47520806 foreign currency translation

8/13/2019 47520806 Foreign Currency Translation

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Foreign Currency Translation

From help.sap.com documentation the following is stated on foreign currency translation

Currency Translation

Use

You can translate your account balances from local currency into group currency. The translation is performed in

accordance with FASB 52 (US GAAP or !AS.

"owe#er$ you can also perform the currency translation for other currency types.

Integration

!n General %edger Accounting$ you can only perform a currency translation as part of the foreign currency #aluation.

Prerequisites

& You ha#e performed a foreign currency #aluation and ha#e made all the settings for it in 'ustomiing (see Foreign

'urrency )aluation.

& You ha#e defined account determination for the translation in 'ustomiing for Financial Accounting (New).

To do this$ in the !mplementation Guide for Financial Accounting (New), choose General Ledger Accounting (New) &*

Periodic Processing &*Valuate

&* Foreign Currency Valuation &* Define Account Determination for Currency Translation.

+n the basis of the financial statement #ersion$ you can define different e,change rate types for each financial statement

item and thereby different e,change rates for the #aluation.

Features

The account balances are translated from local currency into group currency.

Activities

& To perform a currency translation$ from the AP !asy Access screen$ choose Accounting &* Financial Accounting "#

General ledger$Accounts %ecei&a'le$Accounts Paya'le "#

Periodic Processing &* 'losing &* )aluate &* Currency Translation of alances

& !n the general selection data$ enter a #aluation area (for translation into group currency$ for e,ample$ enter the

#aluation area with your group currency.

Example

- Attention This is /ust an e,ample for FAS0 12 represented in SAP. The functional3reporting currencies are FAS0 12

terms.

The functional currency does not ha#e to be always the local currency (currency type 45 in SAP.

General 'ustomiing

'ompany code3%ocal currency 6 US7

!mplementation Guide Financial accounting (8ew &* Financial accounting global settings (8ew &* global Parameters for

company code & Transaction code +0Y9

http://wiki.sdn.sap.com/wiki/display/ERPFI/Foreign+Currency+Translation

http://wiki.sdn.sap.com/wiki/display/ERPFI/Foreign+Currency+Translation



Additional %ocal 'urrencies

!mplementation Guide Financial Accounting (8ew &* Financial Accounting Global Settings (8ew &* %edgers &* %edger

&* 7efine 'urrencies of %eading ledger (Transaction code +022

+022 The currency type :5 is defined as source currency 6 2(Translation ta;ing first local currency as basis$

otherwise the currency type :5 is not posted in the first step with the FAG%<F'<)A%UAT!+8 (=emeasurement



>,change rate at time of posting in#oice

!mplementation Guide SAP 8et?ea#er &* General settings &* 'urrencies

(chec; all settings&* >nter >,change rates (Transaction code +05@

'reate customer in#oice #ia F05 & 7isplay posted in#oice #ia F05:



Customi!ing "or Foreign currency valuation

!mplementation Guide Financial Accounting (8ew &* General %edger Accounting (8ew &* Periodic Processing &*

)aluate

#e"ine valuation Areas

Prepare Automatic Postings "or Foreign Currency $aluation

Select Transaction B7F$ enter 'hart of Accounts



>,change rate at time of carrying out foreign currency #aluation +05@

To perform a foreign currency #aluation$ from the SAP >asy Access Screen$ choose Accounting &* Financial Accounting &*

General ledger3Accounts =ecei#able3Accounts Payalbe &* Periodic processing &* 'losing &* )aluate &* Foreign 'urrency

)aluation (8ew

Transaction FAG%<F'<)A% (Program FAG%<F'<)A%UAT!+8

)aluation using #aluation area which is assigned to currency type 45



>,ecute

'lic

; on Postings button



To create #aluation documents create postings must be tic;ed on$ if you e,ecute without create postings tic;ed$ this

means that program is run in test mode.

!f there are errors when posting$ a batch input session is created (transaction SC:1 7ocuments created #iew #ia F05:



Update run is sa#ed in table FAG%<0S0?<"!ST=Y

Customi!ing "or Foregin Currency Translation



#e"ine valuation area

)aluation area for currency type :5

#e"ine Account #etermination "or Currency Translation



!n Financial statement item 454:255 in fins. Statement #ersion 'AUS the following two accounts are present

4D5555 (=ec. Account for customers

4D55EE (Ad/ustment account for =ec. Account 4D5555$ posted by FAG%<F'<)A%UAT!+8

Accounts 4D5555 and 4D55EE should be defined together in the same financial statement item (ob1@ so

that FAG%<F'<T=A8S%AT!+8 posts the #aluation

for both accounts together in the same account (defined in )<FAG%<T5:5T=$ can be the same account 4D55EE.



Foreign currency translation

To perform a foreign currency translation $ from the SAP >asy Access Screen$ choose Accounting &* Financial Accounting

&*

General ledger3Accounts =ecei#able3Accounts Payalbe &* Periodic processing &* 'losing &* )aluate &* FAG%<F'<T=A8S

(Program FAG%<F'<T=A8S%AT!+8

>,ecute



'lic; on postings 0utton

Generate postings must be selected on initial screen of FAG%<F'<T=A8S for postings to be created Postings created #iew

#ia F05:



Update run is sa#ed in table FAG%<0S0?<"ST<0%

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47520806 foreign currency translation

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