Skip to Content
author's profile photo Former Member
Former Member

Foreign Currency Revaluation Configuration

Dear Expert,

How to configure OBA1 Foreign currency revaluation. please expline KDB and KDF,

Which GLs will assign in Exch. Rate Diff. using Exch. Rate Key (KDB) and Exchange Rate Dif.: Open Items/GL Acct KDF. please explain .

Regards

Jhaanu

Add a comment
10|10000 characters needed characters exceeded

Assigned Tags

Related questions

8 Answers

  • Best Answer
    Posted on Dec 10, 2013 at 10:47 AM

    Dear Jhaanu,

    Please fallow below Details and see step by step. it should help full for you..😊

    Purpose

    This wiki provides a demonstration of valuation of Open Items In Foreign Currencies

    Overview

    From the help.sap.com documentation the following is stated

    Valuation of Open Items in Foreign Currencies.

    Use

    All open items in foreign currency are valuated as part of the foreign currency valuation:

    • The individual open items of an account in foreign currency form the basis of the valuation, that is, every open item of an account in foreign currency is valuated individually.

    Example of open items are customers, Vendors, or GL accounts managed on open item basis (SKB1-XOPVW = X)

    • The total difference from all the open items in an account is posted to a financial statement adjustment account. The account therefore retains its original balance.
    • The exchange rate profit or loss from the valuation is posted to a separate expense or revenue account for exchange rate differences as an offsetting posting.
    • A valuation cannot be made by posting to the payables/receivalbes account, since reconcilation accounts cannot be directly posted to.

    For this reason the amount is posted to an adjustment account, which appears in the same line of the balance sheet as the reconcilation account

    Step 1 - General customizing

    Local currency of company EUR -

    Implementation Guide: Financial accounting (New) -> Financial accounting global settings (New) -> global Parameters for company code - Transaction code OBY6





    Exchange rate 1 USD = 1,7 EUR
    Implementation Guide: SAP NetWeaver -> General settings -> Currencies (check all settings) -> Enter Exchange rates (Transaction code OB08)

    Step 2 - Create Invoice

    SAP Easy Access -> Accounting -> Financial accounting -> Accounts payable -> Document entry -> FB60 Invoice

    Post document

    Display document posted via FB03


    Change in exchange rate occurs 1 USD now equals 1,63 EUR


    SAP Easy Access Screen choose -> Accounting -> Financial Accounting -> Accounts Payable -> Accounting -> FBL1N -Display/Change Line items



    Step 3 - Review of Foreign Currency Valuation customizing

    Prior to performing a foreign currency valuation review of customizing:

    Implementation Guide:Finanical Accounting (New) -> General Ledger Accounting (New) -> Periodic Processing -> Valuate

    Define Valuation Methods




    Define valuation Areas

    Define Accounting Principles





    Check Assignment of Accounting princples to ledger Group

    *required if you have more than one ledger


    Perpare Automatic Postings for Foreign Currency Valuation

    Select Transaction KDF, enter Chart of Accounts

    The Target Accounts for KDB/KDF can also be defined per valuation area


    Account Determination per Valuation Area


    Step 4 - Perform Foreign Currency Valuation

    To perform a foreign currency valuation, from the SAP Easy Access Screen, choose Accounting -> Financial Accounting ->

    General ledger/Accounts Receivable/Accounts Payalbe -> Periodic processing -> Closing -> Valuate -> Foreign Currency Valuation (New)

    Transaction FAGL_FC_VAL (Program FAGL_FC_VALUATION)



    Execute

    Click on Postings button



    To create valuation documents create postings must be ticked on, if you execute without create postings ticked, this means that program is run in test mode.

    If there are errors when posting, a batch input session is created (transaction SM35)

    Update run is saved in table FAGL_BSBW_HISTRY

    Best Regards,

    Krish.

    Add a comment
    10|10000 characters needed characters exceeded

  • author's profile photo Former Member
    Former Member
    Posted on Nov 26, 2013 at 08:27 AM

    Dear Jhaanu,

    1. If a valuation area is used, the entries in table t030hb are used. If no valid entry is found for the account being verified, table T030H is checked for valid entries. If no valid entry is found here, T030S is checked. If a valid entry is still not found, an error message is output.

    2. If no valuation area is used, the entries in table T030H are used. If these entries are incorrect, table T030S is checked. If neither table contains valid entries for the account determination, an error message is output.

    3. If you only want to use the entries in T030S, you can set the parameter "no_to30h".


    Note that the entries in table T030S are only used for accounts that are
    neither open-item managed nor reconciliation (control) accounts. In other words,
    T030S is only used for the valuation of account balances.

    For accounts that are not managed as open-item (balance valuation), both customizing tables are valid. The tables are read in this order:

    * table T030H is read. This is your customizing in oba1 (KDF-ob09).
    * if nothing is found, the report reads your customizing from table
    T030S (KDB). If you defined an entry for your chart of accounts and
    exchange rate difference key, this entry will be found.
    * if nothing is found, an error message will be displayed.

    I hope this helps.

    Best regards,

    Erika

    Add a comment
    10|10000 characters needed characters exceeded

  • author's profile photo Former Member
    Former Member
    Posted on Dec 10, 2013 at 07:06 AM

    Dear Jhaanu,

    Kindly find the Following screen which help u to resolve your issue

    400301 is P & L Account i.e. Exchange rate loss of gain account

    and Transaction KDF

    G/L Account 160000 is a reconciliation account of Vendor payable

    hope this will help to solve your issue

    Thanks & Regards

    Trinath


    docomo_test.JPG (23.2 kB)
    docomo_test.JPG (29.7 kB)
    Add a comment
    10|10000 characters needed characters exceeded

  • author's profile photo Former Member
    Former Member
    Posted on Jun 23, 2014 at 05:24 AM

    Hi jhaanu,

    There are two types of GL accounts.
    1. Open item managed accounts :- vendor/customer accounts and clearing accounts.
    2. Non Open item managed accounts:- Bank accounts, material accounts.

    KDB :- Is useful to do the settings for balance valuation for non open item managed accounts. Here you'll create one indicator with assignment of forex gl accounts and this indicator will be assigned to the GL masters.

    KDF:- Is useful to do account determination for open item managed accounts.Here you assign forex accounts to OIM accounts.

    Hope this clarifies your question..

    Regards,

    Kavita

    Add a comment
    10|10000 characters needed characters exceeded

  • Posted on Nov 25, 2013 at 08:44 PM

    Hello,

    I can send document about setting up curr. valution to you.

    Doing all the explanation with screenshot is quite a bit stuff.

    I you are interested, please let me know.

    send email to: sap.leitner@yahoo.com

    all the best Erwin

    Add a comment
    10|10000 characters needed characters exceeded

  • Posted on Feb 23, 2014 at 12:18 PM

    Hello,

    Any more quesitions? If no, please mark item as closed, in accordance to SNC rules.

    all the best

    Erwin

    Add a comment
    10|10000 characters needed characters exceeded

  • Posted on Jul 11, 2014 at 11:32 AM

    Hello,

    I have sent a descrption about FX valuation.

    Just take a look.

    all the best Erwin

    Add a comment
    10|10000 characters needed characters exceeded

  • Posted on Nov 01, 2019 at 09:45 AM

    why we are accounting principles concept here.

    Add a comment
    10|10000 characters needed characters exceeded