Foreign Currency Valuation
Foreign Currency Valuation in SAP FI covers the periodic revaluation of open items and balances held in foreign currencies (vendor/customer open items, GL account balances, bank accounts) to reflect current exchange rates at period-end. This topic explains the accounting rationale, master data prerequisites, valuation methods, exchange rate types, configuration steps, posting logic, integration with the general ledger and subledgers, reconciliation controls, and the differences in behavior between ECC, S/4HANA on-premise, and S/4HANA Cloud including Universal Journal implications.
Overview
Foreign Currency Valuation in SAP FI covers the periodic revaluation of open items and balances held in foreign currencies (vendor/customer open items, GL account balances, bank accounts) to reflect current exchange rates at period-end. This topic explains the accounting rationale, master data prerequisites, valuation methods, exchange rate types, configuration steps, posting logic, integration with the general ledger and subledgers, reconciliation controls, and the differences in behavior between ECC, S/4HANA on-premise, and S/4HANA Cloud including Universal Journal implications.
Lessons in this topic
- Configuring Valuation Methods, Exchange Rate Types, and the Posting FlowLearn how valuation methods and exchange rate types are configured, how the valuation program calculates gains and losses, and how the resulting postings flow into the general ledger.
- Introduction to Foreign Currency Valuation: Purpose, Master Data, and When It RunsUnderstand why companies must revalue foreign currency balances at period-end, what master data and organizational settings enable it, and when the process fits into the financial close.
- Executing the Foreign Currency Valuation Run: Document Flow, Postings, and Reversal LogicExplains how the foreign currency valuation program executes at period-end, how it generates valuation documents, how postings hit exchange rate difference and balance sheet adjustment accounts, and how reversal on the following day works.