Realized vs Unrealized Foreign Currency Valuation with Demo – S4HANA and ECC
A very important step in financial period end closing is calculating “Unrealized Foreign Currency Differences” and posting an adjustment entry.
- What’s the difference between realized and unrealized foreign currency differences?
- What’s the related financial entry that must be posted at the end of every financial period?
- How does foreign currency valuation work in SAP?
Check the below video for:
- Full explanation of the business concept and financial entries
- Full demo of the process of SAP S4HANA which is also applicable to ECC
It’s very important to include the “Unrealized Foreign Currency Valuation” in the Finance Period End Closing process to comply with the financial standards!
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Hello Abdullah Galal,
Can you please explain the configuration part of Foreign Currency valuation.
2: FI and MM integration
3: FI and SD integration.
4; New asset closing process ( with basic error explanation ).
Thank for you sharing. I would like ask about some points too. How this unrealized loss will effect to financial statement. If somethings wrong, it can manually adjust? Please advise.
can you show us how to do the unrealized gain or loss in case of bank account