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

Similar Messages

  • 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?
    tks

    Those 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

  • 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

  • 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?
    Thanks

    Hi ,
    While executing Foreign currency valuation, you can select the GL accounts for valuation. Try to not input these local currency GL's.
    Cheers,

  • What is Month End Procedure using in Business Area?

    Hi All,
    What is Month End Procedure using In Business Area?
    Thank you
    Ramakanth

    Hi,
    As my experience business area month end to check the profitability each b. areawise and all the month end adjustment entries should be enter business area wise. We can also check the clearning for one business area to anyother b.area.
    Regards,
    Pankaj

  • 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
    Paula

    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.

  • Valuation of Foreign Currency

    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
    rsr

    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.

  • What is month end data from mbew?

    I have a report that shows valuated stock qty and value that needs to be filtered based on Month End data. (MARD, MBEW).
    How to code this filter "Month End data"?

    MBEWH and MARV are validation points for this. look at MB5W or report J_B1BL07

  • Foreign currency valuation (new) for vendors and costumers open items

    Dear friends,
    Is there any option  that when i run the foreign currency valuation program (fagl_fc_val) for vendors and costumers open line items not to generate the reverse posting? I have read in the sap library that the reverse posting is optional and the when you pay the invoice the system works the difference out between the valuation and the exchange rate of the payment, but i can not find it in customizing.
    thanks in advance
    marc

    I also like to add that it is best to post reversal because normally the revaluation entry is posted on the last date of the month and the reversal entry is posted on the first day of the following month, which means that the following month will have a new entry on the last date independent of the entry made in the prior month.
    The idea of posting the valuation entry is to value the customer and vendor open items which were posted (let us say 3 months ago in a foreign currency) with the latest exchange rate as of the end of the month. This way these payables and receivables stand corrected.
    Is there any reason why you don't want to post the reversal entry?

  • 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

  • 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,
    Vinay

    Vinay,
    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

  • 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.com

    Hi,
    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

  • 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,
    Padmavathi

    Hi 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

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