Step 1: Create three GL Masters (FS00)
SBI FC Term Loan (100502) – Liabilities
Exchange Gain (300100) – Revenues
Exchange Loss (400301) – Expenses
SBI FC Term Loan Account:
And save
Exchange Gain Account:.
And save
Exchange Loss Account:
And save
Step 2: Define Accounting Principles
Path: SPRO → Financial Accounting (New) → Financial Accounting Global Settings (New) →
Ledgers → Parallel Accounting → Define Accounting Principles
And save
Step 3: Assign Accounting Principle to Ledger Group
Path: SPRO → Financial Accounting (New) → Financial Accounting Global Settings (New) →
Ledgers → Parallel Accounting → Assign Accounting Principle to Ledger Group
And save
Step 4: Define Valuation Methods
Path: SPRO → Financial Accounting (New) → General Ledger Accounting (New) → Periodic
Processing → Valuate → Define Valuation Methods
Whatever the exchange rate type we selected (G, B, M) under exchange rate determination
tab, the same exchange rate will applicable at the time of revaluation
For instance, we entered exchange rates for the July month ended as below in OB08.
If we selected G under exchange rate determination tab it picks 48.00 for revaluation
If we selected B under exchange rate determination tab it picks 49.00 for revaluation
Select new entries
And save
Step 5: Define Valuation Areas
Path: SPRO → Financial Accounting (New) → General Ledger Accounting (New) → Periodic Processing → Valuate → Define Valuation Areas
And save
Step 6: Assign Valuation Area and Accounting Principle
Path: SPRO → Financial Accounting (New) → General Ledger Accounting (New) → Periodic
Processing → Valuate → Assign Valuation Area and Accounting Principle
And save
Step 7: Prepare Automatic Postings for Foreign Currency Valuation (OBA1)
Double click on Exchange Rate Difference (KDB)
Enter the chart of Accounts and click on multiple selection
Enter the valuation Area as “YA” and continue
Specify the Exchange Gain and Exchange Loss account
And save