Foreign currency valuation

Hi

In OB09 Transaction code maintiang the accounts for Exchange gain and Exchange loss.

Under exchange rate difference realized.

we are maintaining for loss and gain and under valuation we are maintaing valuation loss.1 and valuation gain.1

under Translation. there are option to maintain Loss,Balance sheet adjust loss,Gain and Balance sheet gain.

In what situation these options are reuired .

Pls explain brief. and under Translation why we have to maintain automatic posting account and when it will get effect.

Regards.

Babu.