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

885 results

  1. Plan Your SAP S/4HANA Finance Implementation with an Understanding of Multicurrency Architecture

    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…...…
  2. How to Comply with IAS 21 When You Record Foreign Currency Transactions

    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…...…
  3. Foreign currency concept

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

    Reading time: 10 mins

    Global SAP customers often need operational currency that differs from the national currency their legal entity(s) resides in. To reconcile this discrepancy, SAP customers have, in the past, created mirror company codes, used special ledger, or performed currency conversion/translation in a data warehouse (i.e. SAP BW/BPC) to support their reporting needs. According to delaware Consulting,…
  4. Multi-Currency Accounting with SAP S/4HANA

    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…...…
  5. Demystifying the Ledger, Currency Setup, and Currency Conversion in SAP S/4HANA Finance 1610

    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…...…
  6. Currency Types: The Key to Reporting Parallel Valuations

    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…...…
  7. How to Use Transfer Prices for Intercompany Inventory Transfers with Standard Functionality

    Learn how to design a standard SAP solution to meet the business requirement to implement transfer prices or arm’s-length prices between intercompany, parent, or subsidiary inventory transfers. The main business reason for using transfer prices is to ensure that an organization having multiple affiliate companies is not manipulating income taxes by setting up prices over…...…
  8. Streamline Cross-Company Postings Using SAP Parallel Valuation and Transfer Pricing in an LIV Process

    Learn how to implement SAP transfer pricing and parallel valuation in goods receipt and an accounts payable Logistics Invoice Verification (LIV) process. Key Concept Parallel valuation in an SAP system helps an organization with multiple legal entities or company codes to prepare for consolidation. Multinational companies can use transfer prices in their cross-company transactions through…...…
  9. Demystify Parallel Valuation and Analyze Value Flow of Materials Across Plants or Legal Entities

    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…...…
  10. Navigate the Complexities of Currency Conversion for More Accurate Management Reporting

    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…...…