Description
The report carries out the valuation of foreign currency balance sheetaccounts at a given key date. The foreign currency valuation can becarried out in local currency and in parallel currencies (groupcurrency, hard currency...).
Foreign currency balance sheet accounts are G/L accounts which fulfillthe following conditions:

• There are balances in foreign currency on the account.


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


• The account is not a reconciliation account.


• A valuation takes place if the currency used for valuation and the
currency in which the account is managed are different.

• The account does NOT carry balances in local currency only.

If, due to the valuation, adjustment postings are necessary, then thisreport creates a batch input session with these postings, if requested.
The valuation difference is determined from the foreign currencybalance at the key date evaluated with the key date rate minus thelocal currency balance at the key date for every venture / equity groupcombination. The program will then allocate the valuation differencesto the corresponding cost objects (cost center, order, or WBS) from theJVA Database. If there is no cost object on the database record, thecost object from the venture master data will be substituted.
The valuation can result in a revaluation or devaluation of the accountbalance. In the case of a revaluation, the valuation differencedetermined is positive. The report then creates a debit posting for theevaluated account and a credit posting for the revenue account forvaluations or creates a credit posting for the account evaluated and adebit posting for the expense account for valuations depending on thepositive or negative amount of each cost object determined. In the caseof a devaluation, the valuation difference determined isnegative. The report then creates a credit posting for the accountevaluated and a debit posting for the expense account for valuations orcreates a debit posting for the account evaluated and a credit postingfor the revenue account for valuations depending on the negative orpositive amount of each cost object. This means that the fact, whetherthere are devaluation or revaluation postings generated depends on theaccount balance, while the balance per venture / equity group still cnvary.
If the offset account for the evaluation difference is a P&Laccount and the venture summary record (JVTO1) contains no cost object,the cost object from the venture master data will be substituted.
For every valuation run you must specify which valuation method is tobe used. The valuation method determines, among other things, thevaluation procedure (lowest value principle, strict lowest valueprinciple or post every difference).
In summary, the program will deliver the same results the corresponingFI program (RFSBEW00 or SAPF100) would deliver. It is a JVA replacementfor that program. So the decision, if an account will be revaluated ordevaluated is made on the same detail level as in the FI program (thisapplies especially to the 'low value' methods!).

Precondition
The required valuation method is defined. If necessary, check whetherthis requirement has been fulfilled.
IF &DEVICE& = 'SCREEN'
Proceed
ENDIF
The accounts for the posting of exchange rate differences from thevaluation are stored in the system. If necessary, check whether thisrequirement has been fulfilled.
IF &DEVICE& = 'SCREEN'
Proceed
ENDIFA foreign currency rate must exist at the key date.
IF &DEVICE& = 'SCREEN'
Proceed
ENDIF

Output
The report lists the result of the program run. Errors which occurduring the program run, are also shown in this list.

Example
During the course of the fiscal year, 1000 USD were transferred to a USDollar account at a rate of 1.6 DEM/USD. An invoice of 1000 USD waspaid at a rate of 1.5 DEM/USD.
The foreign currency balance at the end of the year is 0 USD. The localcurrency balance at the end of the year is 1000 USD * 1.6 DEM/USD -1000 USD * 1.5 DEM/USD = 100 DEM.
The valuation difference is 0 DEM - 100 DEM = -100 DEM.
If this difference is prorated over two cost objects as follows:
Cost Object Venture/Equity Grp Loc.Curr Amt(DEM)
----------- ------------------ -----------------
CC1 V1 /EG1 320
CC2 V2 /EG2 1280
After the system allocates the difference 100 DEM on the above...
Cost Object Venture/Equity Grp Loc.Curr Amt(DEM) diff. share
----------- ------------------ ----------------- -----------
CC1 V1 /EG1 320 20
CC2 V2 /EG2 1280 80
The following is posted at the key date:
Loss from valuation difference to foreign currency balance sheetaccount DEM for CC1 is 20 and CC2 is 80.
During the course of the fiscal year, 1000 USD were transferred to a USDollar account at a rate of 1.6 DEM/USD. An invoice of 400 USD was paidat a rate of 2.0 DEM/USD.
The foreign currency balance at the end of the year is 600 USD. Thelocal currency balance at the end of the year is 1000 USD * 1.6 DEM/USD- 400 USD * 2.0 DEM/USD = 800 DEM. The key date rate is 1.7 DEM/USD,so that the balance evaluated is 1020 DEM.
The valuation difference is 1020 DEM - 800 DEM = 220 DEM.
If this difference is prorated over two cost objects as follows:
Cost Object Venture/Equity Grp Loc.Curr Amt(DEM)
----------- ------------------ -----------------
CC1 V1 /EG1 400-
CC2 V2 /EG2 1200
After the system allocates the difference 220 DEM on the above...
Cost Object Venture/Equity Grp Loc.Curr Amt(DEM) diff. share
----------- ------------------ ----------------- -----------
CC1 V1 /EG1 400- 110-
CC2 V2 /EG2 1200 330
The following is posted at the key date:
Foreign currency balance sheet account to loss from valuationdifference for CC1 is 110 DEM and to gain from valuation difference forCC2 is 330 DEM.
Valuation in local currency amounts 2 and 3. A US dollar account has abalance of 1000 USD on the key date. The local currency amount1 is 1600DEM, the local currency amount2 is 500 GBP (index currency), the localcurrency amount3 (group currency) is 1000 USD. The index currencyrefers to local currency1 (that is, the DEM amount is to be evaluatedand not the USD amount), the group currency refers to the transactioncurrency (that is USD).
If a valuation method for the company code currency, index currency andgroup currency is specified, the balances are evaluated as follows:
local currency valuation 1000 USD at key date rate 1.7
index currency 1700 DEM at key date rate 0.45
group currency none since account managed in USD and thegroup currency is also USD.
The valuation within company code evaluation results in a newlyevaluated balance of 1700 DEM. This newly evaluated amount is theforeign currency balance for valuation in index currency. If no newevaluation in local currency had taken place, the original foreigncurrency balance of 1600 DEM would have been evaluated.
An evaluation in group currency is not necessary as the transaction oraccount currency and the group currency are identical.