F.05 post revaluation to same account?

[Former Member]

Hello,

I have had a request to set up a balance sheet account for F.05 revaluation, however they want the revaluations to post right back into that same account.  The setup would look like the following.  Will this work?  Or will F.05 just keep revaluing the account as the changes are posted?

The account is a balance sheet account, in USD.  It is not open item managed.

Thanks much.

[Former Member]

Hi... GL 213001 should be Open Item managed and Open Forex Entries document should there to calculate gain or loss at the end of the period

At Bal.Sheet.adj u can use same GL or another GL depends on your requirement

Ramesh

[former_member211635]

Hi Andrea,

It does not makes sense to post in same account 700400 for exch diff realized and valuation

Reason:-

1. Exch rate diff is the actual gain / loss which is recorded in the books of accounts

2. Valuation is month / qtr / year end valuation for foreign currencies and fluctuations are posted and reversed in the next period.

The nature of both the p/l accounts are different and auditor might raise a query if both are same

System won't stop you even if it is the same account

Hope it helps

Thank You

Nishu

[Former Member]

I understand that the realized gain and loss are posted to the 700400 account.  For some reason my business users want to post the balance sheet adjustments and balance sheet adjustment gains to the G/L account that was just valuated by F.05 (213001 in this case).

So if I understand, if I leave the configuration as in my screen shot above, the system will behave normally (it won't try to revalue the revaluation it just did) but that there may be audit issues because we are posting the difference back to the account from which the difference was determined?  Do I have that correct?

[Former Member]

Hi,

I think you need to create another Forex Gain/Loss account Valuate similar to 700400 ( ur Account)

This  Configuration will post the values into the Balance Sheet adjustment account and forex gain/loss Valuation account(Expense).

Have  you assigned Gain or Loss account in OBA1 against KDB.

If  you are using New GL Accounting then better use the t  code FAGL_FC_VAL.

Thanks,

M.Shiva Kumar

[Former Member]

The only account set up in OBA1/KDB is the 700400 account.  So it is not possible to post the revaluation back to the same account?   We have to post it to another exchange rate difference account or some other revaluation account?

[Former Member]

Hi,

The postings of Foreign Currency valuation will be reversed on a date so assign a Forex gain or Loss Valuate account( May be 700401) in Valuation Part of the screen  in your attachment. So it will be easy for us to track the things.

The Balance sheet you configured in the above screen is fine.

The Entry in OBA1 is also correct.

Once do a test run to confirm the results and then do a actual run.

Thanks,

M.Shiva Kumar