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Function documentation Valuation of Open Items in Foreign Currencies.  Locate the document in its SAP Library structure


All open items in foreign currency are valuated as part of the foreign currency valuation:


You have posted a receivable in the amount of 1000 USD, at an exchange rate of 1.7000. The local currency is DEM. The system saves the receivable in local currency in the customer and receivables accounts (1700 DEM) (see following illustration, 1).

An exchange rate devaluation occurs at the time of the valuation and the exchange rate is now 1.6300. The receivable in the amount of 1700 DEM remains in the receivables account. The program posts the reduction to the receivable (70 DEM) to a financial statement adjustment account and the exchange rate difference to the account for exchange rate differences from the valuation as an offsetting posting (see following illustration, 2).

The receivables account and the relevant financial statement adjustment account are reported in one item in the financial statements. This means that the amount of the receivable in the financial statements is the valuated amount (1630 DEM).

This graphic is explained in the accompanying text


To valuate your foreign currency balance sheet accounts, you must define certain accounts. You define these accounts per reconciliation account:

You define the required amounts in Customizing under Financial Accounting General Ledger Accounting/Accounts Receivable and Accounts Payable ® Business Transactions ® Closing ® Valuating ® Foreign Currency Valuation ® Prepare Automatic Postings for Foreign Currency Valuation.


When carrying out a valuation of open items, you can configure account determination according to the currency type, so that, for example, currency gains in the local currency and in the group currency are posted to separate accounts.


You can also define expense and revenue accounts to display valuation differences separately (translation). For more information, see Displaying Valuation Differences


You have the following options for valuating open items in foreign currency:

You can define that in addition to being posted, the exchange rate differences are saved per document. This information is then available for subsequent evaluations, for example, Transferring and Sorting Receivables and Payables

To do this, select the indicator Valuation for FS preparations on the Postings tab.

The exchange rate differences saved in the document are taken into account for payment clearing:

When you valuate open items in foreign currency, the exchange rate difference determined is posted as an unrealized exchange rate difference.

For an incoming payment, that is, when you are clearing the open items, the current exchange rate is determined. The unrealized exchange rate difference determined from the line item is taken into account.


If the first valuation results in an exchange rate difference of 30 DEM, and the current valuation results in an exchange rate difference of 10 DEM, an exchange rate difference of 20 DEM is posted and 10 DEM is saved in the line item as the final valuation difference.

You can define that the exchange rate differences posted are automatically reversed one day after the valuation run by an inverse posting.

You therefore have the option of determining exchange rate differences at any point in time without this valuation being taken into account for the creation of financial statements or for payment clearing.

To do this, select the indicator Reverse postings on the Postings tab.