F.

05 - Foreign Currency Valuation

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F.05 - Foreign Currency Valuation

Functionality

In order to create your financial statements, you have to carry out a foreign currency valuation. This process
valuates all transactions posted in foreign currency per company code and parallel currency transactions. To
perform the valuation you should use an exchange rate for the end of the month. This valuation covers the
following accounts and items:
1. Foreign currency balance sheet accounts - the G/L accounts that you run in foreign currency. The balances
of the G/L accounts in foreign currency are valuated.
2. Open items posted in foreign currency. The line items in foreign currency are valuated.

You have the following options for the foreign currency valuation:
a) You can carry out the valuation in local currency, (company code currency),
b) You can valuate in parallel currency (for example, group currency).

You can also use different valuation methods (for example, lowest value principle).
The posting of valuation is done by the batch input session. It is recommended that you run each valuation
separately, so e.g. you will create a separated batch input for customer open items, then another one for vendors
and another one for GL.

Scenario

Before year-end closing you need to perform a foreign currency valuation for GL, customer and vendor open
items. To perform valuation of balances in GL (for GL accounts with no open item management) your have to
change your selection to activate the related fields.

Requirements

GL, Customer and Vendor Master, the accounting transactions posted in foreign currencies (different than
company code currency). Defined in Customizing GL accounts for valuation postings.

Menu Path Accounting Financial Accounting General Ledger Periodic Processing Closing
Valuate F.05 - Foreign Currency Valuation

Transaction F.05
Code

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1. Double click on F.05 - Foreign Currency Valuation.

Foreign Currency Valuation

2. Update the following fields:

Field Field Description Values

Name

Company Company code Example:

code 5200

Evaluation Key date for the foreign currency valuation. Example:

Key Date 310702

Valuation A unique key for determining a foreign currency valuation method. This key can Example:
method be valid for cross-chart of accounts. EVR

Valuation Using valuation areas instead of Valuation in Curr type simplifies the process ie Example: SA
area instead of running Forex valuation 3 times for each currency type, we only run it
one time for 3 currency type simultaneously.
For SABIC theres defined the valuation area SA. SA includes (1) Company
code currency (2) Group currency Group valuation (3) Group currency Profit
Center valuation

Batch Code identifying the batch session that is created Example:

input FCV0620021
session
name

Document Date the transaction occurred Example:

date 310702

Posting Date that the business transaction occurred Example:

date 310702

Posting Fiscal month when the transaction posts to the General Ledger Example: 7
period

Reversal Date when you want to post a reverse. Normally the 1st day of next month Example:
posting 010802
date

Reverse Posting period for reversal Example: 08

post.
period

3. Now you need to select the accounts you want to valuate. Click Selections .

Foreign Currency Valuation

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4. Click Valuate vendor open items .

5. Click Valuate customer open items Button .

You can select only particular vendor / customer accounts to be valuated. If you leave the selection
fields empty (like in our example), all the accounts will be selected for valuation.

6. Click Execute Button to perform valuation. Note that the system does not create the postings
immediately but creates a batch input session instead.

Foreign Currency Valuation

Note: The system displayed a report presenting valuated vendor and customer open items. Press POSTINGS
Button to display the accounting documents that were created. These documents have not been
posted yet; theyre stored in a batch input session:

Foreign Currency Valuation

7. Click Back Button .

8. To post the valuation, you need to process the Batch Input Session that youve just created. You can open
another SAP session. From the main menu choose System Services Batch input Sessions

SAP Easy Access

Batch Input: Session Overview

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9. Select the session you want to process. (Select the row which contains your Batch input session, e.g.
FCV0620021)

10. Click Process Button .

Process Session FCV0620021

11. Click Background .

12. Click Process Button to begin posting of documents.

13. Once the session was processed, you need to check the results. To analyze your batch input session,
follow the menu path:
From the main menu choose System Services Batch input Sessions

SAP Easy Access

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Batch Input: Session Overview

14. Select Row which contains your Batch input session FCV0620021

15. Click Analysis Button . The system will display the details regarding the session that was
processed:

Analysis of Session FCV0620021

16. Click Back Button .

17. As a result of valuation some accounting documents were posted. To display them use the transaction
FB03 (Document Display):

SAP Easy Access

Display Document: Initial Screen

18. Update the following fields:

Field Name Field Description Values

Document Number of the SAP R/3 document that is internally assigned by SAP R/3 when Example:
number certain transactions are completed 10001250
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 Company Enter here company code number Example:
code 5200

Fiscal year Fiscal year number Example:

2002

19. Click Enter Button to confirm your entries.

Display Document: Overview

Note: The above document shows zero balance because is displayed in Document currency.

20. To display your document in local currency Click Display currency Button .

21. Click Enter Button.

Display Document: Overview

22. Click Back Button .

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