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A very important step in financial period end closing is calculating "Unrealized Foreign Currency Differences" and posting an adjustment entry.


  • What's the difference between realized and unrealized foreign currency differences?

  • What's the related financial entry that must be posted at the end of every financial period?

  • How does foreign currency valuation work in SAP?


Check the below video for:

  1. Full explanation of the business concept and financial entries

  2. Full demo of the process of SAP S4HANA which is also applicable to ECC



It's very important to include the "Unrealized Foreign Currency Valuation" in the Finance Period End Closing process to comply with the financial standards!


Let me know your experience, and if there's anything I should add to this blog.


Help me raise awareness about the importance of SCN and SAP Blogs by sharing this blog with your network


Thank you, see you in the next blog post 😉
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