Freely-Definable Currency and Financial Statement Version (FSV) Setup

Learn about the multicurrency architecture in SAP S/4HANA Finance and discover how to set up the right solution design aligned to Generally Accepted Accounting Principles (GAAP), external reporting, and internal management reporting needs. Key Concept In both the classic General Ledger and the SAP General Ledger, you can define three parallel currencies in FI, two…...…

Do you know what the different currency types are, where they are configured, and when to use them? Confusion abounds in this area, especially when dealing with parallel valuation.Use this roadmap to gain control of all of your conversions and valuations. Key Concept You are probably familiar with the currency codes in SAP (e.g., United…...…

Learn how to set up foreign currency valuation and foreign currency translation in SAP ERP Central Component (SAP ECC) 6.0 following the rules prescribed in International Accounting Standard (IAS) 21. The rules apply to organizations following a dual reporting format (i.e., reporting as per International Financial Reporting Standards [IFRS] and local US Generally Accepted Accounting…...…

In a product cost controlling implementation, you may consider implementing the material ledger with parallel valuation — the recording of inventory values in a separate valuation view — whenever business requirements related to group and legal cost, transfer pricing, or group and legal valuation are planned. This approach demands a high degree of business process…...…

Since dealing with multiple currencies has become commonplace in a global economy, it’s no surprise that currency conversion is needed everywhere in global organizations that implement and run SAP software solutions. While currency conversion was mainly the purview of the ERP system in the past, ERP systems no longer carry that burden alone. Today’s managers…...…

See how the ledger setup, currency setup, and foreign currency valuation features have evolved with SAP S/4HANA Finance 1610. This will help you evaluate if the new features can be used by your company. Key Concept SAP S/4HANA Finance 1610 offers a new feature called a simulation extension ledger.  The simulation ledger is a category…...…

A good exchange rate design can handle requirements for foreign currency transactions considering local statutory requirements. Various design options are available to meet these exchange rate requirements. Key Concept There are a number of statutory requirements around foreign currency processing in a multi-country scenario related to exchange rate source, frequency of exchange rate update (daily…...…

Compare methods of configuring and executing foreign currency revaluation in your SAP system to determine which method best suits your needs while meeting US Financial Accounting Standards Board Statement No. 52 (FASB 52) requirements, which govern foreign currency revaluation. Key Concept Currency type 10 revaluation is the difference of the open payables/ receivables balance of…...…

Learn how to use the SAP multi-currency accounting (MCA) feature in SAP ERP Central Component (ECC) as a part of the normal Business Suite license. It is based on an internationally accepted accounting principle to record foreign currency items, primarily in the banking industry. Furthermore, banks should be able to report their currency exposure or…...…