3715580 - Foreign Currency Valuation: Year-End or Mid-Year Valuation Not Permitted for Vendor/Customer Open Items

When executing Foreign Currency Valuation in SAP S/4HANA Cloud Public Edition, the system does not allow Vendor or Customer valuation to be processed when the Year-End Valuation or Mid-Year Valuation indicator is selected.

The system raises an error stating that Year-End or Mid-Year Valuation is not permitted for the assigned valuation area. The error occurs only when Vendor or Customer open items are selected for valuation.

SAP S/4HANA Cloud Public Edition

Foreign Currency Valuation distinguishes between:

– Valuation of open items (Vendor/Customer and other open item managed accounts)
– Valuation of G/L balances (accounts not managed on an open item basis)

For open item managed accounts, valuation postings represent unrealized exchange rate differences. These postings are automatically reset by an inverse posting in the subsequent fiscal period. This behavior ensures that the full realized exchange rate difference is correctly determined at the time of clearing.

The Year-End/Mid-Year Valuation option requires delta logic to be active for the respective valuation area. In SAP S/4HANA Cloud Public Edition, delta logic is not generally available and is activated by SAP only for specific countries based on legal requirements. There is no self-service configuration (SSCUI) to activate delta logic.

If delta logic is not active for the valuation area, the system prevents Vendor/Customer valuation when the Year-End or Mid-Year Valuation option is selected. This is standard system behavior.

To perform year-end foreign currency valuation for Vendor or Customer open items:

Execute the standard Foreign Currency Valuation run as of the required key date without selecting the Year-End or Mid-Year Valuation indicator.

The valuation posting will impact the financial statements of the selected fiscal year. The automatic reversal posting in the subsequent fiscal period does not affect the closed fiscal year reporting.

If non-reversing postings are required for specific business reasons, this must be handled outside of standard Foreign Currency Valuation (for example, via manual journal entry), as permanent valuation postings for open item managed accounts are not supported in standard functionality.

Foreign Currency Valuation | FCV | Year-End Valuation | Mid-Year Valuation | Delta Logic | Open Item Valuation | Vendor Valuation | Customer Valuation | Automatic Reversal | Valuation Area | S/4HANA Cloud Public Edition | Unrealized Exchange Rate Difference , KBA , FI-GL-GL-G-2CL , Closing Operations / Period-End (Public Cloud) , Problem