The year-end closing operations can be implemented for different legislative accounting standards, such as US GAAP or the German Commercial Code, which are based on different valuation approaches.

The different valuation approach is calculated and posted in the following programs:

• Foreign currency valuation (SAPF100, RFSBEW00)
• Sorting payables and receivables (SAPF101)

The programs can be run using an alternative valuation area. When the valuation of open items is made which affects the balance sheet, the differences are stored in a table (BSBW). These differences are later used for the sorting of payables and receivables.

The additional valuation area must be created in Customizing for Financial Accounting. To do so, select the activity Define valuation areas in the Implementation Guide (IMG) for General Ledger Accounting.

You must then define the account determination for the alternative valuation areas in Customizing. To do so, define the account numbers for the expense or income from the valuation in the system. You do this under the activity Prepare automatic postings for foreign currency valuation in the IMG for General Ledger Accounting.