SAP S4HANA Demo: Foreign Currency Valuation

[@typicaljonathan5909]

My goodness, you are a great teacher! The way this financial jargon messed my head up as a person from IT with zero accounting background...you made it soo easy. Thank you so much brother!

[@AbdullahGalal]

Thank you so much for your feedback, You are very welcome 🙏

[@diplodiplo8872]

I have been watching Hana tutorials for sometime. Never seen one with such good quality. Clear explanations, superb video and audio . It obvious that you have invested a lot of time on this. In short thanks and keep it coming.

[@AbdullahGalal]

Thank you so much! they do take a lot of effort and time, and i enjoy every second of it :)

[@Ahmed-fq6si]

I confirm 🙏

[@cringebee-vt1nk]

Thank you so much sir... I was struggling with the concept....but u made it easy.....God bless u

[@Ton-gm3lf]

You are an excellent teacher! Explaining the WHY before the HOW, and doing it very structured and understandable. So much better than all this indian pointandclick stupid not explaining anything crap. Thank you for your nice video!

[@AbdullahGalal]

You're welcome, I like simplifying topics. To be honest I watch a lot of great Indian SAP Consultants explaining complicated technical topics, they have very good knowledge of the subject that's very useful to experts

[@madandeshpande3961]

Ton...I respect your opinion....But do you know with limited resources Indian for the SAP world are making contributions.. Language or ascent can be a problem for you but not their dedication....On the top they don't charge...so will you please appreciate atleast their efforts...

[@mohammedasif415]

Wow that's great very clear cut explanation, Masha Allah.. Allah make you success in all your efforts.👍

[@AbdullahGalal]

Thanks a lot, Amin

[@NaveenCha]

Very clear and crisp explanation on realized and unrealized valuation. Thanks for sharing your knowledge Abdullah.

[@AbdullahGalal]

My pleasure!

[@maheshbabu3368]

@@AbdullahGalal 0000000009

[@KumR]

I work on Oracle but I still used this explanation. Great One.

[@AbdullahGalal]

Glad to know! thank you

[@madandeshpande3961]

Great Abdullah! Very simple approach and clear conceptual explanation.

[@AbdullahGalal]

Glad it was helpful!

[@sandeepdodda2890]

On the date of closing itself with update run is it reversal entry will also be passed or only unrealised/adj entry only be passed?

[@aliad.4848]

SUPER explained including AMAZING logic. Very helpful! Many thanks!

[@AbdullahGalal]

Very welcome

[@bharatpatidar3522]

Thank you so much for such a easy way to understand forex transaction. I'm learning a lot watching your videos about different GL postings. Thanks again and keep uploading such training videos for us.

[@AbdullahGalal]

My pleasure!

[@razamushahid]

Hi abdullah.i have never seen such a brilliant explanation in all of your videos and the best thing is giving all free.If someone like me interested in getting coaching on some topics in details like topics related to costing in S4HANA SPECIALLY

[@AbdullahGalal]

So nice of you, thank you

[@bentaamalia2267]

Perfect explanation! Thank you for sharing this with all of us!

[@AbdullahGalal]

My pleasure!

[@Ahmed-fq6si]

Amazing, whenever I go to SAP documentation I get lost. As if they do it on purpose. They make you think it's rocket science. Thank you Sir. God bless you, everything is crystal clear as usual.

[@AbdullahGalal]

Thank you Ahmed!

[@mohammadyousef1604]

Thanks Abdullah for taking the time and effort and sharing this quality content.

[@AbdullahGalal]

My pleasure!

[@mariaa8234]

Hi Abdullah, this is very helpful! Do you have a playlist to explain how to configure the acc postings to capture the exch gain/loss (min 7:36)? Thanks!

[@AbdullahGalal]

Here you go :) blogs.sap.com/2016/03/04/foreign-currency-valuation-simplified/

[@bullxcx6991]

Thank you so much for the spot on explanation! I could understand the relation now thanks!

[@monikasharma2200]

Dear Galal, the Realized gain or Loss is posted to which account balance sheet account or expense account? also the account which we post temporary are expense accounts ?

[@sylwiazimnicka6288]

I just need to say: Big thank you! Great teaching skills

[@AbdullahGalal]

You're very welcome! very appreciated

[@md.saifulislamsourav8062]

@Galal Academy We maintain exchange rate once in a year by a agreed open management. So far we run the valuation process once in a year. My question is the reversal posting required at the year end?

[@habtamujegnaw7676]

Thank you for the demo. If we don't pay the invoice in February, will the reversing journal entry for unrealized gains occur every month till we pay?

[@srikanthnc7804]

Thank you so much Abdullah for explaining very clearly with examples...

[@AbdullahGalal]

You're most welcome

[@kalyanhere070981]

Thank You for your great Effort Mr. Abdullah.

[@AbdullahGalal]

It's my pleasure

[@shadisayed9161]

Thank You for your great Effort Mr. Abdullah. I hope that you also completing the topics like that with Configurations part then it will be perfect.

[@AbdullahGalal]

Thanks a lot Shady, I just got to 5K subscribers and planning to do a config video as a celebration

[@ambasha17]

Easily understood about realized and un-realized. thanks.

[@AbdullahGalal]

You're welcome!

[@ldykbs2785]

Hi, currently my client wants to remove the GL Advance Payment from the open item config of Foreign Currency Revaluation. As they thought that GL Advance is not a monetary asset, so it should not be revaluated. What if I take out the down payment GL from revaluation config? any ideas what would be the impact?

[@DiwakarreddyPerugu]

Hi, Very detailed application. Thanks for it. Based on your video i tried to POC by creating Extension ledger with extension ledger type S(Simulation) and completed required FCV configuration. But when i try to exceute FAGL_FCV with simulation option and if i try to enter simulation ledger i got error Enter a valid simulation ledger (Message no. FAGL_CLOSING_ACT214). i have cross checked config and everything looks good. Any idea what could be the issue. Thanks

[@88pianissimo90]

Superb explanation... I think the difference amount is updated in BSBW table in ecc... Is this table same in S4 Hana?

[@celtonfurtado]

Very well explained! Clear and Concise!

[@AbdullahGalal]

Glad it was helpful!

[@ajinkyamohadkar9989]

Thank you Abdullah. It was really helpful to understand conceptually about Foreign Currency Valuation

[@AbdullahGalal]

You're welcome, thank you for your comment

[@rainarahmadani6364]

thank you so much Mr. Abdullah, your video really helpful to understand.

[@AbdullahGalal]

You are welcome Raina, thank you for letting me know, it makes me motivated to make more videos

[@sheenagupta6169]

I love the way you explained it. How can we check if FX currency posted ok? I would like to do a validation check. Like going in TB AND getting FX transations and simply check. Is it possible?

[@AbdullahGalal]

When you run the forex calculation program it shows a full report. You can compare the forex rates against the ones in transaction OB08

[@das52]

amazing i was able to solve an issue with this video... gave me better direction on where to look

[@AbdullahGalal]

Glad to hear that! thank you for the great feedback

[@kashjawed]

Great video. Is is "Paybls Domestic Adj" account a regular account or a reconciliation account?

[@AbdullahGalal]

Regular account

[@الازياءوالموضة-م3ه]

Great Explanation i understand so easy ...thank you

[@AbdullahGalal]

You're welcome, thank you for your comment

[@Naveen-s6c]

Thanks for the explanation its crystal clear

[@AbdullahGalal]

You are welcome!

[@danimba1000]

Another Excellent Video. you have used payable domestic adjustment account while posting the unrealized exchange rate differences. Is it open item managed account?

[@AbdullahGalal]

Haven't checked this one, it's the default setup in the S4HANA 1709 from SAP CAL

[@cristianvelicu8427]

Hello, Can you tell me same thing about the whey that SAP revert the unrealized differences posted and if from configuration we can control the logic of using loss or revenue accounts in the document generated for reverting it? Thanks

[@AbdullahGalal]

I showed the reversal entry in the video. The configuration for the loss or gain GL account is in transaction OBA1

[@redboy8821]

Thanks for sharing your knowledge

[@AbdullahGalal]

My pleasure

[@rajeshmandadi2172]

Excellent explanation... easy way of understand Realised & Unrealised Loss... what is the T-code in ECC, to Run in month end?

[@AbdullahGalal]

Check the video @9:26

[@faisalalkheraiji8264]

Thanks Abdullah. Clear Explanation !

[@AbdullahGalal]

Glad it helped

[@agnelsandeep7839]

What are the reports that end user can view in foreign currency valuation apart from the logs

[@energetic571]

Is it possible to get information about valuation by vendor and contract? Because we do information in our local currency to give report internal and external users. Thanks in advance.

[@mohammadarmanhossen2691]

Great Effort in FCV. Thanks for creating nice video

[@AbdullahGalal]

Glad you liked it

[@sarahamer7093]

Thank you sooooo much جزاك الله خيرا

[@quangtuan202]

As per IAS 21, foreign currency valuation difference is recognised in profit or loss. So in the next year, we have to reverse profit or loss we recognised this year because realized gain/loss in the nex year (when the payment is made) includes profit or loss recognised in this year?

[@AbdullahGalal]

Realized gain/loss happens only when the actual payment is done so it can't happen again next year for the same items so no need to reverse that Unrealized is reversed and recalculated every month

[@bolognesi4094]

Hi, thanks. Would like to see OBA1 - exchange rates differences configuration and how it is linked to the documents posted.

[@AbdullahGalal]

Check this amazing blog, there's no more I can say! blogs.sap.com/2019/05/06/s4-hana-finance-foreign-currency-valuation-transaction-fagl_fcv-simulation-ledger

[@amitshahu3661]

Very helpful video 👍👍,thanks

[@AbdullahGalal]

Welcome

[@shantanuarekar6617]

very good and precise explanation

[@AbdullahGalal]

Glad you liked it

[@Ton-gm3lf]

Good! Thank you HERO!

[@AbdullahGalal]

Did this help you at work?

[@mohamedramadan1361]

Very excellent video. Waiting more videos related to controlling and costing and other fi videos in Arabic and English. many thanks for you

[@AbdullahGalal]

You're welcome, will get to CO eventually :)

[@gyanendrapratap9835]

please share foreign currency valuation delta run concept where there is no need of reversals

[@ghostship14]

*Thank you so much Abdullah!*

[@evelintheodoridouu8939]

you could not explain it better! Well done :)

[@AbdullahGalal]

Thanks! 😃

[@bolognesi4094]

Excelent!

[@AbdullahGalal]

Thank you

[@sairamg8558]

Hi Abdullah, I have a doubt as when we do revaluation(fagl_fcv) in month end for unrealized loss/gain which balance sheet account gets effected for month end?. As you told unrealized loss/gain are not posted to original reconciliation account so payable domestic adjustment account is linked with which account? so where there is impact on balance sheet for reporting in month end. Can you please clarify

[@AbdullahGalal]

Hi Sairam, It's posted to a separte account, but when we configure the BS layout (Financial Statement Variant) we put this account just below the original reconciliation account

[@sairamg8558]

@@AbdullahGalal ohh i got it .Thank you so much abdullah .I have been watching your videos.I had cleared the interview rounds because of your videos its only because of you .I am from india thank you so much😊😃

[@satyas1914]

Excellent explanation!!

[@yandnir890]

Hi Friend, When do accounts from Translation in OBA1/KDF get triggered? Thank you

[@AbdullahGalal]

In OBA1 KDF we assign the FOREX gain / loss accounts for each open item GL account. These accounts are triggered either when we run the FOREX valuation (unrealized) or when we actually clear the document (realized). Watch the video for more details.

[@vamadeva8800]

Thank you so much for your explanation

[@AbdullahGalal]

Thank you Vama

[@husalazar]

Hi Abdullah, thanks for your video. Really helpful. I would like to know if you know about ECS - Error Correction and Suspense Accounting. This is bind to the FCV execution. Do you how it should be configured for S/4 Hana in order to catch errors when FCV is executed, and what are the different configurations points it has. Thanks for any help on this. Hugo S.

[@AbdullahGalal]

Thanks a lot for this comment! I never heard about ECS before and just read an SAP blog about it, sound very interesting. Please send me a message on LinkedIn and we can discuss more

[@AhmedNasser-it8pm]

what is the difference between t-code f.05 and FAGL-FCV

[@محمداحمد-ب1خ3ج]

اشكرك عالشرح الرائع والوافى .. وارجو الرد على سؤال محير بالنسبة لى .. ما هو الفرق بين KDB و KDF .. حضرتك هنا استخدمت الKDF .. فياريت لو توضح الفرق بخصوص امتى استخدم اى منهم .. ولك جزيل الشكر

[@AbdullahGalal]

سؤال عظيم، لم أجد شرح اوفى من هذا wiki.scn.sap.com/wiki/plugins/servlet/mobile?contentId=477826180#content/view/477826180 اقرأه و أخبرني إذا أجاب عن سؤالك

[@محمداحمد-ب1خ3ج]

اللى فهمته ان KDB بيستخدم لتقييم الارصدة الموجودة فى الميزانية (non-open items) زى ارصدة البنوك مثلا لانها بطبيعتها اى تغير فى سعر الصرف عليها بيكون realized gain/loss ، اما ال KDF بيستخدم لحسابات الopen items زى العملاء والموردين لانها بيبقى فيها احتمالين اما realized او unrealized .. اتمنى اكون فاهم صح على قد المرحلة اللى انا فيها دلوقتى لان فيه تفاصيل كتير لسه موصلتلهاش​

[@eddie62ma]

Thanks Abdullah! Very well explained How about going further with a new video explaining the usage of the simulation ledger? As it is new in s4hana? Thanks again

[@AbdullahGalal]

Haven't used it in any projects, will have to throughly study it first

[@amitkumarsingh2749]

Sir Thank You so much for the explanation.

[@AbdullahGalal]

Very welcome

[@praveenreddy3163]

Hi sir, Nice explanation,how realised amount difference is adjusted when we do payement

[@AbdullahGalal]

The amount in foreign currency is multiplied by the exchange rat at time of payment and any difference in local currency is posted as FOREX

[@zeyadsherif2111]

very good video Thank you a lot Abdallah barak allah feek

[@AbdullahGalal]

Wa Feed Zeyad, thank you

[@novnaveen]

Hi Abdullah, For FCV, other than Recon accounts, can we valuate the GLs maintained in Foreign currency only? or can we revaluate GLs maintained in local currency and transactions are in foreign currency. Thanks

[@AbdullahGalal]

Hi Naveen, - Revaluation can be done for all foreign currency accounts even if they are not recon accounts - When a transaction is posted to a local currency account, it's translated on the spot and posted in local currency, and it can't be revaluated.

[@novnaveen]

@@AbdullahGalal Thanks for the explanation Galal. But, regarding your second statement, does it holds valid for all GLs or GLs which are not 'Open item managed'.(GLs maintained in Local currency, and transaction in foreign currency).

[@mahfoozansari6928]

Thanks, u did not show where we should put the exchange rate for unrealized foreign currency valuation at month end.

[@AbdullahGalal]

Transaction code OB08

[@Psuresh-uc1le]

I am having issue with one of the GL account. This shows outstanding balance. How to sort this issue please let me know.

[@AbdullahGalal]

What's the issue?

[@suchitradas6246]

perfectly explained.. great job👍

[@AbdullahGalal]

Glad you liked it

[@SuperMegamalik]

Thanks Dear Abdullah, very nicely explained, after watching your video I subscribed your channel

[@AbdullahGalal]

My pleasure, thank you for the sub

[@shaimaaadel9577]

HI MR Abdullah, I have an issue after evaluation for AR posting that is no document for reversal happened and this from last fiscal year and the user didn't know but they want now to solve this issue at the document date. can you help me? Thank you

[@AbdullahGalal]

Hi, that requires analysis, I can't answer without havine all details

[@MAhmoudEl-Kelany]

Do you mean The general ledger didn't affected by transaction of revaluation at the end of reporting date So supplier balance in general ledger doesn't equal supplier balance in balance sheet As this transaction only for reporting ?

[@AbdullahGalal]

GL is impacted but in a different account than vendor reconciliation Vendor line items = vendor GL reconciliation account Vendor adjusted balance in BS = Vendor reconciliation GL + Vendor adjustment for FOREX GL

[@arakot265]

Per IFRS is valuation gain or loss termed as realised or unrealised ? Thank you

[@AbdullahGalal]

Both of them exist realized is when we actually do the payment or clearing and there's a FOREX différence unrealized is when we evaluate our open items at period end as explained in the video

[@rajug2316]

Thank you abdullah for clearly explaining the concept, can you please make a video on APP automatic payment program

[@AbdullahGalal]

Hi Raju, I already did! kzbin.info/www/bejne/hnuVlHSGd918iqs

[@laksht9503]

Excellent explanation

[@AbdullahGalal]

Glad it was helpful!

[@basureddy6418]

Good work Abdullah! Thanks for easy explanation......

[@AbdullahGalal]

You're welcome!

[@jogeswararao1953]

Nicely Explained, Appreciating your efforts. Thank You, Abdullah :)

[@AbdullahGalal]

My pleasure

[@sowjanyaprabha965]

Simply superb

[@AbdullahGalal]

Thanks a lot

[@shaikjunaid5118]

your explanation is very well, but we need back end configuration for better understanding.

[@AbdullahGalal]

Thanks! All the configuration steps are available in the documents library shared with the elite / platinum channel members www.youtube.com/@abdullahgalal/join

[@mahmoudgohar1013]

عظمة يا بودي

[@AbdullahGalal]

❤

[@damodargouda5274]

Very good video it's really valuable

[@AbdullahGalal]

Thank you damodar

[@AbdullahGalal]

Thank you damodar

[@VT-wk6qv]

Hi, am clear that from 15/1 and end of Jan the fx is unrealised of 2k. How about from ebd of Jan till payment date of 15/2? How much realised? Is the unrealised of 2k going to be reversed?

[@AbdullahGalal]

- The unrealised is reversed first day of next month (as you choose when running the FX program) - The realised will be posted during the clearing of the invoice in 15/2 depending on the FX rate then

[@nourbouabdallah2619]

hi sir thank you for your effort. i have a question when it comes to the foreign exchange difference amount. acctually it is posted as Thresh hold write off (due to tolerance regulations) yet i need it to be posted in forex gain/loss line in my document for the business specifications. Could you please give me a hint on how i can map the amount of differences in the required account :/

[@Aleee-ez6mu]

Its effect on other revenue and expense account in the name of loss or gain on foreign exchange rate by automatically posting of journal entry through account determination

[@jogdeepak]

Namaste !! Yella habibi very good explanation.

[@AbdullahGalal]

Thanks

[@tarkeshpatro2996]

Why did you reverse the entry at the last ?

[@ananya4826]

Because we have posted as an adjustment entry, it has to be reversed in next month.

[@sreenik3935]

But ,it would have great ,if you would have shown the Valuation are/Method and Un relized /relized configuration with screens. Thank you.

[@AbdullahGalal]

Keep watching, will get there eventually :)

[@MusicalTouchIRavi]

Sir you explained it very nicely. I understood the whole process but my question is that - I posted an invoice on 15th jan. Now on 31st jan my exchange rate is changed and I have not made the payment yet so will I get the unrealized gain loss entries before payment on 31st. Bcoz currently in my system I m getting some errors, so cant understand whether its config issue or its a standard process.

[@AbdullahGalal]

Yes, since you have open unpaid invoices, if you run the foreign currency valuation transaction correctly it should give you unrealized gain/loss

[@JJ-cx8mq]

Hi Abdullah, thanks for your video. May i ask you about foreign currency valuation ( tcode: fagl_fcv?). In dev System I ran fagl_fcv postng date 2019.11.30 . For Customer 'A' document '1111' foreign valuation document and reversal document is issued and it's amount is 5,000. When i ran fagl_fcv postng date 2019.11.30 again, I expected no foreign document is issued, but foreign valuation document and reversal document is issued and it's amount is 5,000 again. Why this situation is occured? Could you tell me? This is not happening in different customer's site. Thanks in advance!!!!

[@AbdullahGalal]

Are you sure the document was actually posted and this wasn't a test run?

[@shaily1589]

Hello Mr Abdullah, like all other videos, this too is very conceptually informative. However, I have a query with respect to the explanation you gave in the video. For the invoice that was posted, corresponding payment entry was also posted, which would have closed the invoice. then how come Invoice got valuated for unrealized loss?

[@AbdullahGalal]

Let's say we posted an invoice today in month "X" and this invoice was paid in the following month "X+1" @ end of month "X" when doing the closing, we have to run the FOREX program and post unreallized FOREX gain/loss, the program will also post a reversal entry in beginning of month "X+1" @ Payment in month "X+1" the system will automatically post the realized FOREX gain/loss This is what I explained in the video, try watching it again after this explanation and I hope it will be clear

[@sumitnair7523]

Thanks a lot . Your explanation is superb.

[@AbdullahGalal]

Thank you, glad I could help

[@prashant428]

could you please explain me what is valuation method in Foreign currency valuation

[@AbdullahGalal]

I always used the standard one, I suggest you check the SAP help for valuation method here help.sap.com/doc/3c51d7531a4d424de10000000a174cb4/2.6/en-US/f250d7531a4d424de10000000a174cb4.html

[@swatipurania8017]

Hello sir , really liked your video. here i understand if we deal with foreign vendors or customers. but i am little confused about normal GL transactions , suppose we take a bank loan from a foreign bank . how to see the realized and unrealized profit or loss. please help me out sir.

[@AbdullahGalal]

It's the same way, the same program can be used to valuare GL accounts, and when paying the loan you will get realized FX

[@saidbyr]

Thank you man, you have very clear explanation, Allah gives you more success in your both life :) And I have a question maybe you read the relevant doc; Can we realize the currency difference on control code currency; purchasing currency = EUR Controlling currency = USD Company code currency=EGP

[@Chillchasers007]

what is hedged exchange rate in valuation method. Pls suggest

[@AbdullahGalal]

I never used hedging in any project, you should look up the business concept first then check the system

[@Chillchasers007]

@@AbdullahGalal sure ty abdul

[@rakeshkottam5863]

Hi abdulla….the way of explanation very good.. can you please explain lockbox thank you 😊

[@AbdullahGalal]

Noted, thank you Rakesh

[@joylodh2709]

Good document with nice explanation..If possible can you please add the foreign currency customization/configuration video, Thanks

[@AbdullahGalal]

Welcome, I'm only explaining the business process and concepts for now, the configuration can be easily found online once you understand the concept

[@sahilmanhas8828]

Very good explanation. Please also make a video on difference between Revaluation and Translation Run

[@AbdullahGalal]

Will do my best! Thank you

[@AhmedHussein-eb5tl]

Dear Abdullah Is their any way to auto update exchange rates in SAP 9.3 and how

[@AbdullahGalal]

Hi, I don't have any information on SAP Business one

[@rahimanshaik5414]

hi, thanks for your video. as well as i need your advise to get the job on SAP consultants. currently i am working on end user and searching job on fico from last 2 years but no use. in interview they are asking lot of questions which i did not cover in class room training and online training. what is the best way to get the job to prove my self.

[@AbdullahGalal]

What are the questions you received in the interviews?

[@suneelkumar4384]

Thank you for video

[@AbdullahGalal]

You are welcome