How does Accounting treatment for automatic postings accounting key KDF?

[Former Member]

Hi All,

I need a clarification on the accounting/functionality for the account determination for exchange rate differences for open items.

In my case, One particular GL account will have the following accounts assigned for:

Exchange rate difference realized

Loss:XXXXX

Gain:YYYY

<b>Valuation</b>

Val loss1:AAAA

Val gain1:BBBB

Bal sheet adj1:CCCCC (automatic posting check box not itcked)

<b>Transalation:</b>

Loss:XXXXXX

Bal sheet adj loss:AAAA

Gain:YYYY

Bal sheet adj gain:BBBB

How the values are treated when posted to these accounts....and how the amount will be balanced or cleared when posted to Bal sheet adj1 account CCCC. even though this is not checked as automatic posting how the values are updated inthis account? please let me know. Its very urgent.

In case of translation accounts it has mentioned as bal sheet adj loss account, but in my configuration it is a P&L account. please clarify on this.

rewarded with full points.

Thanks

[Former Member]

Even though you post automatically is not checked if it is used in account assignment, it gets updated when you run your valuation, system doesnt restrict it.

IT has be same value for balance sheet adjustment. In normal accounting terms it is called as Currency transalation income and it needs to be updated

Assign points if helpful

[Former Member]

Thanks Sunil... points awarded.

[Former Member]

in the first step

IN the month end when you run revaluation of open items in foreign currency into local currency

the system calculates the difference between the rate at the posting and end of month exchange rate based on the difference

if you have a gain or loss the gain or loss goes to the valuation gain or loss and the other side of the entry goes to balancesheet adj

The same thing happens for tanslation

Next month you reverse out those entries. When you run the transactions

Fagl_fc_val for valuation and fagl_fc_trans for transalation in ecc 6.0

in previous version i think it is f.05.

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[Former Member]

Sunil, thanks for quick reply.

But as i mentioned my bal sheet acount CCCC is not checked as automatic posting, then how its getting updated?

In my case to a particular transaction there was equalent debit and credit to val loss and gain account, and the same amount is again credited to bal sheet adj account. why it has done this way?

please help.

Thanks,