Valuation - why accounts in LC???

Hi all,
why is the system valuating accounts maintained in local currency to which some posting in foreign currency were made? I thought only accounts in foreign currency are valuated...
Thanks,
Zbynek

Hi
Valuating accounts maintained in local currency to which some posting in foreign currency were made because
If Vendor or Customer Accounts contains Open Items in a Foreign Currency and the amounts of these Open Items were translated into Local Currency at the time they were entered using the current Exchange Rate.
The Exchange Rate is probably different at the time of Month End Closing and Open Items need to be Valuated again.
Foreign Currency Open Items and balance sheet accounts must be valuated on the basis of various business related and legal criteria.
You carry out the foreign currency valuation before you create the financial statements.
The valuation includes the following accounts and items.
1.Foreign Currency balance sheet accounts, that is G/L accounts that you run in foreign currency(the balances of the G/L accounts in foreign currency are valuated).
2.Open Items(Customers,Vendors,G/L accounts) posted in foreign currency(the line items are valuated).
Regards
Venkat
Edited by: Venkat Dara on Dec 7, 2008 6:17 PM

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GL account error Valuation Clearing Account for multiple valuations

Hi
I am trying to configure multiple valuations. There is one path:
IMG --> Controlling --> General Controlling --> Multiple Valuation Approaches/Transfer Prices --> Level of Detail --> Define Valuation Clearing Account
I created in chart of account 1000 (assigned to company code 1000) GL account 490000 with PL account tick in FS00 and i created cost element as 01. Further i entered trading partner 100001 which is assigned to company code as a 'company' and in the GL account in trading partner. Now when i entered the GL account in above path, it gave following error:
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please suggest me.
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Valuation and Account Determination...

Hello,
Can anyone help me to get some of the functional implementing questions on "Valuation and Account Determinationa" ....
Thanks
Priyanka

Hi,
In SAP every movement of goods is followed by one movement type and movement type trigged transaction event keys. G/L account assignment and G/L account assigned to transaction event key (OBYC). GR & IR will updated by movement of goods only. In Account Determination, respective G/L accounts assigned to your chart of account,relevant to business transactions keys(Example:BSX,PRD,FRE,GBB),Account modifier(Example:BSA,VBR) and Valaution Calsss.If all are assigned then you would not face any problems during your posting of GR,IR etc..........
Configuration of Automatic Account Determination with T.Code are as follow:
1.OMSK: valuation Class with Account category reference,
2.OMWM: Active Valuation Grouping Code,
3.OMWN: Active Movement type with G/L account,
4.OMWD: Active Valuation Area,
5.OMWB: Active Chart of account,Valuation Grouping Code,Account Grouping Code,Valuation Class and G/L acocounts
In OMWB or OBYC
Click TE key and enter Chart of account and then save the Roles 1st for
1.Debit/Credit
2.General modification
3.Valuation Modif
4.Vakuation class
And then enter respective critetia for that TE key and save.
If assignment(Chart of account,Valuation Grouping Code,Account Grouping Code,Valuation Class and G/L acocounts are correct and u would not face any problems in G/GI/IV.
For more check the links:
http://www.sap-img.com/materials/general-test-of-sap-mm-knowledge.htm
http://www.saptechies.com/category/financial-accounting/page/0
http://e-mory.blogspot.com/2007/06/sap-mm-and-fi-doc-number-verification.html
http://www.sap-img.com/materials/sap-mm-configuration-tips.htm
http://moryhanry.com/sapmmfidocverify.html
http://www.sapcustomization.com/document/fi_mm_integration.pdf
Regards,
Biju K

Valuation clearing account

Can anyone explain me what is the use of Valuation Clearing Account ? Transaction code 8KEN
Documentation in IMG says
In this step you specify profit and loss accounts for valuation
differences that arise in business transactions between group companies.
What kind of value differences there might be? Currency differences?

This is part of PCA (Profit center accounting). The system is asking you to setup accounts because you may have differences that arise from a cross-company deliveries between two profit center balance sheet accounts. Therefore, this can only be cleared using a valuation transfer account. This account is also required if you have differences in transfer pricing. Hope that helps.

OBYC Valuation and account assignment

Hi,
when I create a purchase order for a material, system doesn't propose automatically the g.l. account (Purchasing account, EIN) that has been set in OBYC.
I had a look in material master and the material has a valuation class assigned.
I checked in trx OBYC and there are Valuation modification, Valuation class, Debit and Credit assigned but g.l. account won't appear and the only way is to set manually the g.l. account
Best Regards

Hi sappione,
EIN is only when you are using Purchasing Account Management (I used this in France):
Information from SAP
Purchase account(EIN), purchase offsetting account (EKG), freight
purchase account (FRE)
These transactions are used only if Purchase Account Management is
active in the company code.
Note
Due to special legal requirements, this function was developed
specially for certain countries (Belgium, Spain, Portugal, France,
Italy, and Finland).
Before you use this function, check whether you need to use it in
your country.
Did you have customised this part?
SPRO > Materials Management > Valuation and Account Assignment > Account Determination > Account Determination Without Wizard > Purchase Account Management
But, I presume that you want to post the GR and the system is asking you for EIN.
It is because of the PO does not have assigned a G/L account into the item (check Account Assignment tab).
If you want that the G/L account can be determined in automatic, then, go to SPRO > Materials Management > Purchasing > Account Assignment > Maintain Account Assignment Categories.
There, make double click on "K - Cost center".
Afterwards, define a value in "Acct modification" i.e. VBR.
Then, create a PO and the G/L account will be determined in automatic.
Another possible solution is that you can define a valuation class by Material group (for the cases where you are asking for a Po without material codes). It can be done by SPRO > Materials Management > Purchasing > Material Master > Entry Aids for Items Without a Material Master.
There, you can define a valuation class for a Material group and once you create the PO, the G/L account will be determined according to this valuation class.
I hope this information can be useful.
Kind regards,
Sandra

Account modifier keys and valuation grouping account

Hi Gurs,
How Account modifier keys will create and it will be reflect in obyc settings..
what is valuation grouping account and how it will reflected in obyc settings.
Thanks in advance
suresh

Hi,
How Account modifier keys will create and it will be reflect in obyc settings.. >>>>>>>>>
Account Modification
Key which has a different meaning depending on the procedure. It is used to differentiate account determination. The key's meaning is predefined in the SAP system and cannot be changed.
You can maintain the account mdifier in OMWN transaction agaist the movement type and then you can use it in OBYC for transaction ket GBB for ofset entries.
You can also maitain in account assignment category also .
e.g. for account assignment category you have VBR account modifier and you can change and create your own ZZZ type and use in OBYC.
what is valuation grouping account and how it will reflected in obyc settings. >>>>>>>>>>
Indicates a grouping of valuation areas.
You can maintain it in OMWD transaction to group different valuation area.
Within a chart of accounts, you can use the valuation grouping code
1. to define individual account determination for certain valuation areas ( company codes or plants)
2. to define common account determination for several valuation areas (company codes or plants)
Regards,
Shailesh

Question about why accounting document had not been generated

Hi :
When I am doing goods movement 501 or 561 for material A,it had not generated the accounting document, I don't why I had checked obyc and this material, account tab had been maintained with correct valuation class,help.

HI,
are you doing the transaction wiht the Free Issue Material. Some time clients gives material along with the Sales Order, in such casess accounting document will not generate. Please check with the MM Team, there they have a option to for the Movement Types not to post Accounting Document.
Regards

CURRENCY VALUATION - BANK ACCOUNTS

I wanted to know how you manage currency valuation with regards to daily reporting of Foreign Currency Bank Accounts in Local Currency
I am on Version 4.6C and do valuations monthly so that we are able to value our Foreign Currency Bank Accounts at the prevailing exchange rates as at the end of the respective reporting months.
When I look at the retail Banks, they manage various accounts for their Clients in Foreign Currency and am sure that whenever Clients call for their balances in Local Currency they are able to be read from the system at the rate prevailing as at the date of inquiry.
Is it possible that currency valuations are done daily immediately after updating the dayu2019s exchange rate?
Is it also possible that there exists a particular config set up that enables the translation in local currency without necessarily making the requisite valuation postings (unrealized gains/losses in currency translations)?

For banks, translating daily is necessary as they need to give those numbers to customers. For corporations, I don't see a need to valuate them daily as you don't need to report numbers daily. Financial statements are prepared at least in monthly intervals, I guess; and you only need to valuate before you draw financial statements. I have never come across a configuration that enables translation/valuation without necessarily making postings. I don't think there is one!

FOREIGN CURRENCY VALUATION ADJUSTEMENT ACCOUNTS.

HI,EXPERTS
I WANT TO CALCULATE FOREIGN CURRENCY VALUATIONS FOR VENDORS AND CUSTOMERS OPEN ITEMS,
SO I HAVE TO CREATE BALANCE SHEET ADJUSTMENT ACCOUNT IN FS00..
IS IT RECONCILIATION ACCOUNT OR NOT? HOW CAN I THIS ACCOUNT ACTIVATE IN CUSTOMIZATION?
DO I HAVE TO CREATE 2 ADJUSTMENT ACCOUNTS ,1 FOR VENDOR PAYABLES AND ANOTHER FOR CUSTOMER
RECIEVABLES?
REGARDS,
THANKS IN ADVANCE.

Hi,
separate G/l is useful of reporting so use the below settings
Customer Reconcilation account     - change if vendor reco account
Loss G/L     -For customer & vendor same G/L
Gain G/L     - For customer & vendor same G/L
valuation G/L -1     - For customer & vendor same G/L
valuation G/L -2     - For customer & vendor same G/L
Debtors Ex.Rate Diff Adj. A/c     - use vendor ex. rate diff a/c.
assign points if hep full for you.
Regards
Aditya

Valuation on Account Assignment 'A'

Dear All,
We are into Implementation of SAP ECC 6.0 for three company codes.
The problem is when I create account assigned purchase order "Q" with valuated material type for the company code 'A', the system posts the following entries during GR
Inventory Account Dr.
GR/IR Clg account Cr.
Whereas if I try to do the same in the other company companies 'B' & 'C', the system posts to a different account
Consumption account Dr
GR/IR Clg Account Cr.
The material type is common for all the three company codes and the value update and quantity update is also set for all the three code's plants.
Is there any other settings at plant level for this.
Please help.
Regards,
S.Suresh

HI ,
First Thing , i want to ask is what is the Valution level,whether it is company code or Plant.
For your Description, i think it should be at plant level.
SO know your Material Will be maintained you valution data at the Plant level.
So the main key that effects is the Valuation class in the Account I tab against all the Plants (og different company codes is same or not )
if it same.
then we have to go for the next setting is the Account assignment Category,
Are you using the same account Assigment category?
if any of the above changes
Valuation calss or Account assignment Category then definity for sure the posting in the GRN will
effect.
And other think also is the valuation modifier .
it is used to group your Valuation Areas (plants) in it maintained in SPRO.
if it is one of the factors in your account maintance (OBYC)
then aslo the Account postings will be diferent for Diiferent Plants at a different company code level.
Check the above Setting
hope so it helps
Regards
Anjanna

Why account assignment is not deleted when push "Order as Direct Material"?

Hi Gurus,
I have a problem with shopping carts (SC) of stock items:
1.- I add 5 items.
2.- I push "Order as Direct Material" button for 3 items only.
3.- I push "Hold" button to set SC with held status.
4.- I modify the SC and push "Order as Direct Material" button for 2 items missing.
5.- I order the SC.
One of the effects that it has the "Order as Direct Material" button is that it deletes the account assignment because the items will use to create a PO stock.
But for the last 2 items (number 4.-) the account assignment is not deleted.
This is causing that the PO's have error: "Invalid tax code".
Somebody can say to me why is not deleting the account assignment for items previously hold?
My systems are:
SRM 4.0 (SRM_SERVER 500) level 8
R/3 4.7 (SAP_APPL 470) level 24

Juan Alonso Valenzuela Rodríguez wrote:
> Hi Gurus,
>
> I have a problem with shopping carts (SC) of stock items:
>
> 1.- I add 5 items. -- O.K - Assumed that you have 5 items added
> 2.- I push "Order as Direct Material" button for 3 items only.O.K.You selected as ORDER as direct only for 3 rd item
> 3.- I push "Hold" button to set SC with held status.- O.K. now HOLD the shopping cart
> 4.- I modify the SC and push "Order as Direct Material" button for 2 items missing.- Now you went to 2 nd items and ORDER as direct
> 5.- I order the SC.but this 2 nd item account data was not removed though you selected as ORDER as direct-
check item data what is stored here DP ? if account assignment not cleared it could be a bug. but you need to convince them to get a correction note.
>
> One of the effects that it has the "Order as Direct Material" button is that it deletes the account assignment because the items will use to create a PO stock.
>
> But for the last 2 items (number 4.-) the account assignment is not deleted.
>
> This is causing that the PO's have error: "Invalid tax code".
>
> Somebody can say to me why is not deleting the account assignment for items previously hold?
>
> My systems are:
> SRM 4.0 (SRM_SERVER 500) level 8
> R/3 4.7 (SAP_APPL 470) level 24

Non Valuated material accounting posting

Hi friends ,
While reading the help of NON Valuated material ...I come across the below statement.
"The stock of a given material is only managed on a quantity basis, an account assignment must be defined in the purchase order. However, this account assignment does not result in the goods receipt being posted to consumption/usage. Instead, it results in the costs being debited to the account assignment object."
From this statement , my expectation was ...
In case of VALUATED MATERIAL (like spares etc) and Account assignment K in PO , system will automatically determine the GL from OBYC against GBB / VBR keys , but here at my end system is not picking this GL in PO line item and asking me to enter the GL along with Cost center and other account assignment details.
Similar details like GL and account assignment is asked by system for NON Valuated material also.
In both cases , entered GL is getting debitted ... therefore looking for the perfect explaintaion of SAP HELP statement given above.
Regards
Shrey

Ok ...
Now my understanding is like
In case of VALUATED MATERIAL with Account Assiged PO (say K) , system will pick the GL automatically from GBB / VBR and in case of NON VALUATED MATERIAL with Account Assigned PO (Say K) , system WILL NOT pick any GL and You have enter it Manually in PO line detail (Account Assignment Tab).
AND IN BOTH CASES GL in PO Line item ( Account Assignment) will get debitted and GR/IR gets Credited at the time of MIGO.
The Only advantage of using NON VALUATED material is ...... system will also update Qty and which can issue to any cost center in future ( to track Qty ) ........
BUT IN CASE I remove "QTY UPDATE" tick from NON-VALUATED Material type ( for my valuation Area) , then I am expecting system will not update any Qty and in THAT CASE BOTH material type (VALUATED AND NON VALUATED) will behave in similar manner , except (automatic) GL determination at PO level.
is this right ?
Regards
Shrey

Export valuation and accounting

Hi,
I have following pricing elements in my export pricing.
1. FOB price, 2.Insurance 3.Freight 4. CIF (Cost Insurance and Freight)
CIF price= FOB price + Insurance + Freight
Say if the CIF price is $1000, FOB $900, Insurance $10 & freight $90.
Assuming that M rate= 40, I will have to account as follows.
Dr Customer 40000 (1000*40)
Cr Revenue 36000 (900*40)
Cr Insurance clearing 410 (10*41) (rate at customs notified rate)
Cr Freight clearing 3780 (90*42) (rate at which transporter paid
to shipping company)
Total of debits 40000
Total of credits 40190
Dr Difference 190 (to be adjusted in revenue as a separate
line item)
The document currency is USD. As per the statutory procedure, I have to
account CIF value at exchange rate M, insurance at customs defined
exchange rate for that month and Freight at the rate the transporter
paid to the shipping company. The customs defined rate and the exchange
rate for freight will not be equal to the M rate as in the case of
above.
Due to the above procedure, there will always be mismatch between
credits and Debits in company code currency (Rs 190 in above example)
because of different exchange rates followed for different pricing
elements.
SAP should post the difference Rs 190 dynamically into a revenue GL
account as a separate line item in the accounting document. This
difference will be known only after release to accounting and cannot be
manually calculated during order processing
Can SAP address this? Pls provide a solution.
Regards

Hi,
In SAP every movement of goods is followed by one movement type and movement type trigged transaction event keys. G/L account assignment and G/L account assigned to transaction event key (OBYC). GR & IR will updated by movement of goods only. In Account Determination, respective G/L accounts assigned to your chart of account,relevant to business transactions keys(Example:BSX,PRD,FRE,GBB),Account modifier(Example:BSA,VBR) and Valaution Calsss.If all are assigned then you would not face any problems during your posting of GR,IR etc..........
Configuration of Automatic Account Determination with T.Code are as follow:
1.OMSK: valuation Class with Account category reference,
2.OMWM: Active Valuation Grouping Code,
3.OMWN: Active Movement type with G/L account,
4.OMWD: Active Valuation Area,
5.OMWB: Active Chart of account,Valuation Grouping Code,Account Grouping Code,Valuation Class and G/L acocounts
In OMWB or OBYC
Click TE key and enter Chart of account and then save the Roles 1st for
1.Debit/Credit
2.General modification
3.Valuation Modif
4.Vakuation class
And then enter respective critetia for that TE key and save.
If assignment(Chart of account,Valuation Grouping Code,Account Grouping Code,Valuation Class and G/L acocounts are correct and u would not face any problems in G/GI/IV.
For more check the links:
http://www.sap-img.com/materials/general-test-of-sap-mm-knowledge.htm
http://www.saptechies.com/category/financial-accounting/page/0
http://e-mory.blogspot.com/2007/06/sap-mm-and-fi-doc-number-verification.html
http://www.sap-img.com/materials/sap-mm-configuration-tips.htm
http://moryhanry.com/sapmmfidocverify.html
http://www.sapcustomization.com/document/fi_mm_integration.pdf
Regards,
Biju K

New valuvation group for existing valuation area - Account Determination

Hi Experts,
Existing Scenario :
-> Plant level valuvation is been maintained
-> Valuvation group code 0001 is assigned for all the Valuvation Area until now.
Req :
I need to set new account determination for a particular material type for the existing valuvation area.
How to achieve the same ?
1.Do I need to create a new valuvation groupcode and assign the same for the existing valuvation area ?
Your inputs will be helpful.
Regards
Prasath

Hi
For new Material type account determination there is no requiremnt of gioing for anew valuation grouping code.
You go for a valuation grouping code only hwen you need to trigger differnt g/L accounts based on the PLant combination.
YOu can go ahead with the existing account determination by maintaining the new account category reference & valuation classes to the new material type.
Hope this solves your query
Thanks & Regards
Kishore

Chart of accounts in valuation and account assignment

Hello,
Pls, someone advise, I want to make valuation at plant level, but I want in transaction obyc (configure automatic posting) to have option of entering valuation at plant, meaning that I want to enter plant, valuation class, than number of accounts (debit, credit).
And want to have option to enter it for every plant.
Pls, can it and how it can be done?
thanks in advance

<b><i>"but the problem is that I want to have different account for every plant, not only for valuation class but also for plant and valuation class."</i></b>
Under the same chart of account you can assign different G/L account for different plant (Valuation area) using the valuation grouping code (VGC).
The baseline for account determination is
Chart of account --> Tran Event Key --> Val Group code --> A/c modifier key --> Valuation class -> G/L account
- It will identify the chart of account based on plant which is used in the transaction. (Plant is assigned to company code and company code uses chart of account)
- Mvt type will identify the tran event key
- Valuation grouping code will be identified by plant (Plant = val area (if valuation level is at plant level) and valuation area is grouped in T-code OMWD)
- A/c modifier key will be identified from mvt type (for tran event key GBB, PRD, KON)
- Valuation class is identified from material or material group.
Based on the above combination G/L account will be identified for the transaction.
Hope this will help.
Regards,
Arif Mansuri
Thanks for rewarding point if answer is helpful.

Valuation - why accounts in LC???

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