Extension Ledger and Foreign Currency Valuation

This process describes a new functionality available in S/4HANA 1709. Presume this might be useful for those who are still exploring many of the features of S/4HANA like me.

In FINSC_LEDGER we now find some enhancements in the Extension Ledger. In the field “Extension Ledger Type”, we have three available drop-down values, out of which one is “Simulation”.

In this case, an Extension Ledger “RL” has been defined with type Simulation Ledger. We know all Extension Ledgers have an underlying base ledger and so only the “Extension Ledger” specific entries are stored in ACDOCA. However, for reporting purposes all the entries from the base ledger are added to the same, thus making it a composite Ledger. For now, let us assume the underlying Ledger in our case is “0L”.

One of the functionalities of this Simulation Ledger type is to help carry out “FC Valuation” exclusively in this ledger. So, the results are only posted in this Ledger and not in the underlying Ledger, say “0L”. So, we now branch off to the Transaction “FAGL_FCV”.

In the above screen, we see a Radio button “Simulation Run”.  The F1 Help for this field thus describes  “Simulation Run”.

“Quote” – In the simulation run, you perform the foreign currency valuation and associated postings; however, the postings are made to a separate simulation ledger. This means that you can delete the data of a simulation run (that is, the postings and history) easily without reversal postings. You can use the simulation run, for example, to analyze how postings for rates would look and as a tool for predictive analytics. “- Unquote”.

So, once the required settings are in place, we can do a simulation run and see the results. In this case , one posting document  ‘S000000009’ has been generated which is shown right below the display log.

You would notice the document number has a suffix “S”.

This FC valuation run  would be useful, as we could see all the posted results along with the values in the Leading Ledger  “ 0L”  before any period close or for any other predictive analysis . The posted values can be verified in table ACDOCA. Also this can be viewed in GL line item report “FAGLL03”.

When the check box “Delete Existing Sim. Data” is flagged the postings and the history from simulation runs are deleted. You would notice the ACDOCA table entries are no longer available.

Prerequisites:

All the required settings under “Financial Accounting > General Ledger Accounting > Valuate > Foreign Currency Valuation” are to be maintained first.

Apart from that, the minimum settings required for this are given below to generate the posting documents.

a)  Financial Accounting Global Settings > Document > Error Correction and Suspense Accounting > Define ECS Environments.

b) General Ledger Accounting > Periodic Processing > Valuate > Foreign Currency Valuation > Foreign Currency Valuation: Assignment of ECS Environment.

Number Range Object:

Number range object FAGL_FCV interval 01 must be maintained.

Define the following entries for number range interval 01 in transaction “FAGL_FCV_SNRO”:

No.       From number     To number

01         0000000001       9999999999

This is only a guide and members can read a lot of help materials available on the nodes themselves for more details. Hope this helps to understand the underlying functionality.

Your feedback would certainly help improve the quality of this document further.

Thanks,
J. Swaminathan