Foreign exchange gain or loss configuration

[Former Member]

Dear experts,

While configuring for foreign exchange gain or loss in OBA1, we are giving accounts for realized gain or loss, valuation gain or loss and balance sheet adj accout. Here why we are giving balance sheet adj account? what is the use of this account?

Regards

Jay

[Former Member]

hi,

regarding forex run system will post the exchange loss or gain based on the outstanding amount in the same period and it will reverse the same in the next period begining.

govind.

[Former Member]

Hi:

realized gain or loss: when you clearing account with open items in foreign currency, the account is filled with the foreign exchange difference;

valuation gain or loss: when you valuate accounts in foreing currency, the difference of f.e. is filled in this account.

balance sheet adj accout: is the contra account of the above account. like:

DR: valueation loss account 100

CR: balance sheet adj account 100

[Former Member]

Foreign currency balance sheet accounts are valuated as part of the foreign currency valuation.

The result of the valuation is posted to the valuated account or to a adjustment account. 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.

[Former Member]

Hi

While ravaluating forex items, system would post the adjustement to receivables/payables in this temporary clearing account

Dr/Cr P&L a/c (for forex gain/loss)

Contra B/S adjustment a/c

Thank You,

Edited by: SAP Student on Mar 25, 2009 7:34 AM