Description
The program carries out a rolling revaluation of the foreign currencybalances of those bank accounts not managed on an open item basis at agiven key date and then displays the gains and losses from exchangerate differences. Any adjustment postings that are necessary arecreated in a batch input session.
Note that you can also valuate these accounts via program RFSBEW00("Valuation of G/L accounts managed in foreign currency"); thisprogram, however, does not post any exchange rate gains or losses. Ifyou use both of these reports to valuate account balances, it isadvisable to distinguish the accounts to be valuated from one anotherby allocating each of them an exchange rate difference key.
The accounts must fulfil the following conditions:

• In the account master record, the currency key field must contain the
key for a foreign currency.

• The account is not managed on an open item basis.


• The account is not a reconciliation account.

Rolling revaluation can result in the upward revaluation or devaluationof an account balance. In the case of a revaluation, thedifference resulting from valuation is positive. The program carriesout a debit posting to the valuated account and a credit posting to theaccount for gains from exchange rate differences. In the case of adevaluation, the difference determined from the valuation isnegative. The program carries out a credit posting to the valuatedaccount and a debit posting to the account for losses from exchangerate differences.
The gains and losses incurred in the valuation period are displayed andposted to the period in which they occurred. Gains are offset on thedebit side of the balance sheet account against the account for gainsfrom exchange rate differences. Losses in an expense account are offsetagainst the balance sheet account.
For every valuation run you must enter which valuation method should beused. The valuation method determines, among other things, thevaluation procedure to be used (lowest value principle or the postingof every difference).
The program selects all the items from the account and sorts them byposting date and entry date.
The items are further broken down into:

• Foreign currency items (these are revaluated)


• Gain postings already made


• Loss postings already made


• Other valuation postings

Such a breakdown is necessary because if the balances are revaluatedfor the same period, the system must take into account the postingsalready made. The program indicates the postings it has carried out inthe reference document number and distinguishes them using thisfeature.
The rolling acquisition rate is calculated for every item with aforeign currency amount and the gain or loss resulting from this isdisplayed. The gain or loss for a month is reduced by the gain and lossof the month already posted and this difference is then posted.
The foreign currency balance is valuated on the key date and thedifference compared with the local currency balance calculated isdisplayed.

Precondition
The required valuation method is defined. Please check whether thisrequirement has been fulfilled.
IF &DEVICE& = 'SCREEN'
Proceed
ENDIF
The accounts for the posting of exchange rate differences from thevaluation are stored in the system. Please check whether thisrequirement has been fulfilled.
IF &DEVICE& = 'SCREEN'
Proceed
ENDIF

Output
If the line items are printed, the origin of the gain and loss as wellas the valuation difference can be traced.
The gain or loss posted is displayed per item and monthly totals areformed.
The gain and loss per month already posted is printed after thevaluated items.
Following this, the residual items of the month are listed. In this waythe monthly balance in local currency and in foreign currency isavailable at the end of the month.
The foreign currency balance, the exchange rate used, the localcurrency balance valuated and the valuation difference are displayed onthe key date.
The valuation takes place per G/L account although for reconciliationthe business area totals are displayed since the postings are carriedout at business area level.
The gain and loss and the valuation difference which have arisen aredisplayed at the end of the line item list per account, business areaand month. This result is used for creating the postings.
The postings carried out are put into a log.

Example
Action Floating Forgn curr. Local curr.Gain/
exch.rate balance balance Loss
Purchase 100 DEM for 70 USD 0.70 100 70
Sale of 50 DEM at rate 0.60 0.65 50 40 (loss)-5.00
valuated at key date 0.60 50 30
The expense resulting from the valuation (10 USD) is displayed but not
posted. (30 - 40 = -10)
The realized loss (-5) is posted to the valuated account and changesits
balance.
After you have run this program, program RFBBEW00 runs, which valuates
and posts the differences.
The valuations and postings are carried out by program RFBBEW00.