Forex revaluation in FAGL_FC_VAL

[Former Member]

Hi

I have a question on Forex revaluation and translation ( tcode FAGL_FC_VAL in ECC 6.0). My Company code currency is CAD and Group Currency is USD. I have set in my config the 'Group currency' value should be valuated from 'Company code currency (  Source currency = 2, Translation taking first local currency as a basis)

In my example, transaction currency is USD, I am posting an invoice of 10,000 USD. Based on the exchange rate  of 1 USD = 1.02796 CAD, it got converted into CAD 10,279.60

At the month end, conversion rate is 1 USD = 1.02417 and i do FAGL_FC_VAL with valuation area Z1 ( This is relevant for Currency type 10 )

Hence a Forex gain of CAD 37.90 got posted in Company code currency ( CAD) . Entyr passed is

Dr. B/S adjustment account        CAD 37.90           USD 0.0

Cr. Unrealized forex gain             CAD 37.90           USD 0.0

My question is, does FAGL_FC_VAL post only in company code currency? Does it not post equivalent group currency amount? Our customer is expecting that.

Also, as a fallout of this, when i do my translation ( FAGL_FC_TRANS), entire forex difference of CAD 37.90 ( in Unrealized forex gain a/c ) is converted at average rate. Our customer says this is not the right way. Instead, Group currency value should be posted at the time of 'Forex revaluation FAGL_FC_VAL' and only the net difference should be posted at the time of translation.

Is the above standard SAP behaviour?

Any help on this would be appreciated.

Thanks

Bas

[Former Member]

It could be because one of the below two reasons.

1. Source Currency for Currency Type 30 is Transaction Currency in that case, there is no gain/loss for Group Currency when Transaction Currency & Group Currency are same i.e. USD in your case.

2. Valuation Area is configured with only one Currency Type, in that case there is no posting in additional Currency Types.

Please check the configuration of your Z1 Valuation Area.  It should have Currency Type 30 as Additional Currency along with Currency Type 10.  Then in combination of OB22 settings, both currencies will be valuated.   Since, in OB22, you have Local Currency as Source for Group Currency, the valuation difference calculated in Currency Type 10 should get converted to 30 with M Rate. 

Hope it helps.

Thanks

Prasad

[Former Member]

Hi Srikanth/Prasad

Issue resolved. I changed the config in Valuation area. Currently, it has both Compnay code currency and then Additional currency as Group currency

I removed ' Group currency' and made the Addl currency blank. Its bizzare but it worked.

Thanks for your helpful comments.

Bas

[Former Member]

Bas,

When you run FAGL_FC_VAL, the valuation difference posted in local currency should get translated and posted in group currency as well.  Please see the following note.

https://service.sap.com/sap/support/notes/1095394

[Former Member]

Hi Srikanth

Thanks for your response. I checked this note and this is already installed in our system ( We are at a higher support pack level , SAP APPL 603, SAPKH60307.

What else could be wrong?  In my OB22 settings, i have given the following settings

Crcy type  30    Group currency                               Currency USD

Valuation  0     Legal Valuation

ExRateType M     Standard translation at average rate

Srce curr. 2     Translation taking first local currency as a basis

TrsDte typ 3     Translation date

And in my Valuation area setting, i have the below setting

Valuation area   Val method       currency type                     Addl currency

Z1                    ZVT                  Company code currency      Group currency

Is there any other setting missing? Any help on this would be great.

Thanks

Bas

[Former Member]

Please see the following note.

https://service.sap.com/sap/support/notes/1692445

Also, what is surprising is that in the valuation area settings, even though we have not specified group currency as additional currency, we are still seeing postings in group currency.  The help text on additional currency field in val. area config. is a little confusing.  From the help text and the example given, I didn't understand whether the remeasurement is posted in additional currency when local currency = additional currency or the other way round.

Nevertheless, the above SAP note directly refers to the issue that you have, and it is relevant for your patch level.

Hope this helps.

Best,

Srikanth