Why do we need to do Foreign Currency Evaluation

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Why do we need to do Foreign Currency Evaluation..

Answer / satish kulkarni

When we do balance sheet, open items in
vendors/customer/ledger line item which are in foreign
currency should be shown correctly.

As per account standard--11 of ICAI these should valuated
at balance sheet date & what ever gain/loss should be
accounted for.

This is reason we do foreign currency valueation.

In SAP customization done through OB59 & OBA1. We have
define method for valuation. In method along with other
parameter we define which rate should be taken to valuate
foreigh currency.

Actual valuation we do by T-code F.05

Regards

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Why do we need to do Foreign Currency Evaluation..

Answer / kiran kumar kakolu

In order to check the accounts both in local company and
parent company we need to do foriegn currency evaluation.

With this we can calculate the direct quote of local
currency to foreign currency

Is This Answer Correct ?

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