Foreign Currency Valuation

[Former Member]

Hi Gurus,

What happens when we do F.05 foreign currency valuation

Can You pls explain

Regards

Ravi

[Former Member · Accepted solution]

Hi,

Before doing F.05 some procedure should be take like mantaining,

1) Define valuation method ( OB59)

2) Assign G/L Accounts for the forigen Currency Valuation ( OBA1) By Using KDB, KDF Transaction , Here you can define Gain/Loss & valution Gain/ Valuation Loss accounts.

After doing this you can run F.05 , this will pick up the open items posted in foreign currency with reference to the exchange rate specified by you and ascertain the gain or loss of the item and post the same to relevant GL accounts defined for the same.

Hope this will help you

Regards

Arun

[Former Member · Accepted solution]

Hi ,

Follow the following steps :---

1) we need to define the exchage rate types (OB07,OBBS,OB08).

2) Assign Exchange rate type in document type.(oba7).

3) Create gl accounts for Exchange Loss and Exchage gain a.c . (FS00)

4) Assign Thes G/L accounts under the transaction keys "KDB" & "KDF" in OBA1.

5) Define Valuation Method(OB59) :--

In this step assign the following :-

document type,exchange rate type.

6)Post an Open Items in foreign Currency.

7)Enter the New exchange rate in OB08.

8)Execute the Foreign Currency Fluctuations run (F.05)

Regards,

Kiran Konujula

[Former Member]

Hi Ravi,

first information you can get in the IMG (Transaction SPRO). You can find the information in Financial Accounting (New)/General Ledger Accounting/Periodic Processing/Valuate/Foreign Currency Valuation.

Then you can read the documentation document from "Prepare Automatic Postings for Foreign Currency Valuation.

Regards

Michael

[Former Member]

If your settings are alright, then the foreign currency valuation program valuate the account items/open items posted in foreign currency with reference to the exchange rate specified by you and ascertain the gain or loss of the item and post the same to relevant GL accounts defined for the same.

Regards