Normally you valuate the foreign currency balance sheet accounts and open items using the standard programs for this that are delivered with the system. These programs also post the exchange rate differences. Fore more information on this, see FI Closing and Reportin g .

However, you can also manually revaluate an account balance from foreign currency to local currency. This only applies to accounts that are not managed on an open item basis. For example, if you have securities or loans in a foreign currency and the exchange rate changes, you can manually revaluate the account balances. If you do so, post the valuation difference only in local currency. To do this, proceed as follows:

1. Choose Document entry ® Valuate foreign currency from the General Ledger menu.
2. Enter the currency key that is specified in the account master record in the document header.
3. Enter a posting key (40 for debit postings or 50 for credit postings) and the G/L account number. This must not be an account that is managed on an open item basis. Choose Continue.
4. Enter the revaluated amount in local currency, a posting key, and the number of a G/L account for gains or losses from exchange rate differences. The system automatically enters the local currency key in the items.
5. Enter the second line item; debit postings should be made to the losses account and credit postings to the gains account.