Valuation of Foreign Currencies - Urgent
Hii all of u ..
Plss explain me how to valuate the foreign currencies for a key date and what r the requirements to do that..
Plsss let me know the detailed description about this..
It is very urgent to me plss help me.
I did configuration but i dont know whether it is correct or not..
Thanks & Regards.
Ramki
Ramkiveera at GMAIL
Dear Ramki,
Steps for FC Valuation.
1) Create valuation area
2) Link Chart of accounts/co code to valuation area.
3) Define exchange rate type for valuation of
Customers/Vendor balances
GL/bank balances
Execute transaction F.05
Assign points if found useful.
Thanks & Regards
Sanjay Marathe
Similar Messages
-
11i valuation of foreign currency expenses
Hi everyone,
The Polish Legal requirement of valuation of foreign currency expenses is to value of these expenses and exchange rate differences at currency cost layers (by historical rates), not at current exchange rate!
It works exactly the same as material transaction costing, that is foreign currency expeses are valued:
1) at FIFO (First in, First out),
2) at LIFO (Last in, First out),
3) at Average (average value).
Each company have to choose an method of valuation for his foreign currency expenses.
Example:
1) Foreign currency is USD, functional currency is PLN
2) current balance of USD account = 1,000USD, PLN account = 2,338.00PLN
where:
- 600USD x 2.35PLN/USD(ex rate) = 1410PLN
- 400USD x 2.32PLN/USD = 928PLN
2) The company applies FIFO costing for valuation his foreign currency expenses.
So, for example, 800USD payment has to be valued as following:
800USD = 600USD x 2.35PLN/USD + 200USD x 2.32PLN/USD
So, question:
Do You know any functionality in 11i in GL, AR, AP or CE module that allows us to value the foreign currency expenses like above?
Maybe, do You have any experience with it?
I will be grateful for any solutions.
Thanks a lot.Hi Ajay,
Kindly advise on how to do the config. We need to separate the AR and AP adjustment only for the unrealized Forex/Gain or Loss.
But looking at the screen in OB09, there's only 1 field for the bal.sheet adj.loss and another field for the bal.sheet adj.gain. -
Foreign Currency valuation on Foreign currency items posted in Local currency accounts
Hi Gurus,
I have accounts maintained in local currency and only balances in local currency is not checked. Some items are posted in foreign currency.
Now system is doing foreign currency valuation on foreign currency balance of this account. I dont want system to do that.
Now how to correct it. I can make balance zero of account and then mark that tick of only balances in local currency but still system will do foreign currency valuation on items posted.
Appreciate you help in solving this issue. How to handle it?
ThanksHi ,
While executing Foreign currency valuation, you can select the GL accounts for valuation. Try to not input these local currency GL's.
Cheers, -
Valuation Methods - foreign currency valuation
Hello
I am trying to understand the concept of different valuation methods. could you explain using examples please ?
Say for instance, a goods receipt is raised in USD for 100USD on 2 Jan 2009 and local currency is EUR. Exchange rate is 1EUR : 1,5USD. On 4 Jan 2009 invoice received at rate of 1EUR : 1,6USD.
What are the implications of the options lowest value principle, strict lowest value principle, always valuate and revalue for such a transaction?
tksThose are different ways of valuating your Foreign Currency Operations depending or the country regulations:
1- Lowest value principle means that the Valuation will be posted only if it is giving a negative result.
2- Strict lowest value principle will be post valuation only if two conditions happened:
A - The valuation is negative
B - The new valuation has a greater devaluation and/or a greater revaluation for credit entries than the previous valuation
3 - Always Valuate: No matter if it is possitive or negative, the valuation will be posted.
4 - Revalue only: The opposite of the first one, valuation is only posted when possitve.
5 -Reset Valuation Run: In this case open items are valuated at the acquisition price. This way the valuation difference is set to zero. This is useful to reset previous valuations
Regards,
Fede -
What is month end valuation in foreign currency?
what is month end valuation in foreign currency? by doing this what entries will be passing?
Hai venu my id is vijayamsrinivas yahoo.co.in
system is not accepting at the rate. so i have ginen space. my no:9739285428
thanks -
Hi Experts,
I have already performed the needed configuration prior to the execution of foreign currency valuation in FAGL_FC_VAL.
Exchange rate were also maintained in OB08.
I tried to simulate the report using key date 08/01/2014.
However, there are some documents that were revaluated while some are not. Pls advise why there are documents that are not valuated.
Pls advise also why there are line items where GL accounts are <missing>.
Also, does reversal of entries are automatically executed even if I did not indicate the reversal date?
Thanks.Hi Ajay,
Kindly advise on how to do the config. We need to separate the AR and AP adjustment only for the unrealized Forex/Gain or Loss.
But looking at the screen in OB09, there's only 1 field for the bal.sheet adj.loss and another field for the bal.sheet adj.gain. -
Automatic valuation of foreign currency
hai friends,
I know the manuval valuation through tc: f.05, pls advice how foreign currency valuated automatic, how to see it
thnx in advance
Regards
rsrHi Ajay,
Kindly advise on how to do the config. We need to separate the AR and AP adjustment only for the unrealized Forex/Gain or Loss.
But looking at the screen in OB09, there's only 1 field for the bal.sheet adj.loss and another field for the bal.sheet adj.gain. -
Valuation of foreign currency CML by TPM1
Hi Team,
We have a contract loans (CML) capitalized interest, the foreign currency rating for the areas of valuation for the calculation by TPM1 is doing excluding capitalized interest.
In FNSA works well.
Any of you can help me what else I can check?
Tks
PaulaHi Ajay,
Kindly advise on how to do the config. We need to separate the AR and AP adjustment only for the unrealized Forex/Gain or Loss.
But looking at the screen in OB09, there's only 1 field for the bal.sheet adj.loss and another field for the bal.sheet adj.gain. -
FOREIGN CURRENCY VALUATION QUERY
I am doing a customer invoice posting in USD for 1300$ (INR 46 Rupees) - Tcode F-22
If I do a customer incoming payment for a total amount of 1300 $ (INR 47 Rupees) - Tcode F-28 - Here the system is creating a line item automatically generated for Exchange gain and posting the gain amount directly to Exchange gain account.Here I need not do any valuation of foreign currency.
But in a scenario when the customer is doing a partial payment of 400$ (INR 47 rupees) - Tcode F-28 then system is not creating a line item for Exchange gain for the profit on 400$. When I do the valulation run through FAGL_FC_VAL then only system is crediting the exchange gain a/c.
Now if i want the exchange gain amount to automatically credited when I do the partial payment also, i.e., if I need the line item Exchange gain account to trigger automatically when I do the partial payment instead of running the FAGL_FC_VAL then is there any option for the same.
Regards,
PadmavathiHi JP,
While making Partial Payments also you can post forex gain/Loss but for that a little configuration is required. The IMG path is :-
Financial Accounting Global Settings (New)>Global parameters for Company code>Currencies>Indicate Currency Differences for partial payments.
Here against the document type, which you are using for making partial payments you have to tick that doc type and then the Forex gain/Loss gets posted even on partial payments.
Hope this help
Regards,
SAPFICO -
Foreign Currency valuation- balance sheet preparation valuation
Hi,
I have a doubt in foreign currency valuation.
When we tick Balance sheet preparation valuation ( in t-code F.05), no reverse postings are generating, eventhough i tick reverse postings. why is this happening?.
What is happening when we use Balance sheet preparation valuation in Foreign currency valuation?
Thanks,
VinayVinay,
Yes as explained earlier it converts balance sheet from one( Local) currency to Another (foreign) currency on a particular date.
For example if your balance sheet currency is EUR and your foreign currency is USD. It will convert EUR into USD on that particular date on all open items and post it to
the expense and revenue accounts for exchange rate differences from valuations. For payable and receivables accounts you must also define the financial statements adjustment accounts.
This is what it happens check your own thread
http://scn.sap.com/message/14258690#14258690
Best regards
Hrushikesh -
Relating to Foreign currency valuation
what are the general entries generated when we valuate the foreign currency.
when its gain / loss
i want the two entries so please provide me.
And how we update the Valuation fields of exchange rates every month.Hi
If there is a gain on exchange valuation it is credited to the GL account assigned for exchange gain/loss account and debited for loss occurred.
If the account is an open item managed account, the valuation can be adjusted against a balance sheet adjustment account. Hence if there is a loss, it should be like
Exchange loss Dr.
Bal Sheet Adj A/c. Cr.
and vice versa for a foreign exchange gain.
Regards -
Accounting Principle role in Foreign Currency Valuation
Dear Frns,
Why do we create an Accounting Principle in Foreign Currency Valuation and assign the same to the Ledger Group.
Regards,
VenkataHi Venkata,
The Assignment of Accounting Principle to Ledger Group is to ensure that the system knows to which ledger group the valuation is to be done. Since we can valuate the foreign currency documents to ledger specific posting as well.
Say there is one ledger pertaining to Leading ledger 0L and another non leading ledger L1, where 0L is pertains to US GAAP and L1 pertains to IFRS. So based on requirement, during the execution of FAGL_FC_VAL, you specify valuation area which will post to those areas.
Hope this is clear.
Regards,
Rithin -
Difference between Foreign Currency Valuation & Translation
What is the difference between Foreing Currecy Valuation (FAGL_FC_VAL) & Foreing Currency Translation (FAGL_FC_TRANS) ?
help.sap.comHi,
Foreign currency valuation FAGL_FC_VAL is a place where we valuate the foreign currencies to the particular local currency and post the differences to either exchange loss or gain.
Foreign currency translation helps us to transalte the forein currency to loacal currency with out calculating the gain or loss derived from exchange.
Parallel currency can be valuated in T-cd:FAGL_FC_Trans.
Thanks,
Shilpa.A
Edited by: ashilpa54 on Mar 22, 2011 9:37 AM -
hi,
Can anyone send me important configuration required for maintaining foreign currencies at Flat rate.
we always make forward contracts for exports with bank therfore our exchange rate is gets fix for a particular period.Dear Sayujya,
http://help.sap.com/saphelp_erp2005/helpdata/en/96/8b331243ce11d189ee0000e81ddfac/frameset.htm
Foreign Currency Valuation
In order to create your financial statements, you have to carry out a foreign currency valuation. This valuation covers the following accounts and items:
Foreign currency balance sheet accounts, that is, the G/L accounts that you run in foreign currency.
The balances of the G/L accounts in foreign currency are valuated.
Open items posted in foreign currency.
The line items in foreign currency are valuated.
You have the following options for the foreign currency valuation:
You can carry out the valuation in local currency, (company code currency), or a parallel currency (for example, group currency).
You can also use different valuation methods (for example, lowest value principle).
In addition to the foreign currency valuation, you can also carry out a currency translation in accordance with FASB 52 (US GAAP). You can thereby translate your account balances from local currency into group currency, for example.
Prerequisites
To carry out a foreign currency valuation, you must first make certain settings in Customizing. You make the settings in Customizing under Financial Accounting -> General Ledger Accounting/Accounts Receivable and Accounts Payable -> Business Transactions -> Closing -> Valuating -> Foreign Currency Valuation.
You must define the exchange rates. See Exchange Rates
You must also define a valuation method. Choose Define valuation methods.
You must also define the expense and revenue accounts for exchange rate differences from valuations. For payables and receivables accounts you must also define the financial statements adjustment accounts. To do this, choose Automatic postings for foreign currency valuations.
If you want to carry out a parallel valuation, you must also have defined a valuation area. Choose Define valuation areas.
The exchange rate differences from the parallel valuation are posted in this valuation area. If you carry out a parallel valuation with a different valuation method to the first valuation, you do not have to reverse the postings from the first valuation. This information is then available for subsequent closing operations, for example, Transferring and Sorting Receivables and Payables
Features
You can use report SAPF100 for the foreign currency valuation. This report carries out the following functions:
Valuation of foreign currency balance sheet accounts
Valuation of open items in foreign currencies
Saving the exchange rate differences determined from the valuation per document
Carrying out the adjustment postings required
The following topics describe how to carry out foreign currency valuation using the reports, and how to post valuation differences. You can also make this posting manually. From the SAP Easy Access screen, choose Accounting -> Financial accounting -> General ledger -> Document entry -> Valuate foreign currency.
Activities
To carry out a foreign currency valuation, from the SAP Easy Access screen, choose Accounting -> Financial accounting -> General ledger/Accounts receivable/Accounts payable -> Periodic processing -> Closing -> Valuate -> Foreign currency valuation.
Hope this will help.
Regards,
Naveen. -
F.05 foreign currency valuation issue
Hi experts,
can anyone suggest me
last 1 week onward i have been struggling one issue that is f.05 foreign currency valuation related
when the user post the transaction code f.05 is working fine but again its getting reversal automatically.the reverse check box also UN checked but its still its getting reversal
example:
when the user post the f.05 its successfully posted with document number 00277 but its again reversal 00278 its effected all Gl accounts like from
164302 to 164309 all accounts are automatically reversed .the client have only one company code
can any one suggest me its bit urgent
Thanks & regards
PradeepHello Pradeep,
if I understand correctly this is a Financials-related question - which could be posted to the
http://scn.sap.com/community/erp/financials Space, as Financials-related questions are usually gathered there.
Perhaps you can try to post this question there again.
Best regards,
Laszlo
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