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foreign currency valuation

Former Member
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Hello guys

I am facing the following problem when i am trying to post the valuated foreign currency.

WRONG ACCOUNT DETERMINATION for reconciliation accounts.

what does that mean........please help in this issue.......

many thanks in advance.

venkat.

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
0 Kudos

Foreign Currency Valuation

Valuating Open Items

Use

When foreign currencies are valuated, all the OPEN ITEMS that were posted in a foreign currency are valuated:

The valuation is based on the individual open account items in a foreign currency, that is, each open account item in a foreign currency is valuated individually.

The accounts that are valuated are listed in the Customizing documentation.

Prerequisites

• The exchange rate table must be maintained (transaction OB08).

• Valuation method(s) must be defined (transaction OB59).

• Adjustment account* for each customer and vendor reconciliation account.

  • In a balance sheet item, adjustment accounts are displayed along with the relevant

reconciliation accounts.

• Account determination must be defined (transaction OBA1).

Balance Sheet accounts exist for unrealized exchange rate differences.

Expense and revenue accounts exist for realized exchange rate differences.

Process Flow

Before foreign currencies for open items can be valuated, the appropriate foreign currency postings must exist in the system. If none exist, post a vendor invoice in a foreign currency using the procedure described in Posting Invoices (Accounts Payable Accounting). Please note: Posting the document in CAD – specified exchange rate 1.496 – so that the subsequent transactions can be performed.

• The total difference of all the open account items is posted to a balance sheet adjustment account, thereby retaining the original account balance.

• The gains or losses from exchange rate fluctuations from the valuation are entered as offsetting entries in separate expense and revenue accounts for exchange rate differences.

• When the open items are cleared, the system cancels the valuation before creating and then posting the realized exchange rate difference.

Answers (0)