SAP Foreign Currency Valuation Worksheet
At month end open foreign currency items are revalued at the closing rate and the difference is posted as an unrealized gain or loss. This worksheet recomputes that difference line by line, so you can check a valuation run or prepare a manual journal.
| Document number | Customer or vendor | Item type | Currency | Amount in foreign currency | Posting rate (to local) | Closing rate (to local) | Local value at posting | Local value at closing | Unrealized gain or loss | |
|---|---|---|---|---|---|---|---|---|---|---|
$130,200 | $128,640 | -$1,560 | ||||||||
$54,000 | $53,550 | -$450 | ||||||||
$81,280 | $82,880 | $1,600 | ||||||||
$121,880 | $120,736 | -$1,144 | ||||||||
$59,400 | $58,960 | -$440 |
The last column is the change in local value. For assets (receivables, bank) a positive number is a gain. For liabilities (payables, loans) a positive number is a loss, because the debt grew, so interpret the sign by item type. Enter rates as local currency per one unit of foreign currency. SAP valuation uses the rate type and date set in the valuation method, check these in FAGL_FCV.
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How to use the worksheet
Enter or paste your open items: the foreign amount, the rate at posting and the rate at the closing date, both quoted as local currency per unit of foreign currency. The sheet computes the local value then and now, and the difference. Export to Excel and compare it with the output of your valuation run by account. Differences point to a rate type mismatch, a missing rate, or items that were cleared after your extract date.
Sign conventions that confuse everyone
The arithmetic is the same for every item: closing local value less posting local value. The meaning differs. A receivable worth more in local currency is a gain. A payable worth more in local currency is a loss, since you owe more. Net the two sides to see exposure. A natural hedge, where a euro receivable offsets a euro payable, shows a small net result even when each side is large.
How SAP valuation works
The valuation run, FAGL_FCV in new general ledger and F.05 in the classic ledger, picks open items and balances, applies a valuation method with an exchange rate type and key date, and posts adjustment entries. These are normally reversed at the start of the next period, with the real exchange difference calculated when the item is cleared. Check that exchange rates for every currency exist for the key date, since a missing rate is the most common cause of an incomplete run.
Common mistakes
Common mistakes include entering rates inverted, using the average rather than the closing rate where policy says otherwise, revaluing balance sheet items in the wrong currency role, and forgetting bank accounts held in foreign currency. Another is running valuation before all postings are final, so late invoices are not revalued. Rerun, or post a supplementary valuation after late items arrive.
Frequently Asked Questions
Which SAP transaction runs foreign currency valuation?
FAGL_FCV is used with the new general ledger. The older F.05 handles classic valuation of open items and balances. Both use a valuation method set in configuration. Run it in test mode first and review the log.
What rate should I use for closing?
Use the rate type and date required by your accounting policy, often the month end spot rate from your treasury rate source. Whatever is chosen should match the exchange rate type set in the SAP valuation method.
Why is my result different from the SAP run?
Common reasons are different rate types, a missing rate for a date, items cleared after the extract, partial payments, and valuation areas with different rules. Compare totals by account, then drill into the largest differences.
Are these gains realized?
No. They are unrealized revaluation differences on open items. The realized difference is calculated and posted when the item is cleared by payment, at the then current rate.
If you want rate checks and valuation comparisons run automatically against your ERP, we can scope a read only validation with you.
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