Functionality and Performance Improvements for Currency Valuation in the SAP General Ledger

  • by Rohana Gunawardena, SAP Practice Director, Quality Systems & Software
  • March 5, 2014
Learn about FAGL_FCV, the new currency valuation transaction for SAP General Ledger in SAP ERP Central Component (SAP ECC) 6.0 enhancement package 5. Find out why SAP has provided a new option, when it is necessary to use this transaction, and the benefits of using it.
Learning Objectives

After reading this article, you will know how to:

  • Execute valuation of foreign currency transactions in SAP General Ledger
  • Understand the differences between new transaction FAGL_FCV and old transaction FAGL_FC_VAL
  • Decide if it will benefit your organization to switch from old FAGL_FC_VAL to new FAGL_FCV
Key Concept

Currency revaluation is the process of adjusting the income statement and balance sheet for fluctuations in exchange rates, which affect assets and liabilities recorded in foreign currencies. It is a key step in the month-end close for most enterprise organizations.

Transaction FAGL_FCV is a replacement for the previous SAP General Ledger valuation transaction, FAGL_FC_VAL. The old transaction, FAGL_FC_VAL, automatically takes the user to the new transaction, FAGL_FCV, if FAGL_FC_VAL has never been run or FAGL_FCV has been run at least once. This can cause confusion to users who are setting up a new SAP instance and are familiar with the older program and suddenly get a different selection screen.

I explain the differences between the old and new transactions, why SAP created a new transaction, what the benefits of the new transaction are, and why you should consider switching to the new transaction.

One of my clients was setting up a new system and was proceeding with testing month-end processes, one of which was valuation. The user ran transaction FAGL_FC_VAL and a new pop-up was displayed (Figure 1). This caused some confusion to the user as a familiar process had now been disrupted. This user wanted to know what the pop-up meant, what the SAP system had done, and if his process was broken. These are concerns that I answer in this article.

 

Rohana Gunawardena

Rohana Gunawardena is the SAP practice director at Quality Systems & Software, a specialist SAP consulting firm. Rohana has been working with SAP since 1992, focusing on the order-to-cash process with emphasis on global rollouts, business segment reporting, cross-module integration, and the financial impact of supply chain management transactions. He also has helped many clients on detailed system correction projects (e.g., correcting inventory balances, retrospectively activating group currency, and cleaning intercompany accounting transactions). Rohana has spoken at many SAP conferences and has published more than 20 magazine articles on various aspects of SAP. He is a fellow of the Institute of Chartered Accountants in England & Wales.

Rohana will be presenting at the upcoming SAPinsider Financials 2017 conference, June 14-16, 2017, in Amsterdam. For information on this event, click here.

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Comments

3/8/2017 3:58:22 PM
Sriram Rekapalli

This is very helpful...Thank you Rohana !
5/8/2014 12:44:34 AM
Michae Bashir

Very well written.

Thanks Rohana.
3/8/2014 6:19:05 AM
Vishwanath Krishnamurthy

Great article Rohana...kudoos

Thank you ..

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