What is foreign currency revaluation in SAP?

What is the purpose of foreign currency revaluation in SAP?

Foreign currency revaluation is done to revalue the AP/AR and other GL accounts (e.g. bank GL account) balances in foreign currency in order to bring them to the market value during the month end closing rate. The revaluation will be done for all open items and account balances in foreign currency.

Why do we do foreign currency revaluation?

The General ledger foreign currency revaluation can be used to revalue the balance sheet and profit and loss accounts. … When you run the revaluation process, the balance in each main account posted in a foreign currency will be revalued.

What is foreign currency valuation SAP?

Foreign currency valuation covers the following accounts and items: … The balances of the G/L accounts that are not managed on an open item basis are valuated in foreign currency. Open items that were posted in foreign currency. Open items that are open on the key date are valuated in foreign currency.

What is the use of F 05 in SAP?

The SAP TCode F-05 is used for the task : Post Foreign Currency Valuation. The TCode belongs to the FBAS package.

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What is SAP FB50?

Transaction FB50 allows for the creation of journal vouchers (an accounting document made up of only line items) within the G/L module.

What is revaluation SAP?

Two ways to calculate and post the revaluation in SAP includes transaction to local currency only or transaction to local currency with group currency translation. … The balances are revaluated based on the currency exchange rate on the evaluation key date.

How does foreign currency valuation work in SAP?

When a foreign currency valuation is done in SAP, all open items and balances in a foreign currency will be converted to local currency using the current exchange rate maintained in the system. After taking FCV run SAP creates two postings.

How do you post foreign currency valuation in SAP?

Foreign Currency Valuation in SAP

  1. Step 1: Maintain Exchange Rates. …
  2. Step 2: Post a Customer Invoice in a Foreign Currency. …
  3. Step 3: Update the exchange rates at the month-end. …
  4. Step 4: Run Foreign Currency Valuation in SAP. …
  5. Step 5: Display the Valuation Document. …
  6. Step 6: Foreign Currency Valuation Accounting Entry.