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Forex Month End Process, Need Steps


Need steps for FOREX valuation on month end.

Kindly, please.


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  • Best Answer
    Posted on Oct 22, 2008 at 01:32 PM


    T-code FAGL_FC_VAL

    BR Tarik

    read the SAP help:

    Foreign Currency Valuation Locate the document in its SAP Library structure


    To create your financial statements, you have to perform a foreign currency valuation. This valuation covers the following accounts and items:

    Foreign currency balance sheet accounts, that is, the G/L accounts that you run in foreign currency.

    The balances of the G/L accounts that are not managed on an open item basis are valuated in foreign currency.

    ● Open items that were posted in foreign currency.

    Open items that are open on the key date are valuated in foreign currency.

    You have the following options for the foreign currency valuation:

    ● You can perform the valuation in local currency, (company code currency), or a parallel currency (for example, group currency).

    You can also use different valuation methods (for example, lowest value principle).

    If you translate additional currencies from the local currency, foreign currency valuation automatically performs a currency translation according to FASB 52 (US GAAP).


    You can only perform a valuation run once for each valuation area for a specific key date.


    You have made the following settings in Customizing:

    ● You have defined exchange rates.

    For more information, see Exchange Rates.

    You have made the settings in Customizing for new General Ledger Accounting under Financial Accounting (New) ® General Ledger Accounting (New) ® Periodic Processing ® Valuate.

    ● Define Valuation Methods

    You have defined a valuation method here.

    ● Define Valuation Areas

    Here, you have defined a valuation area and assigned a valuation method to it.

    ● Assign Valuation Areas and Accounting Principles

    If you are using parallel ledgers, you have assigned to the valuation area an accounting principle that is also assigned to a ledger group.

    The exchange rate differences from the parallel valuation are posted in this valuation area. If you perform a parallel valuation with a different valuation method to the first valuation, you do not have to reverse the postings from the first valuation. This information is then available for subsequent closing operations, for example, Transferring and Sorting Receivables and Payables

    ● Foreign Currency Valuation ® Prepare Automatic Postings for Foreign Currency Valuation.

    Here, you have defined the expense and revenue accounts for exchange rate differences from valuations. For payables and receivables accounts you must also define the financial statements adjustment accounts.


    The program Foreign Currency Valuation (New) comprises the following functions:

    Valuation of foreign currency balance sheet accounts

    Valuation of open items in foreign currencies

    ● Saving the exchange rate differences determined from the valuation per document

    ● Posting account assignments in valuation documents:

    If you use document splitting, the valuation documents are posted with the account assignments that you have defined as document splitting characteristics in Customizing.

    ○ For balance valuation, you can define additional account assignment characteristics. These characteristics are always updated (even if you do not use document splitting). You define the additional account assignment characteristics in Customizing for foreign currency valuation under Define Additional Account Assignments for Balance Valuation. For more information, see the documentation on this IMG activity.

    ● Performing the adjustment postings required


    The following topics describe how to perform foreign currency valuation using the reports, and how to post valuation differences. You can also make this posting manually. From the SAP Easy Access screen, choose Accounting ® Financial Accounting ® General Ledger ® Document Entry ® Valuate Foreign Currency.


    To perform a foreign currency valuation, from the SAP Easy Access screen, choose Accounting ® Financial Accounting ® General Ledger/Accounts Receivable/Accounts Payable ® Periodic Processing ® Closing ® Valuate ® Foreign Currency Valuation (New).

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