Foreign currency revaluation for GR/IR account

[Former Member]

Hi Friends,

Need your help. My client is facing the below issue.

he is facing issue with transaction F.13 automatic clearing of GRIR account for company code XXXX.

The problem is that the system is reversing the Foreign exchange amount posted in December 2010 and posting it as realized Foreign Exchange, therefore GRIR account is not beeing valuated with USD convertion at the month end closing.

Could you please throw some light on this issue

Thanks N regards,

[Former Member]

I think there is some issue with the process, normally vendor/customer reconciliation account or some liability assets related account which has impact due to foreign currency rate changes needs to be revaluated. I don't understand why you have set up foreign currency valuation for GR/IR account, these are intermediatory account which reflects in system between for example GR and IR.

I also think that you need more information on foreign currency valuation, basically it happens on a particular key date and gets reversed on key date + 1, because revaluation is only required on a key date for reporting purposes. on the next day it get reversed and actual loss or profit on foreign currency only gets booked on realization.

Hope this helps!!!

Murlidhar Khatri