GRIR FX Valuation Treatment
We are running transaction F.05 (program SAPF100) to re-measure FX movements on our GL Accounts. We have chosen the option to 'Evaluate GR/IR Account'. We noticed that after the program had been executed the system performs an automatic reversal of the postings for the GRIR account on the first posting date of the new month.
Looking at the program documentation for SAPF100, it states the following in relation to the GRIR account:
Reset all valuation postings if the valuation does not affect the financial statements.
Always applies for GR/IR accounts
However, we do not understand why the program would reverse the entries on the GRIR account. Our accountants say that the GRIR account does display out on the Financial Statements and therefore any FX remeasurement on this account should display out on the Statements.
Could you please provide detailed logic or the business reasons about why the SAPF100 program performs an automatic reversal of GRIR Foreign Exchange transactions please?
Thanks for your help.