3578168 - G/L Accounts With a Balance of 0.00 in Foreign Currency Show Gain or Loss in Foreign Currency Remeasurement for G/L Accounts

You perform the Foreign Currency Remeasurement for eligible balance sheet g/l accounts (for example Account Type: Other Assets).
G/L Account 050001 shows a balance of 0.00 in foreign currency.
Nevertheless, when running the Foreign Currency Remeasurement Run a Gain or Loss is computed and posted for this g/l account. 
You wonder about applied calculation logic and means to exempt such accounts from being evaluated.

SAP Business ByDesign

1. Go to General Ledger work center.
2. Under Periodic Tasks go to Foreign Currency Remeasurement Runs view.
3. Open the relevant run.
4. Go to Remeasured Balances tab.
5. For relevant G/L Account 050001 there is either a Gain or Loss shown and posted.

The difference of Key Date Valuation Amount and Historic Valuation Amount determines the the gain or loss from Foreign Currency Remeasurement.
Key Date Valuation Amount is the cumulated balance in a foreign currency (transaction currency) multiplied by Key Date Exchange Rate between Company Currency and Foreign Currency.
If the cumulated balance of G/L Account 050001 at a Key Date is 0.00 the Key Date Valuation Amount will also be 0.00 (Company Currency) at any Key Date Exchange Rate. 
Calculated gain/loss hence will always be 0.00 minus Historic Valuation Amount resulting in a gain/loss. 

We illustrate applied logic with the following simplified example:

Transactions (here Supplier Invoices) are recorded in Transaction Currency USD at different Exchange Rates EUR/USD debiting g/l account 050001, resulting in a balance of 6,000.00 USD and 5,547.70 EUR (Company Currency).
On 01/08/2024 a Supplier Charge over -6,000.00 USD brings g/l account 12345 to a balance of 0.00 USD (Transaction Currency) and 6.10 EUR (Company Currency).

The Foreign Currency Remeasurement for General Ledger Accounts is conducted for g/l account 12345 for period 008.2024 resulting in a loss of 6.10 EUR,

• On 31/08/2024 Balance Amount 0.00 USD * Key Date Exchange Rate 0.8977 EUR/USD = Key Date Valuation Amount 0.00 EUR. 
• The Historic Valuation Amount = 6.10 EUR. 
• Gain/Loss = Key Date Valuation Amount (0.00 EUR) - Historic Valuation Amount (6.10 EUR) = - 6.10EUR; to be reversed on 01/09/2024.
• In other words: At any Key Date Exchange Rate previously realized Gain/Loss will effectively carry over into the next period.

If you want prevent a gain or loss to be recognized for G/L Account 050001 the balance in Company Currency (EUR) has to be brought to 0.00 as well for the end of a period - In other words: The Historic Valuation Amount has to be brought to 0.00 sustainably.

This can achieved by recognizing computed periodical gain/loss in a Journal Entry Voucher posting. 

For a suitable current open period the following entry could be entered.

Mare sure to blank the field Exchange Rate in order to allow for a zero value in Transaction Currency USD!

(In case g/l account Gain/Loss on Foreign Currency Remeasurement is not available for manual postings; the posting block would have to be removed under Chart of Accounts in the Business Configuration). 

As a result the balance remains 0.00 USD on G/L Account 050001 - reflected as 0.00 EUR in Company Currency. A subsequent Foreign Currency Remeasurement Run will not calculate gains or losses for zero balances in USD for this account. 

We would suggest to ideally test this approach in your test-system first.

KBA , SRD-FIN-GL , General Ledger , Problem