foreign currency valuation
TRANSCRIPT
F.05 -
Functionality
In order to create your financial statements, you have to carry out a foreign currency valuation. This process valuates all transactions posted in foreign currency per company code and parallel currency transactions. To perform the valuation you should use an exchange rate for the end of the month. This valuation covers the following accounts and items:
1. Foreign currency balance sheet accounts - the G/L accounts that you run in foreign currency. The balances of the G/L accounts in foreign currency are valuated.
2. Open items posted in foreign currency. The line items in foreign currency are valuated.
You have the following options for the foreign currency valuation:a) You can carry out the valuation in local currency, (company code
currency), b) You can valuate in parallel currency (for example, group currency).
You can also use different valuation methods (for example, lowest value principle). The posting of valuation is done by the batch input session. It is recommended that you run each valuation separately, so e.g. you will create a separated batch input for customer open items, then another one for vendors and another one for GL.
Scenario
Before year-end closing you need to perform a foreign currency valuation for GL, customer and vendor open items. To perform valuation of balances in GL (for GL accounts with no open item management) your have to change your selection to activate the related fields.
Requirements
GL, Customer and Vendor Master, the accounting transactions posted in foreign currencies (different than company code currency). Defined in Customizing GL accounts for valuation postings.
Menu Path Accounting Financial Accounting General Ledger Periodic Processing Closing Valuate F.05 - Foreign Currency Valuation
Transaction Code F.05
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1. Double click on F.05 - Foreign Currency Valuation.
Foreign Currency Valuation
2. Update the following fields:
Field Name Field Description ValuesCompany code Company code Example: 5200
Evaluation Key Date Key date for the foreign currency valuation.
Example: 310702
Valuation method A unique key for determining a foreign currency valuation method. This key can be valid for cross-chart of accounts.
Example: EVR
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Field Name Field Description ValuesValuation area Using valuation areas instead of
“Valuation in Curr type’ simplifies the process ie instead of running Forex valuation 3 times for each currency type, we only run it one time for 3 currency type simultaneously.For SABIC there’s defined the valuation area “SA”. SA includes (1) Company code currency (2) Group currency Group valuation (3) Group currency Profit Center valuation
Example: SA
Batch input session name
Code identifying the batch session that is created
Example: FCV0620021
Document date Date the transaction occurred Example: 310702
Posting date Date that the business transaction occurred
Example: 310702
Posting period Fiscal month when the transaction posts to the General Ledger
Example: 7
Reversal posting date Date when you want to post a reverse. Normally the 1st day of next month
Example: 010802
Reverse post. period Posting period for reversal Example: 08
3. Now you need to select the accounts you want to valuate. Click <tab button> Selections .
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Foreign Currency Valuation
4. Click Valuate vendor open items .
5. Click Valuate customer open items Button .
You can select only particular vendor / customer accounts to be valuated. If you leave the selection fields empty (like in our example), all the accounts will be selected for valuation.
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6. Click Execute Button to perform valuation. Note that the system does not create the postings immediately but creates a batch input session instead.
Foreign Currency Valuation
Note: The system displayed a report presenting valuated vendor and customer open items. Press POSTINGS Button to display the accounting documents that were created. These documents have not been posted yet; they’re stored in a batch input session:
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Foreign Currency Valuation
7. Click Back Button .
8. To post the valuation, you need to process the Batch Input Session that you’ve just created. You can open another SAP session. From the main menu choose System Services Batch input Sessions
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SAP Easy Access
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Batch Input: Session Overview
9. Select the session you want to process. (Select the row which contains your Batch input session, e.g. FCV0620021)
10. Click Process Button .
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Process Session FCV0620021
11. Click <radio button> Background .
12. Click Process Button to begin posting of documents.
13. Once the session was processed, you need to check the results. To analyze your batch input session, follow the menu path:
From the main menu choose System Services Batch input Sessions
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SAP Easy Access
Batch Input: Session Overview
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14. Select Row which contains your Batch input session FCV0620021
15. Click Analysis Button . The system will display the details regarding the session that was processed:
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Analysis of Session FCV0620021
16. Click Back Button .
17. As a result of valuation some accounting documents were posted. To display them use the transaction FB03 (Document Display):
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SAP Easy Access
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Display Document: Initial Screen
18. Update the following fields:
Field Name Field Description ValuesDocument number Number of the SAP R/3
document that is internally assigned by SAP R/3 when certain transactions are completed
Example: 10001250
Company code Enter here company code number
Example: 5200
Fiscal year Fiscal year number Example: 2002
19. Click Enter Button to confirm your entries.
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Display Document: Overview
Note: The above document shows zero balance because is displayed in Document currency.
20. To display your document in local currency Click Display currency Button .
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21. Click Enter Button.
Display Document: Overview
22. Click Back Button .
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