FAGL - FC - VAL - Delta Logic Foreign Currency Valuation - ERP Financials - SCN Wiki

10/20/2014
FAGL_FC_VAL: Delta Logic Foreign Currency Valuation - ERP Financials - SCN Wiki
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ERP Financials / / Foreign Currency Valuation
FAGL_FC_VAL: Delta Logic Foreign Currency Valuation

Added by Cora Phelan, last edited by Cora Phelan on Jan 08, 2014
Purpose
This wiki provides an outline of Delta Logic using the new GL report FAGL_FC_VALUATION in accordance with note 960661 - FAGL_FC_VAL: Delta Logic Foreign Currency Valuation
Overview
In classic G/L it is possible with transaction F.05 (report SAPF100) (selection "balance sheet preparation valuation) to save the valuation difference in the document (BSEG-BDIFF). In this case, the
valuation document is not reversed in the next period.
The use of the Balance Sheet preparation flag is not available in new GL report FAGL_FC_VALUATION. Due to a legal requirement for some countries, a solution for the delta logic has been developed
(note 960661).
As referenced in note 960661
In certain countries you are not allowed to reverse year-end foreign currency valuation postings in the following year. The Program for foreign currency valuation in ERP, FAGL_FC_VALUATION, always
reverses the valuation postings made for open items.
Solution
To provide a solution for countries that do not allow the reversal of foreign currency valuations in the following year, the following solution has been designed:
1. Valuations are still made using valuation areas. However, a valuation area can designated as a valuation area using delta logic. That is, a reversal does not take place for the item valuated.
2. During clearing, the entire exchange rate difference is posted as a realized gain or loss. The valuation difference is not taken into consideration.
3. The next valuation run then reverses the total of the valuation postings for the line items cleared since the last valuation run. The amounts are reversed from the realized exchange gain and/or loss
accounts
Example
Please be clear this is only an example. Customizing can vary according to own legal requirements.
General Customizing:
Company code/Local currency = USD
Implementation Guide: Financial accounting (New) -> Financial accounting global settings (New) -> Global Parameters for company code - Transaction code OBY6
http://wiki.scn.sap.com/wiki/display/ERPFI/FAGL_FC_VAL%3A+Delta+Logic+Foreign+Currency+Valuation
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Exchange rate at time of posting invoice

Implementation Guide: SAP NetWeaver -> General settings -> Currencies (check all settings) -> Enter Exchange rates (Transaction code OB08)
Create Vendor invoice via FB60 - Display posted invoice via FB03
Display of valuation area customizing for Foreign currency valuation

Implementation Guide: Financial Accounting (New) -> General Ledger Accounting (New) -> Periodic Processing -> Valuate -> Define Valuation Areas
Implementation Guide:Financial Accounting (New) -> General Ledger Accounting (New) -> Periodic Processing -> Valuate -> Activate Delta Logic (SM30 view
V_FAGL_FCV_DELTA)
(Please note this is only example, the customizing as referenced below for delta Posting Logic can vary according to own legal requirements.)
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Exchange rate at time of carrying out foreign currency valuation
To perform a foreign currency valuation, from the SAP Easy Access Screen, choose Accounting -> Financial Accounting -> General ledger/Accounts Receivable/Accounts Payable -> Periodic processing > Closing -> Valuate -> Foreign Currency Valuation (New) Transaction FAGL_FC_VAL ( In this example Transaction FAGL_FC_VAL is started using valuation program FAGL_FCV)
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Execute
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Click on Postings button
A reversal does not take place for the item valuated.
To create valuation documents, the radio button for create postings must selected on the initial screen of the foreign currency valuation, tab Postings. If you execute without create postings selected as
above this means that program is run in test mode.
Execute Foreign currency valuation program again with same selection however with create postings selected so that foreign currency valuation document is created.
View document created via FB03
The Update run is saved in a log: table FAGL_BSBW_HISTRY. See same via transaction SE16.
Enter invoice document number in table FAGL_BSWB_HISTRY and execute.
If you click on the F1 help on the field FCV_STATUS (Status:FC Valuation) you will see the below text displayed for status of Foreign Currency Valuation.
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Exchange rate at time of clearing
Create Payment document via F-53

Display document posted via FB03
During clearing, the entire exchange rate difference is posted as a realized gain or loss. The valuation difference is not taken into consideration
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The next valuation run then reverses the total of the valuation postings for the line items cleared since the last valuation run. The amounts are reversed from the realized exchange gain and/or loss
accounts.
In this example the company code attribute "Indicator: Post translations for exchange rate differences" (T001-XKDFT) is selected. ( Please be clear this is only an example, the customzing for same can
vary according to own legal requirements). The customizing for this field can be found via transaction OB66. Below you can see the F1 help for the indicator Post Translation
Please see Note 1462080 - FAGL_FC_VALUATION: Translation postings (T001-XKDFT) in this regard.
The corresponding account determination settings need to be referenced in transaction OBA1. See section Translation highlighted below. This is used to transfer the unrealized exchange rate differences to
the realized difference account.
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Execute next valuation run
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Execute
Click on Cleared items
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Use Green Arrow to back out to main screen and then click on Posting Button
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In this case the unrealized exchange rate difference amount is cleared from the unrealized gain/loss to the realized gain loss.
Execute Foreign currency valuation program again with same selection however with create postings selected so that foreign currency valuation document is created.
View document created via FB03
Review entry in table FAGL_BSBW_HISTRY. See same via transaction SE16.

Enter invoice document number in table FAGL_BSWB_HISTRY and execute.
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You will note that the FCV_STATUS field has changed from V to C. See F1 help again with regard to this field.
Related Content
Related Documents
Related SAP Notes/KBA
Note 960661 - FAGL_FC_VAL: Delta Logic Foreign Currency Valuation
Note 1462080 - FAGL_FC_VALUATION: Translation postings (T001-XKDFT)
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10/20/2014

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ERP Financials / / Foreign Currency Valuation

FAGL_FC_VAL: Delta Logic Foreign Currency Valuation

Exchange rate at time of posting invoice

Display of valuation area customizing for Foreign currency valuation

Exchange rate at time of carrying out foreign currency valuation

Click on Postings button

A reversal does not take place for the item valuated.

Exchange rate at time of clearing

Create Payment document via F-53

Execute next valuation run

Click on Cleared items

Review entry in table FAGL_BSBW_HISTRY. See same via transaction SE16.

SAP Help Portal

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