Fi foreign currency valuation: valuation area

[former_member654515]

Hello,

I don't understand the valuation area as a selection field.

Per this screenshot:

https://erproof.com/wp-content/uploads/2017/06/word-image-392.png

Why is valuation area a *selector* for gl accounts/items? It groups together the *method* and *currency* **to actually revalue**, so it doesn't *select* anything.

Thank you,

[former_member221103]

Hi,

Assignment of valuation method with valuation area transfers the properties in Valuation Area. If different settings are required based on business needs then Valuation methods will be different. But in order to use such settings you need to assign it to Valuation Area. Very Basic example - Business wants to perform valuation based on two different exchange rates types. In this case you need to create two different valuation methods and need to have different valuation areas.

Regards,

Abhinav Malik