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.
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
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.
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