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Balance sheet adjustment account for Foreign Currency Valuation

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Hi all,

I know that we enter AP /AR balance sheet adjustment account for Open items account when we configure for Foreign currency valuation with Tcode OBA1 and KDF. I wanted to know what account can I enter in that field for other balance sheet account which are not open item managed?

Also, Do we valuate GR/IR accounts in foreign currency valuation?? If yes, what balance sheet adjustment account do we enter for those accounts?

Thank you.

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Answers (3)

Answers (3)

Former Member
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Hello Anthony

I am sorry for that but u have to do manage that in Open Item Basis as the balance will be reversed in the very next day( opening day of the next period)

It will be gain converted to forign currency balance.

So i think if u will maintain this account as not opn item basis then u cant reverse it again

Anup

Former Member
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Hello Anthony

In OBA1 for KDF key u can create the GL accaount for Balancesheet Adjustment account

<b>Assets,Open Item Mangement ,lne item Display</b>Systm calculates the currency( foreign) in hand at the end of the period end or year end to company code curency

No need to valuate the GRIR account in foreign currency as system will calculate it parallel currency what u have alredy defined.

asign valuable points if the answer is useful

regards

Anup

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Anup,

I know I have to enter the balance sheet adjustment account in OBA1 KDF. But I wanted to know what kind of BS Adj a/c should I enter for balance sheet s/c which are not OI managed. If you can provide example of what kind of accounts should I enter there.

Former Member
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Hi,

For the Items with no Openitem Management the Key needs to be created in KDB.

Create a BS A/c as " Forgien Currency Valuation-Others A/c" for accounts with no Open Item mgt. and for GR/IR account.

Pl. note that all these entries will get reversed in the subsequent period.

Pl. revert immediately in case issue persists.

Thanks

Vijay

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Vijay,

I really appreciate you taking the time to respond to my qureies. If I read your suggestions correctly,

1. I would need an Account : "X valuation-Others" as the BS Adjustment account for the BS GL a/c's wich are not OI managed

2. I would need another similar a/c for GR/IR account.

3. Do we really need to include GR/IR accoints in FX valuation???

Former Member
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Hi,

Yes u r understanding is correct.

GR/IR accounts needs to be valued b'cos these represent the value of goods received and invoice verification is yet to be carried.

Thanks

Vijay

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Vijay ,

Thnak you for your reply. For BS a/c's which are not OI managed do I actually need to configure the OBA1 KDF segment or just the KDB should work fine?

I know I have to configure KDB and KDF for OI's but wasn't sure about the other BS a/c's

Former Member
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HI

Following is the message given by SAP for KDF BS A/c.

<b>Account to which the receivables and/or payables adjustment is posted during the foreign currency valuation of open items.</b>

Hence i think u need not give BS a/c for the BS A/c withich are not OPI mgt.

Thanks,

Vijay

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Vijay,

So we configure OBA1 KDF for open items only. For rest of the accounts, We just configure OBBA1 kdb? Am I right?

By any chance do you have any documentation for configuration of FX valuation?

Former Member
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Yes u r right and the SAP help supports this.

Sorry, i do not have any documentation on FX Valuation. I think you can search on the web.

Thanks

Vijay

Former Member
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HI,

The valuation of <b>foreign currency balances</b> requires a special key that is assigned the gain and loss accounts for posting any exchange rate differences that occur during valuation. You can freely define this key. You then enter it in the master records of the accounts that you want to valuate. To post the differences that are determined from a group of G/L accounts to the same gain or loss accounts, enter the same key for all these G/L accounts.

Create the Create here with Tcode OBA1 and KDB-Exch. Rate Diff. using Exch. Rate Key

And assign this in the GL account master in the Control Tab.

Thanks

Vijay

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Vijay,

Thankvyou for your response but, I am talking about the balance sheet adjustment account firld in the Tcode OBA1 kdf field.

What account should I enter there for Balance sheet accounts which are not Open items managed and for GR/IR a/c's