F.05 - Foreign Currency Valuation

F.05  - Foreign Currency Valuation

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

1.       Double click on F.05 - Foreign Currency Valuation.

Foreign Currency Valuation

2.       Update the following fields:

Field Name	Field Description	Values
Company 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
Valuation 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 .

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.

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:

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

SAP Easy Access

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 .

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

SAP Easy Access

Batch Input: Session Overview

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:

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):

SAP Easy Access

Display Document: Initial Screen

18.     Update the following fields:

Field Name	Field Description	Values
Document 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.

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 .

21.     Click  Enter Button.  

Display Document: Overview

22.     Click  Back Button .