Foreign Currency Valuation – Unrealized Loss in SAP S4 HANA

Foreign Currency Valuation – Unrealized Loss in SAP S4 HANA.

Understanding: Foreign Currency Valuation is part of period end activity. Here business transactions may include foreign transactions, to ensure accurate financial reporting, we just need to valuate those and capture the Unrealized loss or gain.

We call it Unrealized Gain or Loss because the payment has not yet been made even though we performed foreign currency valuation.

End to End Scenario for Unrealized Loss: Rs. 2/-

1. On 10-11-2024 the Currency Exchange Rate for 1 USD = 85 INR.
2. On 10-11-2024 Posted a Vendor Invoice T code: FB60 (Currency I USD = 85 INR).
3. On 30-11-2024 the Currency Exchange Rate for 1 USD = 87 INR (Exchange rate increased, so loss by 2 INR).
4. Now period end activity, On 30-11-2024 Foreign Currency Valuation T code: FAGL_FCV.

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 30-11-2024 the Currency Exchange Rate for 1 USD = 87 INR.

T code: OB08.

Step 4: On 30-11-2024, Period end activity, Foreign Currency Valuation (1 USD = 85 INR).

Go to T code: FAGL_FCV.

Give Company code, Valuation Area, Date, Update Run (Give test run if you are just checking)

Now depends on your requirement select the Vendors/Customers/GL Accounts.

In this blog we are valuating the foreign currency transactions for vendor open items.

Click on Execute button.

Displayed the foreign currency valuation items.

Double click on the line item.

Here we can see 2 documents

• Doc no. 10029 – Foreign currency valuation .
• Doc no. 10030 – Reversal of Foreign currency valuation document on 01-12-2024.

Double click on the line item.

Click on overview icon.

This is the Accounting entry for foreign currency valuation – Unrealized Loss.

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