Foreign Currency Valuation.

1) Loans from foreign bank

2)If any receivables from the foreign customers

3)If any payables to the foreign vendors.

4) maintain currencies in OB08

6) assign G/L in OBA1 in KDF

5)Foreign Currency Valuation

 Realized
 Unrealized
 Unrealized and realized

USD INR DATE

1000 70000 01.09.2022
1000 73000 30.09.2022
1000 80000 15.10.2022

 If you valuate financial statement on month end on 30.09.2022 and you found that
there is difference in payable it's called as unrealized loss.
 If you pay the vendor on 15.10.202 and you found the difference as compared to
30.09.2022 its a realized loss.

Configuration.

A)Define valuation methods.

New entries .
B) Define valuation area.

C)Check assignment of accounting principle Ledger group.

D)assign valuation area and accounting principles

E) Prepare automatic postings for foreign currency valuation (OBA1).

for KDB.
for KDF.

display of G/L for assigment in OBA1.

4304 for realised loss

3102 for realised gain.
4305 for Unrealised loss/gain.
1510 for exc.rate BS adj a/c
E) Maintain currency exchange rate in OB08

Post a doc in FB60 in USD

Now go to FAGL_FC_VAL in ECC.

For S4 hana go to FAGL_FCV.

click on execute

You view the vendor open item valuation at the month end and reversal date of the document
and can paid on 15.10.2022 as per the payment terms agreed with the vendor.
Lets pay with F-53
Realized loss as per outing payment to vendor.