Description
This program is used for foreign currency valuation at creditinstitutions. The balances of the G/L accounts managed in a foreigncurrency and the foreign currency open items are valuated. They can bevaluated in local currency and in the parallel currencies (groupcurrency, hard currency etc.).
The valuation difference from the accounts managed with open items areposted to the adjustment account and an expense or revenue account. Thedifference resulting from valuation for accounts not managed with openitems is posted to those same accounts and to an expense or revenueaccount.
The "hedged items" are displayed. The proportional expense or revenueresulting from valuation of hedged items is transfer posted to specialaccount for this purpose. These accounts are entered as parameters forthat report run.
For each valuation run you must specify which valuation method will beused to valuate the accounts. A number of further report parameters aredependent on the valuation method, including the valuation procedure("lowest value principle" or "always valuate").

Precondition
Maintain the accounts for the adjustment postings from open itemaccounts. You need to make an entry for each special G/L account.
IF &DEVICE& = 'SCREEN'
Proceed
ENDIF
The revenue/expense accounts for the valuation postings from non openitem accounts must be entered.
The valuation method you have selected must be defined in the system.Check whether this prerequisite has been met.
IF &DEVICE& = 'SCREEN'
Proceed
ENDIF
The "hedged items" must be entered. Check whether all the entriesrequired have been fully made.
IF &DEVICE& = 'SCREEN'
Proceed
ENDIF

Output
The data output is sorted by company code, G/L account, account type,sub-ledger account, currency, business area, document number and lineitem.
For each document number the system issues the foreign currency amount,local currency amount, the valuated amount and the valuationdifference.If an account balance has been valuated, then neither thedocument number nor the line items are issued.
For hedged items, the system issues the hedging number, hedging amountand the proportion as a percentage. The expense or revenue that istransfer posted corresponds to this percentage.
Subtotals are printed per currency and G/L account.
At the end of the list the system issues an overview of the postingsmade. This overview is sorted by company code, cover number and G/Laccount. The main thing this overview shows is the accounts found forthe creation of the batch input session. Missing accounts are alsodisplayed.
The batch input session contains both the adjustment and the relatedreversal postings for each company code and G/L account.

Example
The USD balance sheet account has a balance of 1000 USD and a localcurrency amount of 1600 DEM. The mean spot rate on the key day is 1.70DEM. The account balance is covered to the amount of 400 USD as agreed.
Valuation at key date:
1000 USD rate 1.70 = 1700 DEM valuated amount.
Difference from valuation (1700 - 1600) DEM = 100 DEM.
This difference is posted to the balance sheet adjustment account and
the revenue account as follows:
Debit adjustment account, credit revenue account 100 DEM
The portion from hedged item (40%) is posted to a special revenueaccount.
Debit revenue account, credit revenue from hedged items 40 DEM.
The postings are reversed again.