Valuation Balance Sheet Adjustment account in FBKP

[former_member482855]

Hi Experts,

We are clearing a GL 230140 which is a Income Tax Payable account. There is a difference in the document currency and while clearing system is suggesting an automatic entry to GL 230141 which is a Balance sheet adjustment account along with gain/loss accounts(820115 and 830157). This GL 230141 is maintained under FWA(Exchange rate differences -> Exchange rate differences: Open items/GL Accts -> Valuation category -> Balance sheet adjustment account in tcode FBKP.

What is the significance of the Valuation/Translation accounts. Usually system has to take the gain/loss accounts defined under "exchange rate difference realized".

Thanks,

Chaitanya

[former_member190901]

Hi Chaitanya,

As period end task you run the Foreign Currency Valuation - FAGL_FCV - which valuates open items and balances at period end closing exchange rates. When an open item that has been subject to this valuation is cleared the system cancels the current valuation (unrealized FX) and posts the actual FX differences (realized). That's why the unrealized FX differences account is posted while clearing an open item/balance.

Hope I've been clear enough.

Regards,

Filipe