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

  • by Rohana Gunawardena, SAP Practice Director, Exium Inc.
  • 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 heads the SAP practice division at Exium Inc. Exium is a leading business and technology consulting firm that enables companies to achieve their strategic business goals. Exium specializes in delivering superior IT solutions using ERP systems, with a special focus on SAP products. Rohana has been working with SAP since 1992. During his career he has assisted multiple clients on detailed system correction projects, such as correcting inventory balances, controlling area reorganizations, retrospectively activating group currency, and optimizing inter-company accounting transactions. He has spoken at many SAP conferences and has published more than 20 articles in Financials Expert, SCM Expert, and SAPtips on various aspects of SAP. His presentations have focused on Financials module selection, the order-to-cash process, global rollouts, business segment reporting, cross-module integration, and the financial impact of SCM transactions. Rohana is widely acknowledged as a leading SAP expert. Rohana is a Fellow of the Institute of Chartered Accountants in England & Wales. Previously Rohana has worked with the consulting practices of Accenture, Deloitte, and PwC.

Rohana will be presenting at the upcoming SAPinsider Financials 2018 conference October 16-18 in Prague. For information on the event, click here.

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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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