Foreign currency valuation – Realized Loss in SAP S4 HANA.
Understanding: While clearing the customer/vendor open items, the entire exchange rate difference is 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 Loss: Rs. 3/-
- On 10-11-2024 the Currency Exchange Rate for 1 USD = 85 INR.
- On 10-11-2024 Posted a Vendor Invoice T code: FB60 (Currency I USD = 85 INR).
- On 05-12-2024 the Currency Exchange Rate for 1 USD = 88 INR.
- On 05-12-2024 Posting a Payment T code: F-53/F110.
| Description | Amount |
| Vendor Invoice | 85 INR * 10 USD = 850 INR |
| Vendor Payment | 88 INR * 10 USD = 880 INR |
| Exchange rate difference – Realized Loss | (-) 30 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 (1 USD = 85 INR).
T code: FB60.
Step 3: On 05-12-2024 the Currency Exchange Rate for 1 USD = 88 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 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
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- SAP Finance Accounts Receivable: Click here
- SAP Finance Bank Accounting: Click here
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- How to Create a Controlling area in SAP: Click here
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- SAP Controlling – Cost Center Accounting: Click here
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