FBB1 Realized foreign currency valuation process / Realized month end foreign currency valuation process / How to process for realized foreign currency valuation

Introduction:

Before creating Financial Statements, we have to perform Foreign Currency Valuation process. This document especially for foreign currency bank account valuation purpose which have to proceed in the month end and it is realized amount (No need to reverse to the next month). So at the month end, there could be some revenue or expense due to exchange rate fluctuations which would be reflected in the Financial Statements.

Scenario:

As an example (please see the below mentioned screenshot), for GL 40440070, devided with local currency amount and dollar amount, per dollar rate is showing BDT 131.08 BDT. Supporse current moth end dollar rate is BDT 78. So we need to get some adjustment entry. As per calculation we have to adjust BDT 1,226,145.51 to meet the dollar rate BDT 78.

Process:

Step -1

Go through T.Code FBB1

Value Field

Field Name	Description	Values
Doc. Date	Document Date	Example : 31.07.2016
Company Code	Company Code	Example : 1100
Posting Date	Posting Date	Example : 31.07.2016
Currency	Currency	Example : USD
Posting Key	Two-digit numeric key that determines the way line items are posted. This key determines several factors including the account type, type of posting (debit or credit) and layout of entry screens.	Example : 40
Account	GL account number	Example : 70030450

Step -2

For GL 70030450 – Realized Forex Loss

Value Field

Field Name	Description	Values
Amount in LC	Amount in local currency	Example : 1,226,145.51
Amount in DC	Amount in Document Currency	Example : 0
Cost Center	Cost Center Code	Example : 1101101000
Posting Key	Two-digit numeric key that determines the way line items are posted. This key determines several factors including the account type, type of posting (debit or credit) and layout of entry screens.	Example : 50
Account	GL account number	Example : 40440070

Step -3

For GL 40440070 – SIBL, Dhaka – FC a/c balance

Value Field

Field Name	Description	Values
Amount in LC	Amount in local currency	Example : 1,226,145.51
Amount in DC	Amount in Document Currency	Example : 0
Profit Center	Profit Center Code	Example : 110110

Step -4

Click “Display currency” button

Step -5

After click “Display currency” botthon then local currency will be appear.

Click the Save button to save this document.