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FX valuation posted to Non leading ledger with different document number

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Hi Team,

We have observed that in FX valuation, system has considered separate document number for 0L and 2L. We have assigned ledger group, say ZZ (0L+2L) to valuation area. However, when we post transaction in 0L, it is also posting to 2L with same document number. But, this is not happening in case of FX valuation. Example : 0L is having 11xxxxx and 2L is having 91xxxxx series assgined.

Client asking the reason for different document number assigned for 2L for FX postings.

Can any one give a clue for this different behavior.

Thanks,

Kishore P

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Hi,

We are using S4 HANA 1909 system with parallel ledger.

Accepted Solutions (1)

Accepted Solutions (1)

sanilbhandari
Product and Topic Expert
Product and Topic Expert
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Hi catchcakishore

I would think this is how it should post. Typically FX valuation postings are done to convert open FX Items and FX balances into local currency, so that financials can be prepared for the accounting principle. Now in your case, you have two ledgers and generally two ledgers are created to represent two accounting principles. If that is the case, the valuation area should ideally have been different since the accounting principle is different.

Now in your configuration, you have assigned the same ledger group (for what so ever reason) to the both the ledgers. However, the coding behind the set up still thinks of the logic which i explained you earlier and it still looks at ledger specific posting. This is what most of the customers would expect and hence there are two documents generated. You should understand the accounting rationale behind this and than explain the same to your business user.

Hope this helps

Thanks & Regards

Sanil Bhandari

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Hi Sanil,

Many thanks for response. Business Q is any posting to 0L (whether FX or not) should post to 2L with same document number as of 0L doc type and if any specific posting is made to 2L should be different document number. It will help auditor to identify specifically the documents posted in 2L.

We have created ZZ group (0L+2L), Created A/c Principle FX and assigned to ZZ group. When business tried to reverse FX posting in 0L via FB08, it has not considered 2L document. They had to reverse 0L and 2L document separately.

Please share your inputs to clarify business Q.

Thanks,

Kishore P

sanilbhandari
Product and Topic Expert
Product and Topic Expert
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Hi catchcakishore

That is not the expected process that needs to be done with FX Valuation. As I said earlier, the expectation with FX Valuation from accounting perspective is that conversion of FX posting into local currencies can happen at different rates depending on accounting principle behind and that is why the postings are always ledger specific. Even if the posting for a vendor invoice has happened to both the ledgers, how the balances should be treated in accounting principles can be different.

That is the precise reason why the design is such that you can create valuation areas as per the accounting principle, which in turns creates ledger specific posting.

In your case, you have assigned the same valuation area to both the ledgers, which in most of the customer implementations is not expected. The system design in this case is such that it expects to create ledger specific entries.

I am not sure, why your customer is using FB08 to reverse the entries since it is very much possible for system itself to create the reversal entries in next period as well. There is no need to do that manually. You should check the configuration of the FX Valuation and usage of FAGL_FCV based on the below blog, where the same is explained beautifully

https://blogs.sap.com/2019/05/06/s4-hana-finance-foreign-currency-valuation-transaction-fagl_fcv-sim...

The reversal can be used as shown in the below screen shot

Even if in your customer's case, the FX Adjustment is same for both ledgers, than it should not matter even if there are two documents which are ledger specific, since the balances at the end of day would be same. I see this more of a consulting issue to explain to the customer

Thanks & Regards

Sanil Bhandari

Answers (3)

Answers (3)

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Hi Expert,

Any solution on this issue.

Best regards

Partha

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Hi Sanil,

I am facing issue with FX revaluation for non leading ledger. T-code: FAGL_FCV.

Issue:

1. Different number taking for Non leading ledger postings (84XXXXXXXXX)..

2. Reversal document is not generating for Non leading ledger postings. .

Other information:

Both leading and leading ledgers are using same valuation method, where in maintained document type. In this case for both leading and non leading ledgers document type should be same (as usual accounting principles are different).

Leading ledger document numbers are coming correctly (43XXXXXXXXX), as per document type in valuation method and also generating reversal document.

Verified configuration, but I did not find any clue how 84XXXXX number range taking into picture. Actually 84XXXX number not assigned to any document type, as per my view.

Kindly advise how this problem resolved, at least solution for reversal document for Non leading ledger.

Best regards

Partha

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Thank you very much for detailed explanation. Will convey to customer. Thanks again !!!