F.05 Foreign currency Valuation run - Incorrect postings

[Former Member]

Hello Experts,

When I run the F.05 transaction for foreign currecy valuation for open vendor items as well as foreign currency designated GL account balances, at month end, the postings to the Realized Gain/Loss accounts or the Unrealized Gain/Loss accounts are being posted incorrectly.

When I look at the posting for Bank GL accounts or the Vendor open item accounts, the posting values ought to be the realized or unrealized Gain/Loss amounts against the accounts, but the postings show the actual the revalued total $ amounts that are calculated with the month end foreign currency rate and not the difference( which is the difference due to exchange rate change).

Can some one help me how to get the actual Gain/Loss amounts posted.

Thanks in advance,

Vijayanth

[Former Member]

Hi Vijay,

Did you check the posting results by clicking on the "posting" button?

There you could get the actual Gain/Loss amounts posted.

Best regards,

Ivana

[Former Member]

Hi

While payment or clearing open item with different rates system shall post the entry for Unreliazied gain/loss.

When you look at automatic account determination for Exch Rate diff we have two things

1. Exchange rate differenes reliazed

System looks for this setting when we try to clear open items with different exchange rates.

2. Valuation

system looks for this setting when we doing period end processing F.05. It valuates the Current assest & liabilities (which are in foreing currency) with the rate of the particular date.

This is normally reversed in the next period. The accounting entry shall be

Unreliazied Gain/Loss---Dr (P&L)

To Adjustment for Foreing Exchange --- Cr (B/S)

Thanks

Colin Thomas

[Former Member]

Pls. check this out

To valuate your foreign currency balance sheet accounts, you must define certain accounts. You define these accounts per reconciliation account:

Expense and revenue accounts for the exchange rate differences from the valuation

A financial statement adjustment account, reported in one financial statement item with the valuated account. The valuation is therefore not carried out in the account itself, instead, it is posted to a separate account. This is necessary for example, since the accounts for receivables and payables are only updated by postings to the customer and vendor accounts. However, the valuation must be carried out in the G/L account area for the relevant reconciliation accounts.

You define the required amounts in Customizing under Financial Accounting ® General Ledger Accounting/Accounts Receivable and Accounts Payable ® Business Transactions ® Closing ® Valuating ® Foreign Currency Valuation ® Prepare Automatic Postings for Foreign Currency Valuation.