FICO Foreign Currency Valuation Part 3: Running the Valuation and Understanding Postings
Run FAGL FCV at period-end: selection (company code, key date, valuation area), test run and log, postings for open items and GL balances, reversal vs delta logic, interaction with clearing, and troubleshooting wrong or missing valuation results.
Explanation
📌 KEY POINTS
✅ FAGL_FCV valuates open items (customers, suppliers, GL open items) and GL balances in foreign currency on a key date.
✅ Always run in test mode first and review the log for missing rates or accounts.
✅ Open item valuations are reversed on the next period's first day, or the delta logic posts only changes.
✅ When items are cleared, realized differences post; valuation history is considered with delta logic.
⚠️ Running valuation twice without reversal doubles the posting.
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▶ WHERE WE ARE
Part 2 configured valuation. Now execution.
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▶ 1. SELECTION
- Company code, key date, valuation area, accounts.
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▶ 2. TEST RUN
- Log: missing rates, missing accounts, items valuated.
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▶ 3. POSTINGS
- Unrealized gain/loss vs adjustment accounts.
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▶ 4. REVERSAL / DELTA
- Reversal next period, or delta postings.
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▶ 5. TROUBLESHOOTING
- Missing rates, wrong valuation area, excluded accounts.
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▶ STEP BY STEP
- Run FAGL_FCV in test mode.
- Review the log and correct issues.
- Run in update mode and check postings.
✅ CHECKPOINT: valuation postings match expected differences per account.
Code example
===== RUN =====FAGL_FCV: company code 1010, key date 30.09, valuation area IF, open items ✔ GL balances ✔, test run ✔Log → fix → update run → reversal date 01.10 (or delta logic) ===== POSTING (payable USD 1,000; rate moved 1.10 → 1.05) =====Dr FX loss (unrealized) 43.29 | Cr Payables adjustment account 43.29Real project scenario
Month-end valuation posted twice after a job was restarted without reversing the first run. Profit was understated until the controller spotted it. A rule to reverse before rerun and a job lock ended the issue.
Common mistakes
- No test run.
- Double runs.
- Manual adjustments after rate changes.
- Wrong valuation area.
- Ignoring logs.
Best practices
- Test first.
- Reverse before rerun.
- Fixed closing sequence.
- Correct valuation area.
- Review logs.
Interview angle
Questions: "How do you run FX valuation?", "What happens at reversal?", "Why use delta logic?"
Strong answer: selection, test/log, postings, reversal vs delta, troubleshooting.
Practice this lesson
Quick check
1. FX valuation was run twice after a job restart. What should have been done?
2. Why does the foreign currency valuation run typically post the valuation difference with an automatic reversal on the first day of the following period?
3. In a New General Ledger environment, what determines whether foreign currency valuation differences are posted only to a specific accounting principle's ledger rather than to all ledgers?
Interview questions
1. A production issue is reported in Foreign Currency Valuation. What would you check first, and how would you troubleshoot it systematically?
Answer it in your own words first, then compare.
2. Suppose you inherit an existing Foreign Currency Valuation solution. How would you review it before making a change?
Answer it in your own words first, then compare.
Reference-verified: the steps are checked against official SAP documentation and tutorials, and object and field names in the sample code are checked for consistency. The code has not been compiled or run on an SAP system by ERPClimb. Syntax marked release-dependent varies by SAP release, so check it in your own system.