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To read about the requirements for using multiple value flows in Financial Accounting (FI) and Asset Accounting (FI-AA), see Update of Multiple Values in Financial Accounting and Multiple Values in Asset Accounting.

The following scenarios make it possible for you to activate multiple valuations in FI:

Scenario 1: Multiple currencies not currently used in FI

Activating an additional valuation view (such as profit center valuation) in FI Customizing does not lead to any changes to data already posted. However, nonsense exchange rate differences arise in the additional valuation view when you clear open items. Moreover, all accounts have a balance of "0".

In this case, you have the following options:

Up to that point, your balance sheet data in the additional valuation view is worthless due to the exchange rate differences. Afterward, all you have to do is post your initial balance. Problems with exchange rate differences may arise with some business transactions (such as backdated tax calculation for cash discounts) or when you post the initial balance. The standard programs are not designed to cope with situations where data with and without additional valuations exists in the same posting. This procedure is not supported by SAP.

This option is useful if you activate multiple valuations somewhere in the middle of a fiscal year (year "X") but do not need to use the values in the additional valuation until fiscal year "X+1". Until then, almost all the open items created without the additional valuation will have been cleared. Any remaining open items need to be processed manually or using a program. During fiscal year "X", exchange rate difference postings are noticeable when you clear open items because additional postings lines with a value of "0" are created in the company code currency. This procedure is not supported by SAP.

This is only possible if need to analyze reports that contain exactly the same amounts in the additional valuation (for example, group currency) as in legal valuation. That is the case when the company code is the parent company and the group currency is active, so that you can report on all company codes in the group currency.

In this option, you need to assign the group currency to all open items. This makes all the values needed for future postings available in the group currency. Items that have already been posted and are no longer open are not converted to the group currency.

Amounts in the additional valuation approach (group currency) are added to the open items. Other document lines and documents without open items remain unchanged (with no amounts in the group currency). You should carry out this conversion at the end of your fiscal year, so that you have correct values in the group currency for the entire year. You can create initial balances in the group currency by translating the values in the legal valuation view.

Only document lines with open items and no group currency are converted. The system adds one line contain an amount (not "0") in the group currency to each document. this exchange rate difference is posted to a special profit and loss account ("Currency transfer") that you need to specify.

Example

Example with a hard currency (company code currency) of DEM and group valuation in the group currency USD:

 

Document before conversion:

Item

PK

Account no.

Name

DEM

USD

001

31

Vendor

Vendor

-1500.00

-0.00

002

40

400000

Material

1500.00

0.00

 

Document after conversion:

Item

PK

Account no.

Name

DEM

USD

001

31

Vendor

Vendor

-1500.00

-1000.00

002

40

400000

Material

1500.00

0.00

003

40

233233

Currency transfer

0.00

1000.00

 

The translation is carried out using the exchange rates for a specific date, which you specify, and using the settings made for multiple local currencies in Customizing. It is currently not possible to translate using past exchange rates.

You should introduce the group currency at the end of the fiscal year, before any postings are made in the new fiscal year. It is also possible to activate the group currency earlier (before the end of the year) to reduce the number of open items that need to be converted. One disadvantage of this is that users already see values in the group currency even though they do not need to work with them yet. the documents may often have extra lines in the group currency with exchange rate differences.

To obtain an opening balance sheet in the group currency, you can valuate the balances of accounts without open items in the group currency and post the results with "Currency transfer" as the offsetting account. The values are translated using the exchange rate for a specific date, which you specify. Balance sheet adjustment accounts for exchange rate differences from the open item valuation cannot be valuated. If desired, you can also valuate profit and loss accounts.

Reconciliation accounts in Asset Accounting (FI-AA) are not affected. Their balance in the group currency remains zero. You need to process these accounts separately.

Currently no other methods are supported for creating the opening balance sheet in the group currency.

Asset Accounting (FI-AA)

In FI-AA, you need to create an additional valuation area for each additional currency used in FI. Acquisition values and depreciation rules for these areas need to be copied with no possibility of alterations from the master area "01".

Scenario 2: Multiple currencies currently used in FI

You need to analyze whether currencies currently being used correspond to the currencies you need for your multiple valuations.

Example

You have the following settings in your system:

Financial Accounting

Company code currency

10

Local currency 1

30 = Group currency

Local currency 2

40 = Hard currency (<> Group currency)

 

You want to store the following valuation approaches in your system:

Currency and valuation profile

10 Legal valuation/company code currency

31 Group valuation/group currency

32 Profit center valuation/group currency

You want to replace the multiple currencies with multiple valuation approaches.

Since local currency 1 uses the same currency key as the currency you want to use for group valuation and profit center valuation, you can change the currency type and thus implement multiple valuation approaches. To do this, you need to run a conversion program that converts all the document headers in FI from the old currency type to the new currency type.

Local currency 2, however, cannot be changed over to a different valuation view, since the currency key of the local currency is not the same as that in the currency and valuation profile. In this case, an additional currency translation would need to be carried out on top of the currency type change. This is as complex a process as the euro conversion and is not supported in the standard R/3 System. However, it is possible to do this on a project basis in cooperation with SAP.

 

 

 

 

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