F.05 and valuation account issue

[Former Member]

Hello,

I have a crazy question about the Payment document posting. Here is the scenario:

There is an Invoice cretaed through MIRO in USD. The company code is in CAD.

So there are postings against the GR/IR accounts.

If I do Payment runF110, the total exchange gain/loss is posting to the corresponding account based on the currency ex. rate

If the users does F.05 (GR/IR Valuation option checked) at the period end and then if the user runs F110 following month, the payment document shows credit of valuation account postings and debit to the ex change gain/loss account. Why is it showing the valuation account postings here? What should we do with these postings?

Can some one explain me the business process of the whole F.05 and F110 postings please?

Thanks In Advance.

[Former Member · Accepted solution]

Hi Venkat,

Was the entry generated via F.05 reversed the next period/date?

Nadini

[Former Member · Accepted solution]

Hi, I don;t know the business process at my client place. Please tell me in both scenarious.

Thanks