Foreign Exchange Revaluation of GR/IR Accounts

[Former Member]

Dear all,

We had implemented mySAP ERP ECC 5. We had maintained the configuration of FBKP for automatic posting for Exchange Rate Differences for Transaction KDF for the GR/IR Account.

But for revaluating the open line items of GR/IR through the T-Code of "FAGL_FC_VAL - Foreign Currency Valuation (New) ", and after giving the required characteristics of company code, Evaluation Key Date and valuation area and then in the tab of open items, we select the option of Valuate GR/IR Accounts.

Also, we had checked the GR/IR account open items as on the Evaluation Key date and we the said G/L contains the open items wherein the document currency is not equal to the local currency. Hence through this T-Code system should revaluate the GR/IR open line items.

But system is not revaluating the same.

Please suggest any other method to revaluate the GR/IR account open line items.

Regards

Dhirav Shah

[Former Member]

Hello,

Functionally GR IR account should be always maintained as "Only balances in Local currency".

Can you highlight a scenario where in it should be otherwise.

All clearing accounts should be the same.

Regards

Anantha

[Former Member]

The said setting of " Only balances in Local currency" for the clearing G/L is already maintained.

Regards

Dhirav Shah

[Former Member]

Hello Dhirav

Then you need not do Foreign exchange valuation.

Even if you do, what is the use of revaluating lineitems posted in local currency.

Please explain if am missing some understanding here.

Regards

Anantha

[Former Member]

Dear Anantha,

If your purchase order is in foreign currency and subsequently a Goods Receipt is being done, then system will post the entries in the foreign currency only. Wherein the system is giving credit to the GR/IR account which is a provision account.

Now on the cut off date if the vendor has not issued his bill then the said GR/IR account has to be revaluated on the said date because the liability of the company has arisen for making the payment in the foreign currency, which has to be revaluated as on the cutt off. Supposingly if the said credit to the vendor has been given, then the vendor had to be revaluated as on the cut off date as per Indian AS 11. Same is the case here. We had not received the bill of the vendor but we are revaluating the provision for purchase.

Hence foreign exchange revaluation has to be done for the GR/IR accounts.

regards

Dhirav Shah

[Former Member]

Dear Dhirav,

The document currency would be USD (foreign currency) but the posting to GR IR would be only in local currency.

Kindly go to the GL account report and check the same, you would understand.

The Foreign exchange difference if any would get posted at the time of doing GR itself.

Hence no need to revaluate.

kindly refer to the import process given by SAP - CIN version, it is very clear.

you need not worry of AS11 if you had checked "postings in local currency only"

Regards

Anantha

[Former Member]

Hi Dhirav,

You can use any of the following transaction codes to carry out your foreign currency valuation/posting

<b>F-05 </b> Post Foreign Currency Valuation

<b>F.05</b> Foreign Currency Valuation

<b>F.06</b> Foreign Currency Valuation:G/L Assts

<b>F04N</b> Vendor Foreign Currency Valuation

<b>F05N</b> Customer Foreign Currency Valuation

<b>F06N</b> Foreign Currency Val. (G/L Accounts)

<b>FBB1</b> Post Foreign Currency Valn

<b>FNSA</b> Foreign currency valuation

<b>GLBW </b> Foreign Currency Valuation:G/L Assts

<b>ABAW </b> Balance sheet revaluation

I hope the above helps.

Do not forget to award the points please.

Regards,

Jacob