SAP Knowledge Base Article - Public

2265406 - Foreign Currency Remeasurement for Cash Run: Key Date Valuation Amount is Not Calculated as Expected. No Gain Amount Calculated.

Symptom

You have executed a Foreign Currency Remeasurement for Cash Run. When checking the Log Result for one or more set of books you realize that the Key Date Valuation Amount was not calculated as expected.

You were expecting a Gain Amount but the calculated Key Date Valuation Amount is the same as the Historic Valuation Amount, resulting in no gains.

Reproducing the Issue

  1. Go to Payment Management work center
  2. Go to Periodic Tasks > Foreign Currency Remeasurement Runs view
  3. Select the executed run and open the respective Log Result
  4. Move to the Remeasured Balances tab

Here notice that the Key Date Valuation Amount is not a product of Balance Amount * Key Date Exchange Rate but is the same amount of Historic Valuation Amount. You were expecting a Gain Amount but there's no gain calculated and displayed.

Example of expected calculation:

Balance Amount = 112,81 EUR

Historic Valuation Amount = 81,15 GBP

Key Date Exchange Rate = 0,737 

Key Date Valuation Amount = Balance Amount * Key Date Exchange Rate

Key Date Valuation Amount = 112,81 EUR * 0,737 = 83,14 GBP

Gain Amount = Key Date Valuation Amount - Historic Valuation Amount

Gain Amount = 83,14 GBP - 81,15 GBP = 1,99 GBP

Example of processed calculation:

Key Date Valuation Amount = Historic Valuation Amount

Key Date Valuation Amount = 81,15 GBP

Gain Amount = Key Date Valuation Amount - Historic Valuation Amount

Gain Amount = 81,15 GBP - 81,15 GBP = null (not displayed).

Cause

The reason for the processed calculation is the assignment of the Foreign Currency Remeasurement Method for the accounting principle tied to the respective set of books.

You are most likely using the foreign currency remeasurement method A002 Lowest value. The method A002 is usually assigned to the Foreign Currency Remeasurement Principle 002 - Lower Value, which works as follows:

The system only revaluates if the remeasurement results in an expected loss. That is, profits resulting from the valuation are only displayed if they are realized on the closing key date. Losses, however, are displayed if they are not realized on the closing key date.

Following the example given in the previous section, the expected gain of 1,99 GBP would only be displayed if it was realized on the closing key date.

Resolution

You should check the settings by accessing the Business Configuration activity Foreign Currency Remeasurement Methods for Cash and change them accordingly if they are not suitable to your needs.

For further information, please consult the help documents Foreign Currency Remeasurement for Cash Quick Guide and Configuration: Foreign Currency Remeasurement Methods for Payables and Receivables.

Keywords

KBA , SRD-FIN-GL , General Ledger , How To

Product

SAP Business ByDesign all versions