Foreign Currency Valuation Process
Basically, valuation process is necessary if vendor/customer accounts contain open items in a foreign currency. The amounts of these open items were translated into the local currency at the time they were entered using the current exchange rate.
The exchange rate is probably different at the time of closing, and open items need to be valuated again. A program valuates the open items using the new exchange rate and enters the valuation difference in the valuated line items.
A valuation cannot be made by posting to the payables account, since reconciliation accounts cannot be directly posted to. For this reason, the amount is posted to an adjustment account, which appears in the same line of the balance sheet as the reconciliation account.
Here is transaction of foreign currency valuation Process
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One Comment on Foreign Currency Valuation Process
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How to reset a FC valuation? | mySAP Experience Online on
Thu, 4th Jun 2009 7:50 pm
[...] if we execute a foreign currency valuation with a wrong date and the valuation posted some data which is junk then we need to reverse this [...]
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