FC revaluation

[Former Member]

Hi ..

Can anybody tell me. what is the need to update intermediary account instead of Reconciliation account when we do revaluation for customers and vendors.

[Former Member · Accepted solution]

Hi Anil,

If you have seperate account its easy to find the Loss or gain in FC revaluation account

Ravi

[Former Member]

got solution...

[Former Member]

Hello Anil,

you can valuate with TC. F.05 and configuration is in TC.OB59

When foreign currencies are valuated, all the open items that were posted in a foreign currency are valuated. The valuation is based on the individual open items in a foreign currency, that is, each open item in a foreign currency is valuated individually.

Prerequisites:

- The exchange rate table must be maintained (transaction OB08)

- Valuation method(s) must be defined (transaction OB59)

- Adjustment account for each customer and vendor reconciliation account

if useful pl assign points

thanks

anil venkat

[Former Member]

Hi Venkat,

Thanks for your inputs.

Can you tell me what is the need to define Exchange rate diff key KDB and assign it in Control data tab of FS00.

you are telling about Valuation adj. a/c. This a/c arises on account of Open items revaluation. I do agree that. How can be Normal GL Accounts are updated without OIM..!?........

[Former Member]

Unanswered.......Unanswered

[Former Member]

companies may have foregin exchange transactions rarely or frequently. for this reason, we are maintaining special g/l transations. whether it is gain / loss we have to maintain g/l accounts. these are all deal with banks.

if you have other than this, you have to take the document date price as base. there is no need to revaluate.example, your company need a foregin DD, or Foregin curency hard cash, the bank will give you the requried at market price.

you can't directly receive/send the foreign exchange related transactions with out the involment of your bank.

regards,

[Former Member]

I think you are not getting my question. My problem is when we revaluate a GL/Vendor / Customer the system updates Gain or loss a/c in P&L and GL/Vendor/cusotmer a/c or an intermediary a/c on the opposite (b/s).

If we use Intermediary a/c for the revaluated GL/Vend/Cust (open item Mgt) then what about Normal GLs revaluation. They are revaluated and updated to Gain or loss (p&L) and Normal GL a/c (b/s)......

[Former Member]

Revaluation is only for reporting purposes at month-end rate. The gain/loss is unrealized and is reversed after month-end reporting. Amounts at the actual exch. rate hit cust./vend. a/cs. when clearing happens (realized).

[Former Member]

Hi Srikanth,

Again I have a doubt on FC revaluation.

As you mentined that for unrealised gain or loss we update intermediary accounts, then what about Normal GL revaluations?

For Normal GL FC revaluations we update the same GL account with Exchange Diff rate key KDB.