. But I have no experience adding another valuation area. Basically, SAP says new valuation area could be added any time. The concept of parallel valuation area also support that. But I am concerning that there could be a problem technically. Even though there would be a problem when I try to transfer valuation class of new valuation area.
If someone has an experience with these problems, please let me know and prepare that.
Thanks.
Best regards.
Minsun Joo

OX14 - Define Valuation Area (Tick one only- Once your system go live, no more changes)
             Most company take the SAP recommended choice - Value Material Stock at Plant level
             Value Material Stock at Plant or Company Level
          o If you valuate material stocks at plant level, the plant is the valuation area.
          o If you valuate material stocks at company code level, the company code is the valuation area.
          o The decision you make applies to the whole client.
Kesh

Parallel valuation area in CFM

HI FSCM Gurus,
Can anyone tell me what all settings are required activate the Parallel Valuation area in CFM.
Thanx in advance...
Useful answers would be definitely rewarded.
Cheers
Megha

Dear Megha,
In Corporate Finance Management, you depict parallel valuation methods using the valuation (depreciation) area. This means that you have to define a valuation area for each of your accounting principles.
The results of the valuations are posted separately by valuation area. For each valuation area, you can decide whether you want the postings to be made to the general ledger or to an additional ledger.
Features:Each valuation area provides you with various classifications that you can use to depict the various valuation rules in the individual accounting principles.
Financial assets: You can divide your financial assets into various valuation classes.
Structure of stocks: You can set the structure of your stocks using characteristics (terms used for differentiation purposes).
Financial products: For certain financial products, you can activate single position management (lot accounting) with various consumption sequence procedures.
You control valuation of your stock using position management procedures that you can assign to stocks depending on the valuation area, valuation class and other characteristics. In the position management procedure, the legally binding valuation approach is defined for valuating a stock (such as lowest value principle or key date valuation).
Hope I had been able to help you. Please assign points and let me know if you need anything specific.
Rgds
Manish

Processing payment in Parallel Valuation areas

Hi gurus,
from business point of view, you trigger payments only from Operative valuation area (001), which means in SAP, that:
- (step 1) first you post respective flows (TBB1), which results in some open items on Open G/L account (one clearing accont) or Customer subledger;
- (step 2) then you execute payemnt program (F111 or F110), which results in clearing of previous open item (in step 1) and creates new open item on respective bank subaccount (depends on Master data of Business partner - SI: payment details);
- (step 3) and last you receive your bank statement, representing confirmation of executed payment. Then you of course post bank account vs bank subaccount and clear the last one.
However, my question is - do you need to follow the same 3 steps for Parallel Valuation areas? Or instead at the beggining you only post to Operative Valuation area (at TBB1), when execute payment run (F111), process bank statement and only after that update Parallel Valuation areas, without steps 2 and 3 (described above). How then it's possible to achieve such functionality, that posting (TBB1) would directly affect respective bank account (vs posting over clearing account and subaccount) - do you need another posting specifications, assigned to payment relevant update types in Parallel Valuation areas and another account symbol, representing Bank account direcly or some other solutions?
Appreciate your advise.
Rgds,
Renatas

Hi Prasad,
thanks for your reply.
I pretty understand the idea of Parallel Valuation areas.
However, if you say that you don't post to GL with TTB1 (I mean those Update types are marked as not relevant for posting) in the Parallel Valuation areas, so my question is how you will get your update of GL accounts in those non-leading leadgers and create required Balance Sheet ? Let's say, you placed deposit of 1.000 EUR with some bank with start date 24/04/20XX, so TBB1 should produce such kind of posting in Leading ledger:
Debit /// Position Money market (Asset side of Balance) /// 1.000 EUR /// Posting date 24/04/20XX
Credit /// Bank clearing accoount (Asset side of Balance) /// 1.000 EUR /// Posting date 24/04/20XX
Rgds,
Renatas

Convert Operative Valuation Area to meet the New GL requirements

Hi experts,
Up to now, in our customeru2019s ECC 6 system in the treasury module, there was only one operative valuation area (001) that it is linked to SAP/FI. This operative valuation area calculates results and creates accounting entries based on the Local GAAP which is the only existing ledger in SAP/FI. Our customer wants to activate the New GL functionality in SAP/FI and moreover to have as leading ledger the (New) IFRS Ledger through the migration approach. The other ledger (secondary) will be the local GAAP ledger.
What we already know is that the operative valuation area (001) must be always linked to the leading ledger. Thus the solution for this situation will be the conversion of all the flows from the existing operative valuation area (001) to the new valuation area (002)[new Local GAAP] and after the respective customizing to initialize the IFRS balances per financial instrument to the new operative valuation are (001) [new IAS GAAP].
Could you please be kind enough to know if there is a conversion tool which can deal with this situation or there are other alternative approaches to the issue described above?
Thank you for reading it,
G.P.

Thank you all for your replies.
Our problem is not on how to activate parallel valuation areas and to perform the respective customizing settings for parallel valuation and posting.
Up till now the operative valuation area 001 u2013 (Local GAAP), (we do not have second valuation area), is linked with the current leading ledger in SAP/FI, (there is only one General Ledger in SAP/FI based on Local GAAP). From now on and after the activation in SAP/FI the New GL functionality through the migration process, the Leading Ledger in SAP/FI will be the (New) IFRS Ledger.
The operative valuation area (001) in TRM must be always linked with the primary leading ledger of SAP/FI.
The problem is in the link between the operative valuation area (001) in TRM and the Leading Ledger in SAP/FI. We cannot continue to use as operative valuation area (001) the current one that makes posting to Local GAAP ledger and SAP/FI to have as primary ledger the new one that is based on IAS GAAP.
So the question is after the activation of the parallel valuation areas how to convert the flows from the up till now operative valuation area (001) into a secondary valuation area (002) and to use as operative valuation area (001) the new one based on IFRS.
Thank you again for your replies, we would appreciate any help.

Operative and Parallel Valuation

Hi All:
I cannot get my head around this and I am sure someone can explain it -- what are the differences between Operative and Parallel Valuation?
I am a technical guy, who is not involved into Finance, especially GL areas. But what see so far is both these areas are used to revaluate deals and only difference I see is that parallel valuation creates entries during re-valuation for each individual line item; while operative does one per transaction.
If that is not critical, technically I should be able to create only one valuation area, and that should be operative area (001)
Little bit of background info: we are moving from R3 to ECC6. in ECC6, operative valuation is a mandatory and it has to be setup. While on R3, my client had only parallel area (004). so I don't see a point of mapping both valuation areas in ECC. I should be able to get away with 001. Am I correct?
Thanks,
JS

Hi,
I assume the valuation area you are asking about is in transaction manager component only. Technically all valuation areas are same in the sense that they have the same functionality. But from a functional stand point, every valuation area is determined based on either different accounting principles or different valuation needs. For e.g. one valuation area can be for your local GAAP while one can be for IFRS. It all depends on the business requirements whether you need multiple valuation areas at all or you can use one itself.
By default 1 valuation area is required and hence 001 will be active and this will be your operative valuation area. Any other valuation are you define will be parallel valuation area. Now if you dont want other valuation areas, then you need not create them. In your system, if you have been using 004 as for lets say IFRS and after upgrading you can configure 001 according to IFRS itself if you dont want VA according to any other GAAP.
Regards,
Ravi

Parallel Valuation Issue

Hi Experts,
In TRM, I have configured three valuation area. 001 for Operative Valuation and 002 and 003 are for parallel valuation. After some time, I was not requiring Parallel valuation 003. therefore I have deleted the same. while doing my TBB1 posting, The deletion resulted in Error message like a short dump and it was getting logged out from TBB1
To fix that, I have went to Initialize Parallel valuation step, Executed Fast Entry for both Parallel Valuation 003, then i was able to post my transaction in TBB1, But i am finding the entries are coming only for Valuation Area 001 which is Operative Valuation and not coming for Valuation Area 002 Parallel Valuation.
I appreciate any kind of guidance or direction from you on my issue
Ganesh

Hi Ganesh,
I am currently having similar trouble with TBB1 where I receive error message below:
TRL intialization for MM, FX, Derivatives, co. code WTRD, valn area 003 is not yet complete
Message no. TPM_TRL052
Are you familiar with this issue? any help would be greatly appreciated! i hope that you can help..

Parallel valuation deactiviation problem

I define in spro for parallel valuation posting rule and document type ZX , after that I run askbn, and post some document.
now I find I can't deactiviate parallel val. in asset accounting, i have multiple depreciation area.
error below when I try to remove document type ZX for company code I001,
(1)Number range has not been created for document type .
Message no. AA738
Diagnosis
No valid number range interval has been created for document type .
Procedure
Specify an interval for number range in the year 999 for company code .
(2) error 2:
Create document number range with external number assignment
Message no. APERB007
Diagnosis
Processing was terminated since the document number range for year 23.09.2011 is set up for internal number assignment.
System Response
You have to enter a document number range with external number assignment for periodic posting of asset values, since the document numbers are not assigned by Financial Accounting, but by the posting program of Asset Accounting. External number assignment should therefore not be equated with manual number assignment. In this case, it means instead that number assignment is external from the point of view of Financial Accounting.
Procedure
Change number range from internal to external number assignment in Customizing for Asset Accounting. Or check the document type entered.
but I already assign number range 31 (external number range) for document type ZX. so how to remove?

Hi,
I already mentioned below:
but I already assign number range 31 (external number range) for document type ZX.
I already flag external number range

Material Ledger Conversion in a Parallel Valuation Scenario

Hi All,
I'm working in a scenario where the Material Ledger is already active (without multiple currencies - in other words, with the local currency).
We would like to activate parallel valuation introducing a new currency type (group currency).
We have already read SAP Note 120380 - "Subsequent activation of multiple valuation approaches" where the preservation of ML historical data would involve a SAP intervention.
It is not clear which kind of activities SAP should do in order to preserve ML historical data, i.e. which kind of data should be involved in a potential ML conversion data process.
Any help will be GREATLY appreciated.
Regards, ALDO26X1

Hi Udo,
first of all thanks very much for your answer.
As described in the note 120380 we are in the following scenario:
The ML is already active (without multiple currencies - in other words, with the local currency)
B) You now require historical data: In this scenario, you must set a new currency key in the ML tables. The fields are filled as start
values with the posted transaction data in local currency (depending on the currency, either transferred or translated). This procedure is
very complicated and can be carried out on a project basis only. Contact SAP if you want to do this.
Unfortunately it is not clear which kind of impacts this procedure would have on the actual data and which are the new values introduced (only stock values in the new group currency for MM periods?).
Thanks for you cooperation.
Kind regards, ALDO26X1

Material price changes in parallel valuation

Hi experts,
i have an issue with Material Ledger. in our client organisation, ML is active and there are materials with price determination indicator set to 3 and with price control indicator 'S' in the material masters.
However over a period of time, the parallel valuation for most materials display different values. it is essentially due to lack of knowledge on the part of users and indiscrete use of CKMM for change of price control indicator from 3 to 2 and vice versa.
Now the business is serious to correct this situation. My questions in this regard are;
        a. what is the best source (table name) from down loading the material prices in different valuation views for a given period
        b. what precautions should we need to take to make changes (manual changes or mark and release of standard cost estimates) for these materials for all the valuation views to the prices ( i have gone through the SAP note 190707.
        c. what will be implications of making such changes on the financial balances of the organisation.
Please give me a comprehensive picture of these aspects as monetary value at stake is quite significant for the client.
Regards,
Rao

a. Use CKMLHD & CKMLCR
b. Make Price Determination Binding in OMX1, once you are done with your changes in CKMM
c. CKMM program tells you whats the financial impact...still you want to play safe...get a copy of production and try it out to see the impact

How to activate parallel valuation for SAPBanking Loan ?

Hi, I'd like to know how to activate parallel valuation for SAPBanking Loan.
When I deal general loan contract with bank, I have to customize FS-CML,
however any other treasury deals are handled in FSCM (e.g. secrities, money-market, foreign exchange and delivatives).
FS-CML doesn't have parallel valuation functions in its own.
So, I think I must customize both FS-CML and FSCM.
I'll wait for your kind answer. Thank you.
Yugo

Hi
It is not possible to activate in such case, u should not have any stock.
With regards
Pavan

Valuation area 001 posting issue

HI,
I have got this error message. System doesn't post to VA 001 prior to 20.05.2011. How can I resolve this?
Business Transaction Cat: Interest on Position Date: 01.05.2011 is before the initialization key date of valuation area 001
Message no. TPM_TRG461
Diagnosis
The business transaction ' Business Transaction Cat: Interest' with position date Position Date: 01.05.2011 should be changed or created. It occurs before the initialization key date of valuation area 001. The business transaction that posted the position value on the key date may no longer specify the correct value.
System Response
The business transaction is not transferred to valuation area 001 since it occurs before the initialization key date.
Procedure
If the position displays an incorrect book value based on the change made, you may be able to adjust the book value by manual valuation.

Hi,
Suppose I want to capture all the postings which were made starting from the issue date to Go-live date for a fixed income instrument say bond or fixed deposit then what should be the approach?
What if I keep initialization date as 01.01.2004 for all valuation areas and momentarily make update type not relevant for posting and complete all accrual/amortisation/valuation processes for the past postings and then revert back the changes made to update type. Will it help to capture entire life cycle?
Assumption is all the instruments have issue or purchase date after 01.01.2004.
Thanks
Edited by: Abhinav Sethi on Jun 1, 2011 10:40 AM
Edited by: Abhinav Sethi on Jun 1, 2011 10:41 AM

Error: Parallel depreciation area 31 is not posted

Hi experts,
Hi have customized 5 depreciation areas:
01 book depreciation in local currency
30 deferred balance sheet in local currency (for different useful life)
31 deferred balance sheet in group currency
32 book depreciation in group currency
60 derived depreciation area
I specified that 30 will get values from 01; 31 will get from 30; 32 will get from 01; plus one derived for 01 and 30 difference.
Then when I entered asset values in F-02 using transaction type 100, I get this error. Please help. Thank you.
Parallel depreciation area 31 is not posted
Message no. AA565
Diagnosis
The asset to be posted does not manage parallel depreciation area 31, or transaction type that you are using is limited to certain depreciation areas, and does not contain depreciation area 31. This is incorrect.
System Response
Posting is rejected.
Procedure
Check the asset and the transaction type.

Hi John.
In "Specify use of Parallel Currency" setup your currencies type/Valuation view.
In Currency Type/Valuation View, against area 31 maintain it for 31 (Group Currency Group Valuation) and against area 40 maintain 40 (Hard Currency). Transfer of Deprecation terms setup from Deprecation
area “01”. Setup like below.
Now go to below
Maintain your currency as per requirement and see if changes are updated as per above configuration (I mean valuation id is "01" for your depreciation area, try to execute your transaction and let me know if it’s working.
After that go to define depreciation area and see if your depreciation area setting for 01, 31 and 40 is same. Please try to check in Sandbox first.
Please mark it as correct if your problem resolves, so it would be useful for other as well.
Thanks and Regards,
Sudhir Harale

Initialization of Parallel Valuation Area

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