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Foreign Currency Valuation for Balance Sheet Accounts

Former Member
0 Kudos

Dear All,

Please tell me,difference between the realized Exchange loss and unrealized exchange loss.

What is the useful of the reversal check box in foreign currency valuation ( F.05).

it is compulsory to select the reversal check box.

Accepted Solutions (1)

Accepted Solutions (1)

former_member200240
Active Contributor
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Hi

Realized gain/loss- If you have received the forex, then the difference between the exchange rate prevailed at the time of booking the Invoice and the date on which you received forex.

Unrealized- You are yet to receive forex, hence unrealized

Reversal Check box - Reason being you valuate your profitability at the end of a posting period. Forex gain/loss (In many countries only Loss is recognized) needs to be recognized at the end of period. In case the forex is not yet realized at the end of the period, you need to reverse on the 1st day of the next period.

S Jayaram

Former Member
0 Kudos

Thank u for ur useful answer about FCV.

I want to know, if unrealized loss/gain will automatically reverse in the first day of the next month or we will reverese manually

Plese give me the answer

Regards

Sreenu.

Answers (0)