Foreign currency valuation

[Former Member]

Hellow,

i am implementing sap fi to a european company with a subsidiary in India and we have some troubles with foreign currency valuation transaction, fagl_fc_val.

We don´t understand the postings proposed by the system.

We have seen that the system updates postings in eur,usd,etc.. currencys different from rupees, and we guess this is the right way of working.

But when we try to valuate some liability accounts the system does not follow that rule.

How does the system works? what postings should be valuated?

Thank you!!

[Former Member · Accepted solution]

Hi,

The foreign currency valuation will cover:

- GL balance that are not managed on an open item

- Open Items that are open on the key date are valuated in foreign currency. (Receivable, payable items)

You can perform the valuation in local currency, (company code currency), or a parallel currency (for example, group currency), it based on Valuation area you filled in Selection screen.

For your issue, can you give more information?

[Former Member · Accepted solution]

Thanks for your response Julie,

we have two ledgers, a leader one for the group and an additional local ledger for India.

So i have create two valuation areas:

• Group ledger, group currency (euro) : KG
• Local ledger, local currency (rupee) : YL

Based on this , i guess when executing transaction for KG , the system will valuate postings in a different currency from euro.

And the same when executing transaction for YL, the system will valuate postings in a different currency from rupee.

Is this correct?

I have seen this is the way of working in associated accounts, and open item accounts and some GL balances.

But there are some exceptions in GL balances, where the system is valuating documents posted in the same currency. For example, executing KG the sysetm valuates a document posted in euros.

Best regards

[Former Member · Accepted solution]

Hi,

Your understanding is correct.

Can you have me to check these accounts master data about some fields:

- Account currency

- Only balance in local curr checkbox

- Open Item management checkbox

- Line item display check box

[Former Member · Accepted solution]

Hi,

here you have the features of one some accounts that not follow the rule:

- Account currency: INR (rupee)

- Only balance in local curr checkbox: yes

- Open Item management checkbox:no

- Line item display check box:yes

do you think the reason could be in the only balance in local currency checkbox?

Thanks