Revaluation of balance positions - which accounts are valuated to realized , which to unrealized exchange rate difference in P&L

[ellenkerckaert]

Dear,

When doing a revaluation of all balance positions (open item managed and not open item managed), some accounts (e.g. banks) are booked towards realized exchange rates; other accounts are booked against unrealized exchange rate result. 

Can you tell me which accounts are steering towards realized and which ones are steered towards unrealized?

Thank you for your feedback.

Kind regards

Ellen Kerckaert

[MarNow · Accepted solution]

Hi Mathieu,

I would expect only accounts for 'unrealized exchange rates' to be used in this scenario. You described revaluation of balances and open items. Normally realized exchange rates are posted to when you clear open items.

Probably you may want to review automatic account assignments for your solution. You may want to review SSCUI: Automatic Account Determination ID100297. Area: Financial Accounting. GL Accounting. Process: Prepare Automatic Postings for Foreign Currency Valuation. Transaction key: KDB and KDF.

I hope it helps!

Regards,

Marcin

[MarNow · Accepted solution]

Here is also an example of automatic account assignment in Foreign Currency Valuation app.

[MarNow · Accepted solution]

Hi Robert, ‎@rbenedict

Foreign Currency Balance Sheet Accounts are accounts that you valuate with 'Foreign Currency Valuation' app. These are the accounts that carry open items or balances in foreign currency. Here is an example based on S4HC best practices CoA KDF configuration:

Foreign Currency Balance Sheet Account:

12120000 (Rcvbls Foreign)

Valuation:

Loss: 72040000

Gain: 72540000

B/S Adjmt: 12122000

I hope it helps.

[rb2020 · Accepted solution]

Actually, ‎@m.nowacki I understand now after additional reading that KDB is for revaluation of Non-Open-Item accounts that are Foreign Currency Balance Sheet Accounts. What I'm having trouble is determining the simpler question now of: What is a Foreign Currency Balance Sheet Account? How does a balance sheet account become a foreign currency balance sheet account? Thanks!

[rb2020 · Accepted solution]

Hi Marcin - Thanks for the help - upon going to those screens, I become a little unsure about what each field means, and what each process executes. So for example, KDB - Exchange rate differences using exchange rate key. How can I find out exactly what that means, and when that executes? Is there some sort of Guide or help for the SSCUI's?