3683004 - Classic Foreign Currency Valuation for Multiple Accounting Principles

Multiple accounting principles are being used (for example IFRS and a local accounting principle such as KRAP) with the corresponding valuation areas (e.g. IF for IFRS and KR for KRAP).
One or more of the following is observed:

• Foreign currency valuation using valuation area IF (IFRS) does not apply delta logic.

• It is desired that valuation area IF to apply delta logic similar to valuation area KR.

• It is desired that valuation area KR to post valuation results not only to the ledger assigned to KRAP (for example ledger 2L) but also to the IFRS ledger (for example ledger 0L).

• It is desired that valuation postings to update additional ledgers beyond those assigned to the valuation area’s accounting principle.

SAP S/4HANA Cloud Public Edition

In Classic Foreign Currency Valuation in SAP S/4HANA Cloud Public Edition:

1. Each valuation area is strictly assigned to one accounting principle.
   Valuation area IF is assigned to IFRS.
   Valuation area KR is assigned to the KRAP/local GAAP principle.

2. A valuation area posts only to the ledgers assigned to its accounting principle.
   It is not possible to extend or override this behaviour.

3. Delta logic availability is predefined per accounting principle.

   • Delta logic is delivered for KRAP (valuation area KR).

   • Delta logic is not delivered for IFRS (valuation area IF).
     The delta posting logic cannot be enabled or configured for IFRS valuation.

4. Cross-ledger posting is not supported.
   A valuation run cannot post to ledgers belonging to a different accounting principle.

This behaviour is by design and cannot be changed through configuration or extensibility.

The following behaviour is the only supported setup in SAP S/4HANA Cloud Public Edition:

• Run valuation area IF (IFRS) to post valuation results only to the IFRS ledger(s) (e.g. ledger 0L).
  Delta logic is not available for this valuation area.

• Run valuation area KR (KRAP) to post valuation results only to the KRAP ledger(s) (e.g. ledger 2L).
  Delta logic is available as delivered for KRAP.

• Posting IFRS valuation entries using KR or posting KRAP valuation entries using IF is not supported.

There is no option to activate delta logic for IFRS, and no option to direct KR valuation results to IFRS ledgers.

Customers using multiple accounting principles must execute foreign currency valuation separately for each valuation area, and each valuation area will post strictly to the ledgers assigned to its accounting principle.

Foreign currency valuation, Delta logic, Valuation area IF, Valuation area KR, IFRS, KRAP, Multiple accounting principles, Ledgers, 0L, 2L, S/4HANA Cloud, Posting logic, Cross-ledger posting, Valuation area assignment, FCV , KBA , FI-GL-GL-G-2CL , Closing Operations / Period-End (Public Cloud) , Problem