Example: Document Splitting in Foreign Currency Valuation 

Use

During document splitting, specific account assignments are transferred from the original process to the subsequent process. Foreign currency valuation of balances is an example of a subsequent process. For this, the system takes the account assignments of the document splitting characteristics (such as Segment) from the current account balance of the account to be valuated and transfers them to the split posting items of the document, using the same proportions.

Prerequisites

You have specified the segment as a document splitting characteristic. You do this in the Implementation Guide under Financial Accounting (New) ® General Ledger Accounting (New) ® Document Splitting ® Define Document Splitting Characteristics for General Ledger Accounting.

For more information, see Making Settings for Document Splitting.

Process Flow

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       1.      Initial Situation:

You have posted two documents in foreign currency (USD):

Document 1: Posting Date 01/01/2003, Posting Exchange Rate: 0.8

Account	TC*: USD	LC**: EUR	Segment
Bank clearing	400-	320-	S1
Bank	400	320	S1

 

Document 2: Posting Date 02/01/03, Posting Exchange Rate: 1.1

Account	TC*: USD	LC**: EUR	Segment
Bank clearing	600-	660-	S2
Bank	600	660	S2

 

       2.      Account Status After Posting

 

       3.      Balance Valuation:

The system performs balance valuation as follows:

 

                            a.      Balance valuation for 03/01/2003, valuation exchange rate 0.9

Valuation by account:	TC 1000	LC 980
Valuation amount:		900
Valuation difference:		- 80

 

                            b.      Segment splitting using ratio 400:600 (as per document 1 and 2)

Valuation difference S1:	- 32
Valuation difference S2:	- 48

 

*     TC = transaction currency

**    LC = local currency