Currency valuation for B/S & P&L on different exchange rate

[Former Member]

Hi Experts,

We are on ECC6, One of our company code currency is EURO, where our group currency is USD. We are not maintaining any open item management functionality for any of our GL's.

We have a new requirement from business as all the balance sheet GL's valuation should happen on year to date exchange rate i.e (Spot rate) and difference of forex should get posted in group GL's. All the P&L GL's valuation should happen monthly on average rate.

How we can manage this requirement as currency difference should get posted in group GL's and we have different requirement for B/S & P&L.

I wanted to know is there any standard T.code through which I can address this. Please advise

Regards,

Shilpa

[Former Member]

HI,

customizing: maintain 2 different valuation areas with the ex rate type you need.

Run FAGL_FC_Val twice selecting the accounts to be valuated. for BS accounts use one valuation area, for P&L accounts (balances) the other one.

Best regards, Christian

[Former Member]

Hi,

Thanks allot for this solution as this is working for P&L items but for the B/S GL's we need system should calculate the difference & make valuations at year to date (YTD) value.

For Example: At Jan end if exchange rate got changed to .9100 then all the B/S items to be calculated as per this rate, again in the next month for Feb new rate will get updated to .9122 then both Jan & Feb values should get updated to new exchange rate.(.9122). Again in March if exchange rate gets changes as .9222 then Jan, Feb & March all three months values to be update on the new exchange rate also differences to be posted in every period.

Above is the Balance sheet requirement, if any one has any idea to address this it will be grate help.

Thanking in advance.

Shilpa

[Former Member]

- small suggestion, not sure if relevant

- have you evaluated the option of Detla Logic for FAGL_FC_VAL

- SAP notes in link below has more information

[960661|https://websmp130.sap-ag.de/sap(bD1lbiZjPTAwMQ==)/bc/bsp/spn/sapnotes/index2.htm?numm=960661]

[1006684|https://websmp130.sap-ag.de/sap(bD1lbiZjPTAwMQ==)/bc/bsp/spn/sapnotes/index2.htm?numm=1006684]

Rgds.

Edited by: Karthik T on Jun 30, 2010 11:15 PM

[Former Member]

Hi Shilpa,

Proceed as follows:

1. Use transaction code OB59 to maintain valuation area for Balance Sheet Translation. For example. MEBS ( Month End Balance Sheet Translation).

Select radio button Always Valuate.

Document Type: FX

Under Exchange Rate Determination

• ExchRate Type for Debit Bal : 0011

• ExchRate Type for Credit Bal: 0011

• Select Radio button Determine rate type from account balance

2. Use transaction code OB08 to maintain the currency exchange rates on monthly basis for ExRt Type 0011.

This will help take care of your requirement.

Regards,

Elias

[Former Member]

Hi Elias,

Thanks for the solution but I am still in, confusion state where after this configuration should I run the T.Code u2013 u201CFAGL_FC_VALu201D or should I run T.Code u2013 u201CFAGL_FC_TRANSu201D, as the first one will make the Foreign Currency Valuation & second one is for Currency translation. As our requirement is for Balance sheet GLu2019s so will this Currency Translation will work? (With my above examples) If it is the case then what is the difference between these two T.codes.

Regards,

Shilpa

[Former Member]

Hi Shilpa,

How I understand it using the U.S as my example:

In the first transaction code, in other words, F.05 or FAGL_FC_VAL are used if the currency in the transaction is not the same as the local currency of the company. For instance, U.S GAAP mandates companies to report their financial statements in local or functional currency. So let's say the transaction currency for a U.S company code is/was GBP. However, GBP is not the local currency of the U.S company code so you would to have perform foreign currency valuation with any of the above named transaction codes using the exchange rate of the key date specified at the time of the valuation. This valuation will then give you a gain or loss as a result of differences between the original amount and the revaluated amount.

The second transaction code FAGL_FC_TRANS valuates the balances or additional currencies. But to be able to run this second transaction code, you would first have to perform FAGL_FC_VAL or F.05 first (this is a prerequisite).

So even if you are to perform currency translation, you will still need to run FAGL_FC_VAL first.

Regards,

Elias

[Former Member]

(Posted a question but solved)

Thank you

Edited by: Alice K. Yamada on May 4, 2011 6:57 PM

[former_member188028]

Hi,

Select Valuate P&L accounts indicator under GL balances tab in FAGL_FC_VAL.

Open item sttings can be actiavted at any point of time using with Program RFSEPA02.

But make a copy for this program as standard program doesnt support.

Rgds

Murali. N

[Former Member]

Hi,

Yes I have knowledge of this T.Code, but this is not the solution for my question. Hope my question is clear. Request other experts to give their thought process.

Thanks allot.

Regards,

Shilpa