General Ledger

F.05 - Foreign Currency Valuation

TOPIC OBJECTIVES
Buine Proce Procedure O!er!ie"
Bac#ground
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 !" accounts that you run in
foreign currency. The $alance of the !" accounts in foreign currency are
valuated.
#. $pen items posted in foreign currency. The line ite% in foreign currency
are valuated.
%ou have the following options for the foreign currency valuation:
a& %ou can carry out the valuation in local currency, 'company code
currency&,
b& %ou can valuate in parallel currency 'for example, group currency&.
%ou 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 ".
Scenario
(efore year-end closing you need to perform a foreign currency valuation for ",
customer and vendor open items. To perform valuation of balances in " 'for "
accounts with no open item management& your have to change your selection to
activate the related fields.
Prere&uiite
", )ustomer and *endor +aster, the accounting transactions posted in foreign
currencies 'different than company code currency&. ,efined in )ustomi-ing "
accounts for valuation postings.
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5or6 Instruction
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P)OCE*+),L STEPS
-enu Pat' 2ccounting Financial 2ccounting eneral "edger
3eriodic 3rocessing )losing *aluate F../ - Foreign
)urrency *aluation
Tranaction Code F../
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C,SE FLO. *I,G),-
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3erform the following steps of how to Valuate t'e *ocu%ent Poted In Foreign
Currency using the information below:
+enu path: 2ccounting Financial 2ccounting eneral "edger 3eriodic 3rocessing
)losing *aluate F../ - Foreign )urrency *aluation
S,P Eay ,cce
/. ,ouble clic6 on F../ - Foreign )urrency *aluation.
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General Ledger
Foreign Currency Valuati on
0. 8pdate the following re&uired and optional fields:
Field 1a%e *ecri 2ti on Value
)ompany code )ompany code E3a%2le( /#..
9valuation :ey ,ate :ey date for the foreign
currency valuation.
E3a%2le( 71.;.#
*aluation method 2 uni<ue 6ey for determining a
foreign currency valuation
method. This 6ey can be valid
for cross-chart of accounts.
E3a%2le( 9*=
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Field 1a%e *ecri 2ti on Value
*aluation area 8sing valuation areas instead
of >*aluation in )urr type?
simplifies the process ie
instead of running Forex
valuation 7 times for each
currency type, we only run it
one time for 7 currency type
simultaneously.
For 12(I) there?s defined the
valuation area >12@. 12
includes '1& )ompany code
currency '#& roup currency
roup valuation '7& roup
currency 3rofit )enter valuation
E3a%2le( 12
(atch input session
name
)ode identifying the batch
session that is created
E3a%2le( F)*.4#..#1
,ocument date ,ate the transaction occurred E3a%2le( 71.;.#
3osting date ,ate that the business
transaction occurred
E3a%2le( 71.;.#
3osting period Fiscal month when the
transaction posts to the
eneral "edger
E3a%2le( ;
=eversal posting date ,ate when you want to post a
reverse. Aormally the 1
st
day of
next month
E3a%2le( .1.B.#
=everse post. period 3osting period for reversal E3a%2le( .B
4. Aow you need to select the accounts you want to valuate. )lic6 Ctab buttonD
Selection .
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General Ledger
Foreign Currency Valuati on
5. )lic6 Valuate !endor o2en ite% .
5. )lic6 Valuate cuto%er o2en ite% (utton .
%ou can select only particular vendor ! customer accounts to be valuated. If
you leave the selection fields empty 'li6e in our example&, all the accounts will
be selected for valuation.
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6. )lic6 E3ecute (utton to perform valuation. Aote that the system does not create
the postings immediately but creates a batch input session instead.
Foreign Currency Valuati on
1ote( 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; theyre
stored in a batch input session!
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General Ledger
Foreign Currency Valuati on
7. 3ress Bac# (utton .
8. To post the valuation, you need to process the (atch Input 1ession that you?ve Eust
created. %ou can open another 123 session. From the main menu choose System
Services Batch input Sessions
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S,P Eay ,cce
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Batc' In2ut( Seion O!er!i e"
9. 1elect the session you want to process. '1elect the row which contains your (atch
input session, e.g. F)*.4#..#1&
/0 . )lic6 Proce (utton .
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Proce Seion FCV060000/
// . )lic6 Cradio buttonD Bac#ground .
/0 . )lic6 Proce (utton to begin posting of documents.
/4 . $nce the session was processed, you need to chec6 the results. To analy-e your
batch input session, follow the menu path:
From the main menu choose System Services Batch input Sessions
S,P Eay ,cce
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Batc' In2ut( Seion O!er!i e"
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/5 . 1elect =ow which contains your (atch input session F)*.4#..#1
/5 . )lic6 ,nalyi (utton . The system will display the details regarding the
session that was processed:
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,nalyi o: Seion FCV060000/
/6 . 3ress Bac# (utton .
/7 . 2s a result of valuation some accounting documents were posted. To display them
use the transaction FB04 ',ocument ,isplay&:
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S,P Eay ,cce
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*i2lay *ocu%ent( Initi al Screen
/8 . 8pdate the following re&uired and optional fields:
Field 1a%e *ecri 2ti on Value
,ocument number Aumber of the 123 =!7
document that is internally
assigned by 123 =!7 when
certain transactions are
completed
E3a%2le( 1...1#/.
)ompany code 9nter here company code
number
E3a%2le( /#..
Fiscal year Fiscal year number E3a%2le( #..#
/9 . )lic6 Enter (utton to confirm your entries.
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*i2lay *ocu%ent( O!er!i e"
1ote( The above document shows "ero balance because is displayed in
#ocument currency.
00 . To display your document in local currency )lic6 *i2lay currency (utton
.
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*i2lay currency :or docu%ent
0/ . )lic6 Enter (utton.
*i2lay *ocu%ent( O!er!i e"
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00 . 3ress Bac# (utton .
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