Friday, December 9, 2016

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. 







No comments:

Post a Comment