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Configuration of Foreign Exchange

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Configuration of Foreign Exchange
Stechies

Foreign Currency Valuation Configuration 

Step-I: Define standard quotation for exchange rate

Path: General Setting> Currencies> Define Standard quotation for exchange rate

Click on New Entries

  

Step-II: Check exchange rate type

Path: General Setting> Currencies> Check exchange rate type

Always choose Exchange Rate Type- M- Standard translation rate at average rate

Step-III: Define translation ratios for currency translation

Path: General Setting> Currencies> Define translation ratio for currencies translation

Click on New Entries

And Save

Step-IV: Enter exchange rate

Path: General Setting> Currencies> Enter exchange rate

Click on New Entries

 

Step-V: Open 3(Three) Accounts for Foreign Exchange Transaction using FS00

1.)     Exchange gain A/c.

2.)     Exchange loss A/c.

3.)     Forex clearing A/c. or Balance Sheet Adjustment A/c.

Note: Instead of opening two accounts (Exchange gain and Exchange loss) we can open one account as

Exchange gain/loss Account
Step-VI: Parallel valuation method

Path: Financial Accounting > Financial Accounting global setting > Company Code > Parallel valuation method > Foreign currency valuation > Prepare automatic posting for foreign currency valuation

Click on KDF- Exchange rate difference: Open items/ GL accounts

Put Chart of Account and click on New Entries 


Comments

  • 01 Jan 2013 12:29 pm
    i have a company code TCS with USD. i have a printing and stationery account in EURO. i received invoice from malasian vendor for purchasing of stationery in MYR currency. now can i post invoice in MYR currency?




    SREEDEVI
  • 29 Dec 2017 12:07 am

    Thanks for the above information regarding Foreign  Exchage revaluation, but the  material has not  covered the full topic and not shown all the steps to sucessfully implement foreign exchange revaluation, will greatly appreciated if you would post the full steps and documents.

    Thanks

    Rafi

     

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