few queries about foreign revaluation for vendor/customer open items

[surs_mittal]

I am trying the transaction F.05 for the first time for vendor & customer open items in foreign currency. I have a few queries:-

1. The ouput contains 2 exchange rates. One is picked from the transaction header. My query is from where is the other rate being picked up. In my current system, I could make out that exch rate in transaction header is being picked automatically from table OB08....however I am unable to deduce the source of the 2nd exch rate.

2. What is the significance of "balance sheet preparation valuation". Earlier in test runs, only "new difference" was getting populated. However the user wanted to see "old diff" also. So while doing some trial run in test client, I checked the "bal sheet prep valu" and posted.....after this run, I am getting values in "old diffe" and "new diff" also. And the posted amount is the difference of the two. What is the significance and ideal way?

3. Should the entry be reversed if I am revaluating at year end? Why I am asking is because in some threads I read that revaluation at year is not to be reversed....

Thanks,

SM

[anjireddy_appireddy · Accepted solution]

1. To find out difference latest date(Key Date for OI Overview) will be taken by comparing with document posted dated. Based on that system shows diffrences

2. The items are valued using the exchange rate valid at the key date. The

difference determined in local currency is output and posted. The

valuation can also be done for parallel local currencies and according to

different valuation approaches (HGB, GAAP).

The result of the valuation is required for the creation of the financial

statements. You should therefore carry out the valuation before the

grouping of receivables and payables with program SAPF101. The valuation

difference is then noted in the document. Use the valuation areas to

calculate a different valuation method, or to save the result for further

processing activities.

3. we need to reverse entries .