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Example documentationExample: Document Splitting in Foreign Currency Valuation Locate this document in the navigation structure

 

With document splitting, subsequent processes transfer specific account assignments from the original 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 these account assignments to the split posting items of the document, using the same proportions.

Prerequisites

You have specified the segment as a document splitting characteristic. In Customizing for Financial Accounting (New), choose   General Ledger Accounting (New)   Business Transactions   Document Splitting   Define Document Splitting Characteristics for Controlling  .

For more information, see Making Settings for Document Splitting.

Process Flow
  1. Initial Situation

    You have posted the following 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

    (TW = transaction currency, LC = local currency)

    Document 2: Posting date 02/01/2003, 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

    This graphic is explained in the accompanying text.

    Account Status After Posting

  3. Balance Valuation:

    The system then performs the balance valuation as follows:

    Balance valuation per 03/01/2003, valuation exchange rate 0.9

    Valuation by account:

    TC 1000

    LC 980

    Valuation amount:

    900 

    Valuation difference:

     80-

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

    Valuation difference S1:

     32-

    Valuation difference S2:

     48-