FOREIGN CURRENCY REVALUATION

Check exchange rate types

Type
Bank buying rate
Bank selling rate
Average Rate

Purpose
Exports purpose
Imports/Exp
MM/SD users only

Type Defined by SAP

G Type
B Type
M Type

PATH: SPROSAP Net weaver General settingsCurrenciesCheck exchange

rate types
Select Position Button
B
G
M
Exchange Rate Type

Check above exchange rates given by SAP.

Define Translation Ratios for Currency Translation

Here we give conversion factors for 2 currencies
Foreign Currency: INR
USD
1
:1
EUR
1
:1
GBP
1
:1
Once we follow one conversion factor, follow continuously for the all the years.
Dont change in between, if you change it will give the wrong result.
Conversion factor given as Client level.
PATH: same as above
Ignore the warning message & press yes, select new entries button

Save Enter 2 times save your request.

Enter Exchange Rates
This is called Forex Table, we can enter Foreign exchanges rates, daily, weekly,
monthly, for each type we can enter only one rate in a day.
PATH: Same Path as above(Next step to Last Path)

Save & press Enter save your request.

Indirect Quot is for INR to USD Rate.

Exchange Rate For End User Area(S_BCE_68000174)

PATH AccountingFinancial AccountingGeneral LedgerEnvironment
Currency SettingsEnter Translation Rates
Select position Button

Ex.Rate Type
From Currency
To Currency
Valid From

G
USD
INR
01.04.2014

ENTER

Foreign Currency Postings: Two types of Foreign Currency Postings

Option 1: Entered exchange rates at the time of postings
Option 2:We maintain Exchange rates in Table.
To Enter Default Exchange Rate type based on Document Type.
Doc. Type
SA
KR
RE
DR
RV

Nature of Document
GL Postings
FI Purchase
MM Purchase
FI Sales
SD Sales

Type of Ex. Rate

B
B
B
B
B

Note: If we do not specify Ex Rate Type, System will take automatically

M(Average)
To enter exchange rate type in Document types in OBA7.
FC Balance Revaluation
Considered if you are making invoice your customer @ $1000at current date, at the
time of invoice Exchange rate is $55 but if you receive payment from customer after
one month at the time Exchange rate is $60 so the gain/loss should be revaluate as per
Accounting Standard.
The difference should be transferred Exchange to rate gain/loss and same charged to
P&L Account.

Customization of FC Balance Revaluation

Step:1 Creation of 3 GL Master

Account Name
SBI FC Term Loan A/C
Exchange Gain A/C
Exchange Loss A/C

Account Group
Secured Loans
Other Income
Administration

Use T Code FS00 to create above GL account.

Step:2 Define Accounting Principles
SPROFinancial Accounting(New)--Financial A/C Global Settings(New)--Ledger
Parallel AccountingDefine Accounting Principles
Select New Entries Button
A/C Principle: BHEL
Description: Indian Accounting Standards
SAVE and Press enter save in your request.

Step:3 Assign Accounting Principles to Ledger Groups

Same Path(Next Level to last path)
Select New Entries Button
A/C Principle: BHEL
Target Ledger Group: OL
SAVE and Press enter save in your request.

Step:4 Define Valuation Methods

SPROFinancial Accounting(New)--GL A/C (New)--Periodic Processing
ValuateDefine Valuation Methods
Select New Entries Button
Valuation Method: BHEL
Description: FC Valuation for BHEL(Bank Selling Method)
Select Always evaluate
Document Type: SA
ExchRate Type for Debit Bal: B
ExchRate Type for Credit Bal: B
Select Determination Exchange Rate for A/C Balance ratio button
SAVE and Press enter save in your request.

Step:5 Define Valuation Area

Same Path(Next Line to Old Path)
Select New Entries Button
Valuation Area: BH
Valuation Method: BHEL
Currency Type: Company Code Currency
SAVE and Press enter save in your request.

Step:6 Assign Valuation Area & Accounting Principles

Same Path(Next Line to Old Path)
Select New Entries Button
Valuation Area: BH
Accounting Principles: BHEL
SAVE and Press enter save in your request.

Step:7 Prepare Automatic Postings for Foreign Currency Valuation

SPROFinancial Accounting(New)--GL A/C (New)--Periodic Processing
ValuateFC Valuation Prepare Automatic Postings for Foreign Currency
Valuation(TC=OBA1)
Double click on Exch. Rate Diff. using Exch. Rate Key
Chart of Accounts: BHEL
Select Right Arrow @ down & change the valuation area button BH-- ENTER

SAVE and Press enter save in your request.

Step:8 Assign Exchange Rate Difference Key in loan A/C (FS00)

GL AC: 100300
COMPANY CODE: BHEL
From Menu GL Account Change
Select Control Data Tab
Exchange rate Diff Key: USD SAVE.

END USER AREA FOR FC VALUATION