Foreign currency revaluation using customer or vendor accounts

[Former Member]

Dear friends,

I am new to the forum and I wonder whether there is a foreign currency revaluation procedure (besides SAPF100) which can generate revaluation postings using customer or vendor accounts directly, instead of G/L accounts.

Supposedly for example, we had a customer Denmark National Bank, with id 400006A, and this account had a debit balance of 10000,00 EUR – local currency, which would be 750000,00 DKK – foreign currency (if for instance, the original rate was 7,50 DKK / EUR).

At the time I run FC valuation for customer 400006A, the currency rate could be for example 8,00 DKK/EUR.

Thus, the new LC amount that arises after valuation : 9375,00 EUR (which is 75000,00 DKK / 8,00).

In this way, I would have an amount loss of: 10000,00 – 9375,00 = 625,00 EUR.

Then, if we were to apply such customer valuation based on business area, we could probably have the following posting:

PKey Bus. Area Account FC amount (DKK) LC amount (EUR)

17 0017 400006A 75000,00 10000,00

04 0017 400006A 75000,00 9375,00

40 0017 6910000000 0,00 625,00

In this way, customer 400006A is credited with an amount of 10000,00 EUR and balances out.

A new balance of 9375,00 EUR is created after valuation, and an amount loss of 625,00 is posted to G/L Main Loss Account 6910000000 (or to a G/L profit account in case of an amount gain).

Program SAPF100 works in a slightly different way, in the sense that it posts valuation differences in G/L accounts rather than to customer or vendor accounts directly in the way that was described above.

Any ideas or suggestions would be appreciated.

[daniel_carvalho · Accepted solution]

Hi Orestis,

I imagine this is correct, because for the vendors/customers, we have the reconciliation account. In the reconciliation account, we should record only the open and closed items (I can't see any process that would record foreign currency valuation differences in the reconciliation account).

Regards,

Daniel Carvalho.