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Function documentation Valuating Foreign Currency Balance Sheet Accounts  Locate the document in its SAP Library structure

Use

Your foreign currency balance sheet accounts are valuated as part of the foreign currency valuation:

Example

The balance of your fixed term deposit account (foreign currency balance sheet account) has a balance of 1000 USD and 1700 DEM (see the following illustration, 1). An exchange rate devaluation occurs at the time of the valuation. The account balance is now valuated with an exchange rate of 1.6300. The valuation programs posts the exchange rate difference to the fixed term deposit account and to the account for exchange rate differences (see following illustration, 2).

This graphic is explained in the accompanying text

Note

As a result of the valuation, a difference arises in your local currency. However, only postings in the foreign currency specified in the master record (account currency) are permitted to foreign currency balance sheet accounts. The exchange rate difference is therefore posted with a foreign currency amount of zero, and a local currency amount equal to the exchange rate difference.

Prerequisites

To valuate your foreign currency balance sheet accounts, you must define expense and revenue accounts for exchange rate differences. You can make the setting in Customizing under Financial Accounting General Ledger Accounting ® Business Transactions ® Closing ® Valuating ® Foreign Currency Valuation ® Prepare Automatic Postings for Foreign Currency Valuation.

Features

You have the following options when defining the expense and revenue accounts for exchange rate differences:

You group the accounts using an exchange rate key in the master record of the foreign currency balance sheet accounts. In Customizing, assign the expense and revenue accounts for exchange rate differences to this exchange rate difference key.

Example

You want to analyze the exchange rate profits and losses arising on foreign currency balance sheet accounts and securities accounts in USD separately. To do this, create separate expense and revenue accounts for exchange rate differences for these USD accounts. Create a joint expense account and joint revenue account for exchange rate differences for all other currencies. You can include the currency and the type of asset (for example, foreign exchange or security) in the exchange rate difference key.

Exchange rate difference key

Name

1USD

Foreign exchanges in USD

1

Foreign exchanges in other currencies

2USD

Securities in USD

2

Securities in other currencies

The following entries would be required in the system for the example:

This graphic is explained in the accompanying text