F.05 - Foreign Currency Valuation.docVIP

F.05 - Foreign Currency Valuation Functionality In order to create your financial statements, you have to carry out a foreign currency valuation. This process valuates all transactions posted in foreign currency per company code and parallel currency transactions. To perform the valuation you should use an exchange rate for the end of the month. This valuation covers the following accounts and items: Foreign currency balance sheet accounts - the G/L accounts that you run in foreign currency. The balances of the G/L accounts in foreign currency are valuated. Open items posted in foreign currency. The line items in foreign currency are valuated. You have the following options for the foreign currency valuation: You can carry out the valuation in local currency, (company code currency), You can valuate in parallel currency (for example, group currency). You can also use different valuation methods (for example, lowest value principle). The posting of valuation is done by the batch input session. It is recommended that you run each valuation separately, so e.g. you will create a separated batch input for customer open items, then another one for vendors and another one for GL. Scenario Before year-end closing you need to perform a foreign currency valuation for GL, customer and vendor open items. To perform valuation of balances in GL (for GL accounts with no open item management) your have to change your selection to activate the related fields. Requirements GL, Customer and Vendor Master, the accounting transactions posted in foreign currencies (different than company code currency). Defined in Customizing GL accounts for valuation postings. Menu Path Accounting ( Financial Accounting ( General Ledger ( Periodic Processing ( Closing ( Valuate ( F.05 - Foreign Currency Valuation Transaction Code F.05 1. Double click on F.05 - Foreign Currency Valuation. Foreign Currency Valuation 2. Update the following fields: Field Nam