Difference between FAGL_FC_VAL and FAGL_FC_TRANS

[Former Member]

Hi,

All of my accounts are maintained in my local currency. I have a second currency. I will have transactions posted in both currencies. Can someone explain to me the difference between these two transactions?

FAGL_FC_VAL has a section for G/L Balances that will Valuate G/L Account balances. How is this different than the currency translation of G/L accounts using FAGL_FC_TRANS?

Thank you for any assistance

[atif_farooq]

Dear:

Foreign currency valuation FAGL_FC_VAL is used to valuate the foreign currencies to the particular local currency and post the differences to either exchange loss or gain as maintained in OBA1. Foreign currency translation translates the foreign currency to local currency with out calculating the gain or loss derived from exchange. Parallel currency are valuated in FAGL_FC_TRANS . This is for your information.

Regards

[Former Member]

Thank you for the response. So, if I have transactions posted in a foreign currency to an account during the month, FAGL_FC_VAL will valuate them to local and post the gain or loss. If I have no activity on the account during the month, no gain or loss posting will occur. Is that correct?

Thank you again for your assistance.

[former_member188028]

All transactions which are posted in foreign currency(Not in local currency) are valuated at month end exchange rate and if there is any difference, system posts the Unrealized gain/loss on month end and same entry can be reversed on next month first date because gain/loss is only unrealized.

Rgds

[Former Member]

Thank for the quick response. So based on what you have written, I am only doing the valuation for transactions created in the foreign currency. Any transactions created in local currency, are not re-valued at month end with FAGL_FC_VAL. Is that correct?

My assumption was that I had to create a valuation area that valuated from foreign to local (for transactions posted in foreign currency) and a second valuation area that valued from local to foreign (for transactions posted in local currency). It sounds like I only create one to valuate the transactions posted in foreign currency. Correct?

Again, thank you