Foreign Currency Revaluation Configuration

[Former Member]

Dear Expert,

How to configure OBA1 Foreign currency revaluation. please expline KDB and KDF,

Which GLs will assign in  Exch. Rate Diff. using Exch. Rate Key (KDB) and Exchange Rate Dif.: Open Items/GL Acct KDF. please explain .

Regards

Jhaanu

[former_member211722 · Accepted solution]

Dear Jhaanu,

Please fallow below Details and see step by step. it should help full for you..

Purpose

This wiki provides a demonstration of valuation of Open Items In Foreign Currencies

Overview

From the help.sap.com documentation the following is stated

Valuation of Open Items in Foreign Currencies. 

Use

All open items in foreign currency are valuated as part of the foreign currency valuation:

• The individual open items of an account in foreign currency form the basis of the valuation, that is, every open item of an account in foreign currency is valuated individually.

       Example of open items are customers, Vendors, or GL accounts managed on open item basis (SKB1-XOPVW = X)

• The total difference from all the open items in an account is posted to a financial statement adjustment account. The account therefore retains its original balance.
• The exchange rate profit or loss from the valuation is posted to a separate expense or revenue account for exchange rate differences as an offsetting posting.
• A valuation cannot be made by posting to the payables/receivalbes account, since reconcilation accounts cannot be directly posted to.

       For this reason the amount is posted to an adjustment account, which appears in the same line of the balance sheet as the reconcilation account

Step 1 - General customizing

Local currency of company EUR -

Implementation Guide: Financial accounting (New) -> Financial accounting global settings (New) -> global Parameters for company code - Transaction code OBY6

Exchange rate 1 USD = 1,7 EUR
Implementation Guide: SAP NetWeaver -> General settings -> Currencies (check all settings) -> Enter Exchange rates (Transaction code OB08)

    

Step 2 - Create Invoice

SAP Easy Access -> Accounting -> Financial accounting -> Accounts payable -> Document entry -> FB60 Invoice

Post document

Display document posted via FB03

Change in exchange rate occurs 1 USD now equals 1,63 EUR

SAP Easy Access Screen choose -> Accounting -> Financial Accounting -> Accounts Payable -> Accounting -> FBL1N -Display/Change Line items

 

Step 3 - Review of Foreign Currency Valuation customizing

Prior to performing a foreign currency valuation review of customizing:

Implementation Guide:Finanical Accounting (New) -> General Ledger Accounting (New) -> Periodic Processing -> Valuate

Define Valuation Methods

Define valuation Areas

Define Accounting Principles

  

Check Assignment of Accounting princples to ledger Group

*required if you have more than one ledger

Perpare Automatic Postings for Foreign Currency Valuation

Select Transaction KDF, enter Chart of Accounts

The Target Accounts for KDB/KDF can also be defined per valuation area

Account Determination per Valuation Area

Step 4 - Perform Foreign Currency Valuation

To perform a foreign currency valuation, from the SAP Easy Access Screen, choose Accounting -> Financial Accounting ->

General ledger/Accounts Receivable/Accounts Payalbe -> Periodic processing -> Closing -> Valuate -> Foreign Currency Valuation (New)

Transaction FAGL_FC_VAL (Program FAGL_FC_VALUATION)

Execute

Click on Postings button

To create valuation documents create postings must be ticked on, if you execute without create postings ticked, this means that program is run in test mode.

If there are errors when posting, a batch input session is created (transaction SM35)

Update run is saved in table FAGL_BSBW_HISTRY

Best Regards,

Krish.

[yogesh_kshatriya2 · Accepted solution]

Thanks for such detail explanation.

[Former Member · Accepted solution]

Hi,

Krish thanks for your documents,

it is for gl level i think so,

you have any documentation in Vendor level pls share it.

[Former Member · Accepted solution]

Hi Krish

Thanks for sucha lucid and detailed explaination. Could you please brief on the various accounts in KDF key? I mean, what are the various accounts for. Wanted to know the difference between them.

Regards

Vibhor

[former_member234654]

Dear Jhaanu,

1. If a valuation area is used, the entries in table t030hb are used. If no valid entry is found for the account being verified, table T030H is checked for valid entries. If no valid entry is found here, T030S is checked. If a valid entry is still not found, an error message is output.

2. If no valuation area is used, the entries in table T030H are used. If these entries are incorrect, table T030S is checked. If neither table contains valid entries for the account determination, an error message is output.

3. If you only want to use the entries in T030S, you can set the parameter "no_to30h".

Note that the entries in table T030S are only used for accounts that are
neither open-item managed nor reconciliation (control) accounts. In other words,
T030S is only used for the valuation of account balances.

For accounts that are not managed as open-item (balance valuation), both customizing tables are valid. The tables are read in this order:

* table T030H is read. This is your customizing in oba1 (KDF-ob09).
* if nothing is found, the report reads your customizing from table
  T030S (KDB). If you defined an entry for your chart of accounts and
  exchange rate difference key, this entry will be found.
* if nothing is found, an error message will be displayed.

I hope this helps.

Best regards,

Erika

[former_member638558]

why we are accounting principles concept here.

[former_member184878]

Hello,

I have sent a descrption about FX valuation.

Just take a look.

all the best Erwin

[Former Member]

Hi jhaanu,

There are two types of GL accounts.
1. Open item managed accounts :- vendor/customer accounts and clearing accounts.
2. Non Open item managed accounts:- Bank accounts, material accounts.

KDB :- Is useful to do the settings for balance valuation for non open item managed accounts. Here you'll create one indicator with assignment of forex gl accounts and this indicator will be assigned to the GL masters.

KDF:- Is useful to do account determination for open item managed accounts.Here you assign forex accounts to OIM accounts.

Hope this clarifies your question..

Regards,

Kavita

[former_member184878]

Hello,

Any more quesitions? If no, please mark item as closed, in accordance to SNC rules.

all the best

Erwin

[Former Member]

Dear Jhaanu,

Kindly  find the Following screen which help u to resolve your issue 

400301 is P & L Account i.e. Exchange rate loss of gain account

and Transaction KDF

G/L Account 160000 is a reconciliation account of Vendor payable

hope this will help to solve your issue

Thanks & Regards

Trinath

[former_member184878]

Hello,

I can send document about setting up curr. valution to you.

Doing all the explanation with screenshot is quite a bit stuff.

I you are interested, please let me know.

send email to: sap.leitner@yahoo.com

all the best Erwin

[Former Member]

Dear Leitner,

Thank You for your reply

Regards

Jhaanu

[former_member184878]

Hello,

Thank you for nice conversation, yesterday.

Just mark discussion as completed.

br erwin