Foreign Currency valuation

[jadhunna09]

We will need guidance on the Advance FX valuation in S4 HANA. Mainly to understand the real business challenges of this solution vs Classic Revaluation.

I have written down few points below as per business requirement. Kindly look into this and provide your valuable feedback.

1. We need some guidance around setting up different valuation rules for different GL groups to have different Account determination (For example Above Gross margin and Below Gross Margin). It was easy in Classic FX via Valuation areas. Here we have semantic tags for the FSV’s that possibly we can use which we would like to understand a bit more from your end.
2. How to post/activate custom field assignments for FX valuation. Looks like this option is more classic valuation. Want to know your views
3. Inheritance of PC for the FX gain loss accounts.
4. Segregate doc type for valuation postings – looks not possible.
5. Any other challenges you faced while setting it up.

[umasaral]

Hi 

Please check the below Advance FX valuation in S4 HANA versus Classic Revaluation:

1. Valuation Rules for GL Groups: In S4 HANA, you can use semantic tags in Financial Statement Versions (FSVs) to create flexible reporting. However, setting up different valuation rules for GL groups may require additional configuration compared to the straightforward valuation areas in Classic FX.

2. Custom Field Assignments: Activating custom fields for FX valuation can be complex. Unlike Classic valuation, where specific options are more straightforward, S4 HANA may involve more development work to meet unique business requirements.

3. Inheritance of Profit Centers: Inheritance of profit centers for FX gain/loss accounts generally works similarly in S4 HANA, but ensure proper account determination settings are in place to maintain accuracy.

4. Document Types for Valuation Postings: Segregating document types for valuation postings is limited in S4 HANA. You may need to implement alternative strategies to differentiate postings.

5. Additional Challenges: Common challenges include adapting to new configurations, ensuring proper integration with other modules, and understanding the impact of new features on existing processes.