Description
This report carries out the foreigncurrency valuation for the contract account items.
Foreign currency valuation can be in local currency as well as in thecurrencies managed in parallel (such as group currency or hardcurrency).
Valuation is according to the single valuation principle. This meansthat only the individual items that are open at the balance sheet keydate are taken into account during valuation.
Flexible method assignment:
By specifying a valuation variant, you can use a method of your own foreach company code and currency type for the valuation. You can alsocarry out different valuations for different reporting views by defininga valuation area for each company code and currency type.
The valuation result is stored for each open item and you can process itfurther in the key date-related open item list (for example,reclassification of customers with credit balances).
Fixed method assignment:
The items are valuated with the method selected. The valuationdifferences are collected and posted per general ledger account.
Specify a valuation method for each local currency in which you want tocarry out the valuation. If you do not specify a method, there is novaluation. For example, you can valuate the open items with method M1 inthe company code currency, and method M2 in the hard currency.
Among other things, the valuation method defines the valuation procedure(lowest value principle or post each difference) and the exchange ratetype.
The exchange rate difference postings are created for each generalledger account and other criteria, such as currency and business area.However, the expense or revenue account is determined from the valuationdifference for each general ledger account. For the posting, the systemneeds to know the accounts to which the revenue or expense from thevaluation is to be posted. The balance of the receivables and payablesaccounts is corrected by postings to separate accounts. You display thereceivables and payables accounts with the corresponding correctionaccounts in the financial statements.
You can realize a further, customer-specific differentiation of exchangerate difference postings. To do this, you merely have to specify thecustomer include in structure FKK100.

Preconditions
You have made the following settings in the Implementation Guide forContract Accounts Receivable and Payable under Closing Operations ->Foreign Currency Valuation:

• The valuation method required is defined. Check whether this
prerequisite is fulfilled.
IF &DEVICE& = 'SCREEN'
Define Valuation Methods
ENDIF

• The required valuation areas for each reporting view (for example, HGB,
IAS, US GAAP) Check whether this prerequisite is fulfilled.
IF &DEVICE& = 'SCREEN'
Define Valuation Areas
ENDIF

• The valuation variant required is defined.

For each company code and for each local currency, you can configure thevaluation method to be used for a foreign currency valuation, and forwhich valuation area the valuation is to be carried out. Check whetherthis prerequisite is fulfilled.
IF &DEVICE& = 'SCREEN'
Define Valuation Variants
ENDIF

• You have defined the numbers of the accounts for the expense or revenue
from the valuation. For receivables and payables accounts, you also haveto define the numbers of the financial statement adjustment accounts pervaluation area. Check whether this prerequisite is fulfilled.
IF &DEVICE& = 'SCREEN'
Define Valuation Area-Specific Accounts for OpenItem Exchange Rate Differences
ENDIF

• You have defined the numbers of the accounts for the expense or revenue
from the valuation. For receivables and payables accounts, you also haveto define the numbers of the financial statement adjustment accounts.Check whether this prerequisite is fulfilled.
IF &DEVICE& = 'SCREEN'
Define Accounts for Open Item Exchange RateDifferences
ENDIF

• For each foreign currency, an exchange rate is
defined in the system. Check whether this prerequisite is fulfilled.
IF &DEVICE& = 'SCREEN'
Enter Exchange Rates
ENDIF

• The posting keys required have already been defined
in the standard system.

Output
The valuation results are output in a list sorted by company code,business partner, currency, and contract account.
You define the level of detail of the list in the valuation method. Youcan choose between the following types:


• Line item display, that is, totals per contract account, partner, and
reconciliation account

• Display per contract/partner, that is, totals per contract account,
partner, and reconciliation account

• Display per partner, that is, totals per partner and reconciliation
account
At item level the exchange rate used is printed. If the item is notvaluated (exchange rate has not change, or there is no valuation due tothe use of the lowest value principle), the exchange rate is set inparentheses.
The valuation differences are posted directly. The posting date is thekey date; the date of the reset (reversal) is one day later.
If you require a microfiche line, the following is printed in thevariable part:
Field Name,,,,Output Length
Company code,,,,4 characters
Business Partner,,,,10 characters
If postings were not executed because required information, such asaccount numbers or posting keys, is not defined in the system, theseerrors are output at the end of the list. Maintain the numbers for therevenue and expense accounts (see Prerequisites).

Example for Valuation Postings
An invoice for 100 USD is posted with local currency 85 EUR. On thefinancial statement key date, the item is valuated with an exchange rateof 0.75. A valuation expense of 10 EUR arises. This is posted asfollows:
Expense account to financial statement correction account onkey date
230010 ,,,, 140099 10 EUR
The valuation posting is automatically reset one day after the financialstatement key date.