3789734 - Balance Sheet Adjustment Account Included in Subsequent Classic Foreign Currency Valuation Run

When Classic Foreign Currency Valuation (FAGL_FCV) is executed a second time for the same valuation area and key date, the G/L account configured as the Balance Sheet Adjustment account is unexpectedly included in the valuation proposal.

The subsequent valuation generates additional valuation and reversal postings, giving the impression that the initial foreign currency valuation has been reversed.

SAP S/4HANA Public Cloud.

1. Configure a Balance Sheet Adjustment account for open item valuation using SSCUI 100297 Automatic Account Determination (Transaction Key KDF).
2. Execute Classic Foreign Currency Valuation with:
   • Open Item Valuation enabled.
   • G/L Balance Valuation enabled.
3. The first valuation posts successfully. The configured Balance Sheet Adjustment account receives the valuation posting.
4. Execute Classic Foreign Currency Valuation again for the same valuation area and key date.
5. The Balance Sheet Adjustment account is now included in the G/L Balance Valuation and additional valuation documents are proposed.

The system is behaving as designed.

During the first valuation run, the configured Balance Sheet Adjustment account correctly receives the foreign currency adjustment posting for the open item valuation.

When Foreign Currency Valuation is executed again for the same key date, the Balance Sheet Adjustment account now contains a balance created by the previous valuation posting. If Valuate G/L Account Balances is active and the Balance Sheet Adjustment account falls within the selected G/L account range, the program treats this account as a foreign currency balance account that also requires valuation.

As a result, the same account performs two different roles during the valuation process:

• It acts as the Balance Sheet Adjustment account for the open item valuation.
• It is also selected as a G/L balance account for balance valuation.

This results in an additional valuation posting and corresponding reversal being generated for the Balance Sheet Adjustment account.

This is the expected behaviour of Classic Foreign Currency Valuation.

To avoid the Balance Sheet Adjustment account being valuated as a G/L balance account on subsequent valuation runs, use one of the following approaches:

1. Exclude the Balance Sheet Adjustment account from the Valuate G/L Account Balances account selection in the Foreign Currency Valuation run.
2. Configure a dedicated Balance Sheet Adjustment account that is separate from the reconciliation or valuation source accounts and is outside the scope of G/L Balance Valuation.