Foreign currency valuation – Realized Gain in SAP S4 HANA.
Understanding: It is part of foreign currency valuation. While clearing the customer/vendor open items, the exchange rate difference will be posted as a realized gain or loss. This occurs when the transaction is settled, and the exchange rate difference is actually realized.
End to End Scenario for Realized Gain: Rs. 1/-
- On 10-11-2024 the Currency Exchange Rate for 1 USD = 85 INR.
- On 10-11-2024 Posted a Vendor Invoice T code: FB60 (1 USD = 85 INR).
- On 05-12-2024 the Currency Exchange Rate for 1 USD = 84 INR.
- On 05-12-2024 Posting a Payment T code: F-53/F110.
| Description | Amount |
| Vendor Invoice | 85 INR * 20 USD = 1700 INR |
| Vendor Payment | 84 INR * 20 USD = 1680 INR |
| Exchange rate difference – Realized Gain | (+) 20 INR |
Step 1: On 10-11-2024 the Currency Exchange Rate for 1 USD = 85 INR
T code: OB08.
Step 2: On 10-11-2024 Posted a Vendor Invoice (Currency I USD = 85 INR).
T code: FB60.
Step 3: On 05-12-2024 the Currency Exchange Rate for 1 USD = 84 INR
T code: OB08.
Step 4: On 05-12-2024 Posting a Payment T code: F-53/F110
Go to T code: F-53.
Enter all the required info like – Document date, Company code, Currency – USD, House Bank, Account, Amount, Value date, Text, Vendor account.
Click on “Process open items” button.
Select the open item to clear.
Click on Document -> Simulate to check the accounting entry.
Accounting entry with document currency (USD).
Click on Display currency to see the document in local currency.
Accounting entry with company code/local currency (INR).
Click on post button.
Document posted.
Similar content related to foreign currency valuation:
- Configuration of Foreign currency valuation (T code: OBA1) in SAP S4 HANA: Click here
- Foreign currency valuation – Un realized Gain (FAGL_FCV) in SAP S4 HANA: Click here
- Foreign currency valuation – Un realized Loss (FAGL_FCV) in SAP S4 HANA: Click here
- Foreign currency valuation – Realized Gain in SAP S4 HANA: Click here
- Foreign currency valuation – Realized Loss in SAP S4 HANA: Click here
SAP FICO Configuration topics:
- SAP Finance Enterprise structure: Click here
- SAP Finance GL Accounting: Click here
- SAP Finance Accounts Payable: Click here
- SAP Finance Accounts Receivable: Click here
- SAP Finance Bank Accounting: Click here
- SAP Finance New Asset Accounting: Click here
- How to Create a Controlling area in SAP: Click here
- SAP Controlling – Cost Element Accounting: Click here
- SAP Controlling – Cost Center Accounting: Click here
Realized Gain in SAP S4 HANA.
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