Interested to Buy Any Domain ? << Click Here >> for more details...
Answer Posted / raj
Foreign Currency valuation is used in reporting purpose.
As per accounting Concepts , We have to show expected Losses in report while dawing reports from system for free flow of funds.
FCV is used in all cases Like GL , VENDOR, CUSTOMER cases to calculate expected Loss or Profit...
EX: FCV result will come in 2 ways...
1. Unrealized Exchange gain/Loss
2. Realized Exchange Gain/Loss
Its applicable for Foreign Transactions.
EX : When we Purchased goods from vendor 10 Units @ 50$ * 60 Inr = 3000 Inr
When we run the FCV that time the Dollar value Increased ie; 62 Inr
Ie 100 Rs is the Exchange rate diff that 100 Rs will be UNREALIZED EXCHANGE LOSS....
Entry will be.
DR Unrealized Exchange Loss Acc
CR Balance Sheet adjustment Acc
After Drawing report Well reverse the entry.... Becaus the real transaction lot yet done...
Reversal entry
DR Balance Sheet adjustment Acc
CR Unrealized Exchange Loss Acc
Realized Exchange Gain/Loss:
ex: We Paid money to vendor against invoice...
Exchange rate is 58 rs
200 Rs is Profit for Company.
Entry will be.
DR Vendor
CR Bank Clearing Acc
CR Realized Exchange Gain
| Is This Answer Correct ? | 24 Yes | 0 No |
Post New Answer View All Answers
What is the difference between Held, Parked, Recurring and Sample Doc?
How do you calculate accrued costs? : co- cost center accounting
What does field status group assigned to a gl master record controls? : fi- general ledger
Explain reposting in cost center accounting? : co- cost center accounting
Hi Could you please share the process of migration of Classical GL Balances to New GL Balances. What are the actions / precautions we need to take at the time of New GL Migration time.
What is deffrent Between Company Act and Income Tax Act depriciayion
In a company there are 2 plants, Both Plants manufacturing the same product. In Plant 1 variance come. Now the client requirement is add that variance in the plant 2. How can we do that ?
What are the categories of update requests?
How to make control on vendor master data (bank account ) . We can validate the changes with transactions FK08 & FK09 in functional menu , but I need the path on Spro guide to customize the changes (bank accounts )
What is cost element? : cost center accounting
How does group chart of accounts differ from operating chart of accounts?
What is difference between investment order, internal order and accrual orders? : cost center accounting
How do you manage relationship between two currencies in sap fi?
Is it possible to default certain values for particular fields?
What is the dunning area? : fi- accounts receivable
