Exchange Rate Differences and Foreign Currency Valuation
Description
As of Release 2.2A, every company code can manage one or two further currencies, which are dealt with and updated to a large extent analogously to the local currency, parallel to the local currency.
This release note describes the changes that result for determining and posting exchange rate differences as well as for foreign currency valuation.
Change system parameters in customizing
Realized exchange rate differences and valuation differences do not only occur in the local currency of the company code but also in the currencies managed in parallel. The account determination in valuating the open items and in posting realized exchange rate differences can now be set depending on the currency type. You can thus, for example, post gains from exchange rate fluctuations in local currency and in group currency to separate accounts.
The account determination valid up to Release 2.1 is automatically changed when updating to Release 2.2. If you do not use any parallel currencies, no further actions are necessary in customizing.
If the system searches for the respective entry for a currency type and currency, this search can include up to four steps.
After upgrading to Release 2.2, the specification of a currency type is missing for all entries.
If you want to manage parallel currencies and at the same time vary the
account determination depending on the currency type (local currency, group
currency ... ), you must change the settings. You replace the entries for
which no currency type is specified by entries with a specification of the
currency type. To do this, choose the step 
"Prepare automatic postings for foreign currency valuation" under
"General Ledger Accounting" in the Financial Accounting Implementation Guide.
You then select Exchange rate differences for open items.
Changes in procedure
If you manage parallel currencies, generally all balance sheet accounts are to be valuated, not only accounts that are managed in foreign currency or that have open items in foreign currency. Variants for the valuation programs SAPF100 and RFSBEW00 are therefore to be adapted with regards to the selection criteria for the accounts to be processed.
In a valuation run, different currency types can be processed in parallel. Since the valuation methods for the currency types can be different, the parameters for the valuation programs have been extended. You can specify a valuation method for Local currency, group currency, hard currency, index-based currency and global company currency respectively. A valuation is carried out exactly for those currency types for which a valuation method is predefined.
If you want to post the valuation for certain balance sheet accounts manually because the valuation was determined outside of the SAP system (for example, for foreign securities), you can do that in the General Ledger menu via Document entry -> Valuate forgn curr.. You can enter the amounts in local currency or in the currencies managed in parallel on the entry screens for the document entry. All amount fields not entered receive a zero value. An automatic translation of amounts does not occur.
Further notes
This release note has already been delivered with Release 2.2. However, the functions described above are only officially released with Release 3.0.