Valuation Methods (SAP Library - FI Accounts Receivable and Accounts Payable)

Valuation Methods

Definition

Cross-chart of accounts specification that contains the valuation approach to be used for carrying out a foreign currency valuation as part of the closing operations, for example, according to the lowest value principle.

Use

When you carry out a foreign currency valuation, you must specify the valuation method to be used.

You define your valuation methods in Customizing under Financial Accounting → General Ledger Accounting/Accounts Receivable and Accounts Payable ® Business Transactions ® Closing ® Valuating ® Foreign Currency Valuation ® Define Valuation Methods

Structure

In a valuation method, you make the following specifications for the foreign currency valuation:

The valuation procedure to be used, for example, lowest value principle

How the exchange rate differences determined should be posted, for example, which document type should be used

The basis on which the exchange rate should be determined, for example, which exchange rate type should be used.