Incoming Invoice in Foreign Currency with Line Item Valuation
An invoice is entered for which the vendor is paid in a foreign currency.
When revaluating foreign currencies in company code 3000, two methods will be described. The first method allows you revalue at the end of a period with a realized exchange rate gain/loss. If the item is still open at the end of the next period the system only posts the delta between the exchange rate differences of the two periods as an additional realized gain/loss. The second method allows you to revalue at the end of the period with an unrealized exchange rate gain/loss. Then at the beginning of the following period that revaluation is reversed out (like an accrual). If the item is still open at the end of the next period, the full unrealized exchange rate gain or loss is recognized again.
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Process Chain
Select
, to see the data used during this demo. Then select the first process below:Setting exchange rates Entering a Vendor Invoice in a Foreign Currency Example 1: G/l Postings that Occur from an Invoice Posted in a Foreign Currency Display the foreign currency revaluation rules Foreign Currency Revaluation of Open Payables and Receivables Example 2: G/L Postings that Occur from Revaluation of an Open Payable Displaying the Revaluation Posting Displaying the Invoice After Valuation What will Happen, if the Document is Still Open in the Next Period? Example 3: G/L Postings that Occur when the Invoice is Revaluated Again in the Next Period What Happens when the Invoice is Paid? Example 4: G/L Postings that Occur from the Payment Display posted Items/ Accounts