
Explore how SAP handles parallel currencies, including direct and indirect exchange rates, company code currency, and group currency translations using transactional and source currencies.
Maintain monthly opening and closing exchange rates, define closing rate types, and perform foreign currency valuation to post unrealized gains and losses in the system.
Learn to create a closing exchange rate tape in SAP, define a new exchange rate type, set translation ratios for currencies, and maintain the closing rates across months.
Demonstrates how SAP maintains foreign currency valuation through account determination, SPRO configuration, and postings of realized and unrealized gains or losses to balance sheet accounts.
Learn how to maintain exchange rates in SAP using SPRO, workplace settings, and front-end transactions; compare direct and indirect quotations, and post foreign currency valuations.
Run SAP foreign currency valuation for open items, posting vendor and customer documents in USD and GBP, with transactional and closing rates derived from documents and the exchange rate table.
Explore how SAP foreign currency valuation computes valuation using opening and closing rates, posts gains or losses, and automatically reverses entries to adjust the balance sheet.
Explore how sap foreign currency valuation posts realized forex gains and losses when clearing a customer invoice, including open items, local vs document currencies, and balance sheet adjustments.
Master forex valuation with real postings, fix batching position errors, run postings, and observe valuation gains or losses in local and document currencies.
To create your financial statements, you have to perform foreign currency valuation. Foreign currency valuation covers the following accounts and items:
Foreign currency balance sheet accounts, that is, the G/L accounts that you manage in foreign currency.
The balances of the G/L accounts that are not managed on an open item basis are valuated in foreign currency.
Open items that were posted in foreign currency.
Open items that are open on the key date are valuated in foreign currency.
In foreign currency valuation, you have the following options:
You can perform the valuation in local currency (that is, company code currency) or a parallel currency (for example, group currency).
You can also use different valuation methods (for example, lowest value principle).
Prerequisites
You have made the following settings in Customizing:
You have defined exchange rates.
For more information, see Exchange Rates.
You have made these settings in Customizing for New General Ledger Accounting in the following activities: Financial Accounting (New) General Ledger Accounting (New) Periodic Processing Valuate.
Define Valuation Methods
You have defined a valuation method here.
Define Valuation Areas
Here, you have defined a valuation area and assigned a valuation method to it.
Assign Valuation Areas and Accounting Principles
You have assigned to the valuation area an accounting principle that is also assigned to a ledger group.
The exchange rate differences from the parallel valuation are posted in this valuation area. If you perform parallel valuation with a different valuation method to the first valuation, you do not have to reverse the postings of the first valuation. This information is then available for subsequent closing operations, for example Transferring and Sorting Receivables and Payables
Foreign Currency Valuation Prepare Automatic Postings for Foreign Currency Valuation.
Here, you have defined the expense and revenue accounts for exchange rate differences from valuations. For payables and receivables accounts, you additionally need to have defined the financial statements adjustment accounts.
Key Features
Foreign currency valuation comprises the following functions:
Valuating Foreign Currency Balance Sheet Accounts
Valuation of Open Items in Foreign Currencies
Saving the exchange rate differences determined from the valuation per document
Posting account assignments in valuation documents: