Foreign corency

[Former Member]

Hi all

explain me foreign currency configuration settings, how to define forex gain or loss gl accounts

[Former Member]

Hi,

Define exchange rates.

Define expense and revenue account for exchange rate differences.

Define valuation method for OPEN ITEM W/O UPDATE and OPEN ITEM WITH UPDATE.

If the valuation is carried out for an account, which managed in open item management,you must define the exchange rate gain nad loss account for reconcilition a/c in subledger a/cs.

Regards

Raju

Hi all

>

> explain me foreign currency configuration settings,

> how to define forex gain or loss gl accounts

[Former Member]

give me the step by step please urgent

[Former Member]

Hi

Foreign Currency Valuation

Valuating Foreign Currency Balance Sheet Accounts

Use

To create your balance sheet, you have to valuate the foreign currency balance sheet accounts that have been posted in a foreign currency.

In addition to the house currency accounts, you can define foreign currency balance sheet accounts. You create these accounts, for example, to process foreign currency payment transactions. The foreign currency balance sheet account is the equivalent to a foreign exchange account at your bank. For this reason, you create one foreign currency balance sheet account for each foreign exchange account.

Create the GL accounts required to be maintained in the Foreign Currency and assign the same in the customizing settings to post the revaluation loss / gain.

Change the General Ledger Account Currency to USD from INR to the following GL Account

12120000 Secured Loans - Foreign Curr Loan fm Fin inst (T.code FS00)

Accounts for Exchange Rate Differences

To valuate the balances in the foreign currency balance sheet accounts, you merely require one or more expense and revenue accounts for the exchange rate differences. The result of the valuation is then posted to the valuated account immediately. Gains and losses from exchange rate fluctuations are shown in separate accounts. To valuate foreign currency balances, you define expense accounts and revenue accounts under a key* for posting the exchange rate differences that result from the valuation.

*Exchange rate difference key

(See also the Customizing documentation).

Prerequisite

The exchange rate table must be maintained on a regular basis (transaction OB08).

Valuation methods:

When valuating the accounts, the program requires a number of specifications, such as the exchange rate and procedure that are to be used for the valuation. You can use valuation methods to group these basic specifications together so that you do not have to keep reentering them. You enter the required valuation method during the valuation run.

EVR = Always valuate

Process Flow

To ensure that foreign currencies can be valuated, amounts must have been posted to the appropriate bank accounts.

1. Access the activity using one of the following navigation options:

Menu path Accounting  Financial Accounting  General Ledger  Document Entry  General Posting

Transaction code F-02

2. Enter the required data in the screen.

Field name User action and values Comment

Document Date Today's date

Type SA

Company Code BP01

Posting Date Today's date

Currency USD

Rate 46

Reference AB-BewFWB1

PstKy 40

Account 58040000

Enter

Amount 10000

Tax code V0 Enter if required based on GL Account

Cost Center 1101 Enter if required based on GL Account

Text Foreign currency valuation – Document

PstKy 50

Account 12120000- Secured Loans - Foreign Curr Loan fm Fin inst

Enter

Amount

10000

Value Date Today's date System Proposes based on the field status of the GL Account, if required enter, otherwise ignore the field

Text Foreign currency valuation - Document Text can be freely maintainable by the user as a narration to the line item

3. Post the document.

If required, make further postings in the same way using higher or lower exchange rates and by swapping the debit/credit account assignments (swap the posting keys).

Performing the Valuation

1. Access the activity using one of the following navigation options:

Menu path Accounting  Financial Accounting  General Ledger  Periodic Processing  Closing  Valuate  Foreign Currency Valuation

Transaction code F.05

2. Enter the on the Foreign Currency Valuation screen enter the following required data:

Field name User action and values Comment

Company Code BP01

Evaluation Key Date The end of current month. Date of the valuation

Valuation Method EVR Always valuate

Valuation in Curr.Type 10 Company code currency

Postings Tab

Bal. Sheet preparation Valuation Yes/ No Select this parameter, if you want to carry out a subsequent debit/credit of the balance sheet / P&L account in addition to the valuation

Creating Postings Yes / No If not activated (no), a test run is carried out.

G/L Balances Tab

Activate “Valuate G/L Account Balances” Select the check box

G/L Account 12120000

Other Tab List Variant In this field, you can personalize the proposal list.

Execute

Valuating Open Items

Use

When foreign currencies are valuated, all the open items that were posted in a foreign currency are valuated:

The valuation is based on the individual open account items in a foreign currency, that is, each open account item in a foreign currency is valuated individually.

The accounts that are valuated are listed in the Customizing documentation.

Fixed-Term and Foreign Exchange Transactions:

Fixed deposit accounts (open item management) in foreign currencies are valuated in SAP FI-TR.

Prerequisites

• The exchange rate table must be maintained (transaction OB08). For the example below, the indirect quotation exchange rate in the table of currency exchange rates between USD and INR must not be equals 46 on the day of the valuation.

• Valuation method(s) must be defined (transaction OB59).

EVR =Always valuate

• Adjustment account* for each customer and vendor reconciliation account.

• In a balance sheet item, adjustment accounts are displayed along with the relevant

reconciliation accounts.

• Account determination must be defined (transaction OBA1).

Expense and revenue accounts exist for unrealized exchange rate differences.

Expense and revenue accounts exist for realized exchange rate differences.

(For more information, see the Customizing documentation.)

Process Flow

Before foreign currencies for open items can be valuated, the appropriate foreign currency postings must exist in the system.

If none exist, post a vendor invoice in a foreign currency using the procedure described in Posting Invoices (Accounts Payable Accounting) (vendor A1000, amount is 1000 USD). Please note: Posting the document in USD – specified exchange rate 45 – so that the subsequent transactions can be performed. Document 1000000xx was posted in company code BP01 with USD

Performing the Foreign Currency Valuation

1. Access the activity using one of the following navigation options:

Menu path Accounting  Financial Accounting  General Ledger  Periodic Processing  Closing  Valuate  Foreign Currency Valuation

Transaction code F.05

2. On the Foreign Currency Valuation screen, enter the following data:

Field name User action and values Comment

Company Code BP01

Evaluation Key Date The end of current month. Documents that are not cleared on this date or whose clearing date is after this date are taken into account.

Valuation Method EVR Always valuate

Valuation in Curr.Type 10 Company code currency

Bal.Sheet Preparation Valuatn Yes / No If selected, an update occurs in the document.

Creating Postings Yes / No

Same as Bal.Sheet Preparation Valuatn Test or update run (documents are posted).

Enter the document date, posting date and other details

Selections:

Valuate Vendor Open Items

Valuate Customer Open Items Activate Select vendor A1000

Other List Variant In this field, you can personalize the proposal list.

Execute

• The total difference of all the open account items is posted to a balance sheet adjustment account, thereby retaining the original account balance.

• The gains or losses from exchange rate fluctuations from the valuation are entered as offsetting entries in separate expense and revenue accounts for exchange rate differences.

• If you have activated Bal.Sheet Preparation Valuatn, the valuation difference is entered in the document.

• When the open items are cleared, the system cancels the valuation before creating and then posting the realized exchange rate difference.

If it is useful reward points

Reagrds

Raju.k

[Former Member]

hi i need configuration steps, which gl accounts we have to create for forex gain or loss, and i need all steps pls explan

thanks in advance