SIAE User Manual FI - Foreign Currency Valuation.pdf

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SIAE IntRollout SAP User Manual Foreign Currency

Valuation

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SIAE Int Rollout SAP User Manual

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Roberto Dell‟Oro Status

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SIAE IntRollout User Manual Foreign currency Valuation Pag. 1

Project SIAE International Rollout

- SAP User Manual - Foreign Currency Valuation -

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INDEX

1 - FOREIGN CURRENCY VALUATION .................................................................................... 3

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1 - FOREIGN CURRENCY VALUATION

SAP Transaction to perform Foreign Currency Valuation : FAGL_FC_VAL

Access path Menu Accounting Financial accounting General Ledger Periodic

processing Closing Valuate Foreign Currency Valuation (New)

Transaction code FAGL_FC_VAL

Use transaction FAGL_FC_VAL to perform foreign currency valuation for the creation of your financial statements.

The first selection screen appears as follow. Depending on the selection criteria specified, the program reads the items for the customers, vendors and G/L accounts that are open on the key date and adds the items together to create totals by account or group and currency.

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Postings folder :

Main fields:

Company code : insert the company code on which you are performing the valuation.

Evaluation key date : Key date for the foreign currency valuation.

For open items: Documents that have not been cleared at this date, or whose clearing date is after this date are considered.

For balances: The period is determined from the key date; if the key date is in period 12, the special periods 13-16 are also considered.

Posting date : Posting date of the postings.

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Valuation Area : insert the valuation area.

Following valuation areas are available in the system :

Siae Colombia

CM SMCO - Revaluation with Reversal

(the system posts the revaluation and reverses it the day after)

CY SMCO - Revaluation No Reversal

(the system posts the revaluation with delta logic : the revaluation is calculated as difference from the last revaluation)

Siae Egypt

EM SMEG - Revaluation with Reversal

revaluation with reverse the day after

EY SMEG - Revaluation No Reversal

delta logic revaluation (no reverse)

Siae UK

GM SMGB - Monthly Revaluation (reversal)


GY SMGB - Yearly Revaluation (no reversal)


Siae Malaysia

MM SMMY - Monthly Revaluation (reversal)


MY SMMY - Yearly Revaluation (no reversal)


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Siae Germany

Foreign currency is not managed as all the transactions are in EUR.

Siae Hong Kong

HY SMHK - foreign currency valuation

delta logic revaluation with both options for year-end closing valuation (no reverse) and mid fiscal year valuation (with reverse)

Create postings : If you select this parameter, postings are generated in effective. These are either executed immediately or put into a batch input session (if you specify a batch input session name). Note that if this is a correction run or a balance sheet-relevant valuation, the postings are made straight away, only the incorrect postings are put into the batch input session.

Document date : insert the document date of the documents generated.

Posting date : posting date of the postings.

Reversal posting date : Posting date for the reversal postings in the batch input session.

Reset Valuation : If you select this parameter then the open items are valuated at the acquisition price. This way the valuation difference is set to zero. The old valuation method is reset. The account determination is reversed: The revenue that arises is posted to the expense account. If this indicator is set, the valuations for the items and balances selected are reset. For open items, the valuation and the reversal posting are reset. For balances, this is dependent on the original valuation run. Valuations are only reset if a valuation has taken place for the same key date with the same valuation area. If an item is not valuated for the key date, the valuation for the item cannot be reset and nothing happens to the item.

Reverse posting : If you set this indicator, postings created are reversed on the reversal date.

!! In case the valuation area is unique (for example for Siae Hong Kong it is only HY), the following additional fields are available too :

Select ‘Year-End Closing valuation’ in case you want to perform the valuation without reverse (usually at year end).

Select ‘Mid-Fiscal Year valuation’ in case you want to perform the valuation with reverse the day after (usually monthly valuation).

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Open items folder :

In this screen you can filter the parameters. Choose for example which kind of account open items you want to include in the valuation procedure (customer accounts, vendor accounts, G/L accounts), which document currency you want to consider, which document numbers.

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G/L Balances folder :

Here you can set some filters on G/L accounts for G/L accounts balances valuation.

For example with the yellow arrow you can insert only the accounts you want to revaluate the balances.

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Miscellaneous folder :

Use this folder to configure for example the list variant in order to customize the layout of the report.

Once every parameter has been set, click on execute button .

As long as the Create Postings flag in the “Postings” folder is not set ( ) no postings will be effectively generated.

The foreign currency valuation report has shown as follow :

In the example the currencies and the exchange rates are shown and the differences are calculated.

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Use button „postings‟ if you want a preview of the accounts and amounts posted.

If Create posting is flagged ( ) financial accounting document will be created in effective.

Here is an example of document posted in effective :

P/L account „EXCHANGE PROFIT ON VALUATION” is posted against B/S Account “TRADE CREDITORS CURRENCY ADJUSTMENT”.

A reversal document is posted the day after in case you use a valuation area with reverse.

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AUTOMATIC ADJUSTMENT FOR CLEARED ITEMS REVALUATED WITH DELTA LOGIC:

At revaluation the system also posts automatically an adjustment related to the already cleared items that were revaluated, before the clearing, with delta logic without reversal.

This happens because at the item clearing date (clearing of GL account, incoming payment, outgoing payment etc…) the system always calculates and posts the exchange difference without considering if the item cleared had been already revaluated in the past, so that an adjustment still needs to be posted and this happens when a next revaluation is executed.

Example :

Local currency MYR. Document currency USD

1) a vendor invoice is posted in the system on 01.05.2011

Invoice of 1000 USD = 2000 MYR

Debit EXPENSES 1000 USD (2000 MYR)

Credit VENDOR 1000 USD (2000 MYR)

2) the item is revaluated on 31.12.2011 with FAGL_FC_VAL transaction for 200 MYR (exch. rate : 1000 USD = 2200 MYR) without reverse (year-end closing valuation).

Debit account 51740003 EXCH LOSS FROM VALUATION 200 MYR

Credit account 24070002 TRADE CRED. FOR CURRENCY ADJUSTMENT 200 MYR

3) the item is cleared on 15.01.2012 (exch. rate : 1000 USD = 2500 MYR)

Debit VENDOR 1000 USD (2000 MYR)

Credit BANK 1000 USD (2500 MYR)

Debit EXCH. DIFFERENCE ON PURCHASES 0 USD (500 MYR)

500 MYR is the DIFFERENCE BETWEEN HISTORICAL AMOUNT (2000 MYR) AND THE AMOUNT AT CLEARING DATE (2500 MYR). THE SYSTEM CALCULATES IT WITHOUT CONSIDERING THE PREVIOUS REVALUATION OF 200 MYR.

4) At the next revaluation, for example on 31.12.2012, the system will post all the open items revaluation but also an adjustment for the items already cleared :

Debit TRADE CRED. FOR CURRENCY ADJUSTMENT 200 MYR

Credit EXCH. DIFFERENCE ON PURCHASES 200 MYR

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A list of the cleared items for which the adjustment is posted is available if you click on „Cleared items‟ after FAGL_FC_VAL execution.

Preview of related postings is available with button „Postings‟.

SIAE User Manual FI - Foreign Currency Valuation.pdf

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