Editing the Contract Currency Valuation 

Prerequisites

Before the contract currency changeover you need to carry out a foreign currency valuation for all loans where the contract currency (CC) differs from the local currency (LC), regardless of when the loan was created. You perform the foreign currency valuation as at the key date of the changeover.

LC = EUR ® CC: FRF, DEM

LC = DEM ® CC: FRF

Gains and losses must be realized, otherwise problems arise when you carry on processing the loan. In addition, you must perform a foreign currency valuation for all loans in currencies participating in EMU (that differ from the local currency).

 You have a loan in FRF in a DEM company code. Both currencies are participating in EMU. On the changeover date (01/01/1999), the rates of both currencies in relation to the euro are fixed. You need a carry out a valuation.

Procedure

Valuation

  1. You run the valuation in the Loans application. Choose Accounting ® Valuation ® Foreign currency. Run the valuation for all loans where the contract currency is a participating currency for European Monetary Union and differs from the local currency.

    2.  SAP recommends that you make the valuation postings for all the loans in participating currencies together. You should carry out the valuation after the fixed exchange rates are known and before the balance sheet date at which gains and losses must be disclosed.

  2. Maintain the flow types for write-ups and write-downs in R/3 Customizing. Assign the flows to the flow category XD and maintain the Customizing settings for accounting.

Special items for gains and losses resulting from fixed euro rates

The system posts gains and losses resulting from the changeover to the euro to the accounts for realized gains and losses.

If you opt to create special items for these gains and losses, you need to do this manually in FI.

You also need to write back the special items manually.