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Foreign Currency Valuation

Foreign currency valuation in SAP ECC 6 is the process of translating foreign currency account balances to the local currency using an exchange rate. Key aspects of the process include: 1) Valuing foreign currency balance sheet accounts and open items in foreign currency transactions using transaction code FAGL_FC_VAL; 2) Configuring currency settings such as the valuation method and exchange rate type; 3) Specifying general ledger accounts for exchange rate differences and balance sheet adjustment accounts. The customizing involves maintaining exchange rate types and other currency settings in SAP.

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90 views1 page

Foreign Currency Valuation

Foreign currency valuation in SAP ECC 6 is the process of translating foreign currency account balances to the local currency using an exchange rate. Key aspects of the process include: 1) Valuing foreign currency balance sheet accounts and open items in foreign currency transactions using transaction code FAGL_FC_VAL; 2) Configuring currency settings such as the valuation method and exchange rate type; 3) Specifying general ledger accounts for exchange rate differences and balance sheet adjustment accounts. The customizing involves maintaining exchange rate types and other currency settings in SAP.

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sivasivasap
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Foreign Currency Valuation in SAPECC 6


Foreign Currency Valuation
This is the process to translate and adjust foreign currency amount of monetary accounts to local amount
by a current suitable exchange rate(standard exchange rate).We carry out the foreign currency valuation before we
create the financialstatements. The valuation includes the following accounts and items:
1.

Foreign Currency balance sheet accounts, that is , G/L accounts that wemanage in a foreign currency (the balances of the
G/L accounts in foreigncurrency are valuated)
2.

Open items (Customers, Vendors, G/L accounts) posted in ForeignCurrency( the line items are valued) Transaction
Code FAGL_FC_VAL valuates open items in foreign currency aswells as the foreign currency balance sheet
accounts.In order to carry out a foreign currency Valuation, we need to make certainsettings in the customizing:

Currency Customizing

Defining the Valuation Method

Defining the G/L account for exchange rate differences from the valuation.We must also specify balance sheet
adjustment accounts for receivable andpayable accountsLet us see the customizing or configuration part of foreign
currency valuationin the IMG:
Step 1: Maintain the Exchange rate type (T-code OB07)
Path in IMG:
SAP Net weavers -> General Setting -> Currencies -> check theexchange rate type.
The below screen appears. Either we can use the existing entries or create anew entry. If we create a
new entry save the data .For our example, we willbe using the Exchange rate determination M Standard Translation
ataverage rate.

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