Essentially, you can revalue any account that is open item managed.
The process is to revalue an open item at month end as an accrual.
Then reverse it at the beginning of the next month.
If the open item clears, then the realized gain or loss is booked.
If it is still open, the unrealized gain or loss is accrued again using F.05.
There is a reversal button in the F.05 transaction but I would think it would be easier to always accrue then reverse and let the clearing book the actual realized gain or loss.
Question of many accounting people is where most companies book there revaluation gains or losses.
According to FAS 52 in the US,
we believe that all unrealized gains or losses should be booked to an
equity account and not the P&L.
Transaction OBA1 is where you enter this option.
Transaction OBA1 is the main configuration transaction for foreign exchange loss or gain at the time of open item clearing as well as at the time of valuation.
In the first two fields we give G/L accounts for realised gain or loss at the time of open item clearing.
In the next two fields we give G/l for gain or loss at the time of valuation.
The entry is :
Vendor A/C dr
To bank
To Bal Sheet Adj A/C
To Valuation Gain A/C
The Bal Sheet adjusment account is for posting the unrealised gains/losses at the B/S date.
When the final payment/clearing is then made, only the gain/loss for the current Year is posted to the P&L, the portion relating to the previous year is cleared against the adjustment account.
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