3462589 - Exchange Rate Loss not Realized for Bank G/L Account in Foreign Currency Remeasurement For Cash

Foreign Currency Remeasurement Method 'A002 - Lowest value' and Foreign Currency Remeasurement Principle '002 - Lower Value' are applied for a Company and related Set of Books (SoB).
For a particular bank g/l account XYZ the valuation at key-date would imply an Exchange Rate (EXR) Loss. 
You notice, however, that Key Date Valuation Amount equals Historic Valuation Amount.
Therefore no Loss will show for bank g/l account XYZ.

SAP Business ByDesign

1. Go to Payment Management work center.
2. Go to Foreign Currency Remeasurement Runs view.
3. Open the respective run.
4. Go to Remeasured Balances.

For G/L Account XYZ no Loss is shown and posted.

The FCR-Cash groups and aggregates g/l account balances according to House Banks.
Calculated balances in Company Currency according to Key Date Exchange Rate then will be compared to Historic Valuation Amounts.
Whether Gains and Losses will be shown will depend on applied FCR-methods and principles and whether an aggregated Gain or Loss is computed per House Bank. 

Depending on account balances and EXR-movements this can lead to a situation that the valuation of a single bank g/l account and bank account can differ from the grouped results for a particular House Bank. 

Business Configuration Settings: 

Activity: Foreign Currency Remeasurement Methods for Cash

Assign remeasurement method to accounting principle:
For applicable Accounting Principle Foreign Currency Remeasurement Method 'A002 - Lowest value' is assigned under tab 'Use for Cash'.

Edit foreign currency remeasurement methods:
Method:                                                              A002 - Lowest value
General Settings:
Foreign Currency Remeasurement Principle:           002 - Lower Value

Example: 

Company Currency is EUR. 

Bank G/L Account 121003 - Bank 3 is linked to a bank account in USD with a balance of 0.00 USD.

There are other Bank G/L Accounts linked to bank accounts for the same house bank Bank 1.

The Historic Valuation Amount in EUR is 14,556.04 EUR. The periodic EXR Gain/Loss hence would calculate as:

Key Date Valuation Amount  (0.00 EUR) ./. Historic Valuation Amount = -14,556.04 EUR

The Key Date Valuation Amount, however, shows as 14,556.04 EUR. Hence no Loss is realized for Bank G/L Account  121003 - Bank 3.

The calculation logic is illustrated in below table:

At a Key Date Exchange Rate of 1.2 EUR/USD house-bank Bank 1 has a calculatory EXR Gain of 284.70 EUR on aggregate.

According to Foreign Currency Remeasurement Method 'Lowest Value' there is no Gain posted for this bank and affected period.

No Gains or Losses will result from this FCR-Remeasurement Run for each bank g/l account including  121003 - Bank 3.

This scenario changes when applied Key Date Exchange Rate is sufficiently low so that an EXR Loss on aggregate per house-bank would show. We then would expect Losses as well as Gains for affected house-bank accounts to be shown and posted.

This is the intended system behaviour. 

The rationale of this definition is that, in this example - although an EXR Loss of -14,556.04 EUR for  121003 - Bank 3 is not posted - the even bigger EXR Gain of  14,840.74 EUR for the other bank g/l accounts belonging to Bank 1 is not acknowledged.
This conforms with Foreign Currency Method: A002 - Lowest value and Foreign Currency Remeasurement Principle: 002 - Lower Value.

We would expect deviating results  per bank g/l account only in rarer scenarios, since for bank accounts in foreign currency, movements usually would go in a similar direction. Especially when we have bank accounts with a FC-Balance of 0.00 - this effect may occur when values are aggregated for an entire bank. 

If a Loss per bank g/l account will be shown then depends on the Balance Amounts, Historic Valuation Amounts and applied Key Date Exchange Rate. If the Key Date Exchange Rate is sufficiently low so that an EXR Loss on aggregate and per house-bank would show - we would see Losses as well as Gains for affected house-bank accounts. 

KBA , SRD-FIN-CLM , Cash and Liquity Managment , Problem