mySAP ERP The New GL

Closing Programs

New Programs in the Closing Operations

The closing operations in FI affect
The foreign currency valuation of open items and monthly
balances
(SAPF100> FAGL_FC_VALUATION),
Translation (FAGL_FC_TRANSLATION)
Grouping (SAPF101 > FAGL_CL_REGROUP),
Other valuations (old: SAPF107V, SAPF103 and SAPF104)
WE/RE accounts clearing (old: RFWERE00).
Balance carry-over (old: SAPFVGTR)

Balance sheet and P&L adjustment (SAPF180 and SAPF181) are

removed.

The valuations are generally made via a valuation area.

SAP AG 2003, Title of Presentation, Speaker Name / 2

The Valuation Area

Assignment in Customizing:
Valuation Area
1

>
:

Accounting Principle >

1

Ledger Group

The valuations are performed per valuation area.

The valuation area controls the account determination and the
valuation method (only FAGL_FC_VALUATION)
and thus the determination of the exchange rate type.

The Accounting Principle determines the Ledger Group. This

concerns FAGL_FC_VALUATION, FAGL_FC_TRANSLATION,
FAGL_CL_REGROUP and SAPF107V.

SAP AG 2003, Title of Presentation, Speaker Name / 3

Open Items Valuations

The most important changes are:

The history is recorded in table FAGL_BSBW_HISTRY
No more updates to valuated items (BDIFF)
Always: Adjustment posting and reversal posting
No consideration of RDIFF at the time of the valuation

Default: Remeasurement procedure according to FASB52 / IAS21.

(refer to the example on the next slide)
Transfer of the valuation differences to CO (always when valuation
accounts are created as a cost element)

SAP AG 2003, Title of Presentation, Speaker Name / 4

Remeasurement
Example:

LC1 = EUR

LC2 = USD

Posting to be evaluated:
Amount TC Amount LC1 Amount LC2
100 CAD

160 EUR

120 USD

Valuation for the exchange rate

ERD amount TC
0

(Posting exchange rate: 1 EUR = 0.75 USD)

1 CAD -> 1.50 EUR

1 EUR -> 1.20 USD

TYPE M
TYPE B

on
i
s
er nt)
v
ERD amount LC1 ERD amount LC2
on eme
c
ct su r
e
-10
-12
r
Di mea
(re

Comment:
The calculation (TYPE B) of the valuation amount LC2 (-12) is not carried out from
the conversion of the posting amount LC1 (160 EUR),
That would be:
160 x 1.20 = 192
192 120 = + 72 (calculated exchange rate difference)

but from the direct conversion of the valuation amount LC1 (-10 x 1.20) to the
valuation amount LC2 (-12). Also TYPE B.

SAP AG 2003, Title of Presentation, Speaker Name / 5

Is Remeasurement Always Used?

Example: Countries with high inflation

During posting, LC2 and LC3 are usually both determined by
conversion from LC1.
No remeasurement, if it is specified in Customizing (OB22) that LC2
or LC3 is to be converted from the transaction currency during the
posting ( TC: 100 CAD)
(switch value 1, relevant for countries with high inflation because
TC1 is subject to a strong influence from inflation).

Time of the valuation:

If switch value 1 is set, then no update to ERD-LC2 or ERD-LC3,
because the conversion from the ERD-LC1 posting amount would
not be meaningful.
(Refer to the example on the next slide).

SAP AG 2003, Title of Presentation, Speaker Name / 6

No Remeasurement, if...
Example:

LC1 = EUR

LC2 = USD

Posting to be evaluated:
Amount TC

Amount LC1

Amount LC2

100 CAD

160 EUR

120 USD

(Exchange rate: 1 EUR = 0.75 USD)

Valuation for the exchange rate 1 CAD -> 1.50 EUR TYPE M
1 EUR -> 1.20 USD TYPE B
ERD amount TC
0

ERD amount LC1

-10

nt
e
em
r
ERD amount LC2 asu
e
no entry rem
No

Comment:
ERD-LC1 (-10) is determined normally, ERD-LC2 is not determined, because LC1
for example, represents a high inflation currency, which would not be very
meaningful for the determination of ERD-LC2.
In this case an extra run is conceivable, which specifically determines ERD- LC2
from the comparison of postingTC und - LC2 and the valuation exchange rate
CAD USD.

SAP AG 2003, Title of Presentation, Speaker Name / 7

Balance Valuation
Initial situation: 2 documents posted in foreign currency USD:
Document 1:

Document 2:

FC= Foreign currency, TC = Transaction currency

Post.date 01/01/2005 , Posting exchange rate: 0.8

Account

TC :USD

LC: EUR

Segment

Bank clearing

400 -

320 -

S1

Bank

400

320

S1

Post.date 02/01/2003, posting exchange rate: 1.1

Bank clearing

600 -

660 -

S2

Bank

600

660

S2

Bank

Account balance after posting

Bank clearing

400 / 320 S1
600 / 660 S2

400- / 320- S1
600- / 660- S2

Different segment values (company code oriented or

segment oriented value determination):
Balance valuation account bank for 03/31/2005, valuation rate 0.9
Valuation per account: TC 1000
Valuation amount:
Valuation difference:
>Segment distribution at the ratio 400 : 600 >
Valuation difference S1:
Valuation difference S2:

Preferred

SAP AG 2003, Title of Presentation, Speaker Name / 8

LC 980
900
- 80

Valuation per segment

Segment 1
TC 400
Valuation amount:
Valuation difference S1:

- 32
- 48

Segment 2
TC 600
Valuation amount:
Valuation difference S2:

no

u
s
t

o
p
p

d
e
rt LC 320

360
+ 40

LC 660
540
- 120

- 80

Translation (FASB52/IAS21)
FAGL_FC_TRANSLATION
Evaluation of balance sheet/P&L areas (example: reporting currency TC2 USD)
1. Translation happens at totals level (possible for all types of G/L accounts)
2. Account determination happens via valuation area and financial statement version
Example:
Orig. document
Remeasurement
Account balances

TC1 EUR
160
-10
________
150

TC2 USD
120
-12
________
108

Translation: What is the value of LC1 (EUR) in reporting currency (USD) per key date?

(LC1 evaluated with key data exchange rate 1 EUR = 1.20 USD)

(150 X 1.20
Required adjustment posting

= 180) value to be achieved

+ 72 to get key date value

Asset accounts are evaluated with the historical exchange rate, P&L accounts are evaluated
with the weighted exchange rate (corresponding exchange rate type in table TCURR must be
maintained).

SAP AG 2003, Title of Presentation, Speaker Name / 9

Regroup Customers with Credit Balances etc...

Initial situation:
Receivables
_______________________
50 S1
50 S2
100 - S3

Transfer posting customer with credit balance

a) Company code view/without segment examination
Receivables

Correction

Segment reports not possible

Payables

100

100-

b) Company code view / with segment examination

Receivables
50

Correction

S1

50- S1
50-

100

Payables

S2

50

S2
100-

S3

S3

Preferred solution!
Company code determines the
depiction of accounts.
Positive payables (50, S2)
are accepted

c) Without company code view/segment examination only

Receivables Correction

Payables

50

S1

50- S1

100

S3

100-

SAP AG 2003, Title of Presentation, Speaker Name / 10

S3

Total payables (150-)

do not correspond to the
company code view (100-)