3794156 - No reversal created in FAGL_FCV (valuation area CZ) - SAP S/4HANA Cloud Public Edition

No reversal is created when running the foreign currency valuation in FAGL_FCV (Perform Foreign Currency Valuation App) with valuation area: "CZ" and using using Classic Foreign Currency Valuation.

SAP S/4HANA Cloud Public Edition

1. Run foreign currency valuation in FAGL_FCV.
2. Use classic valuation.
3. Select valuation area: "CZ".
4. Execute the update run and review the posting/log.
5. Observe that no reversal document is created.

Expected system behavior, not a defect.

The configuration delivered to SAP S/4HANA Public Cloud customers for the Czech Republic is aligned with SAP interpretation of the following legal framework:

- Act No. 563/1991 Coll. on Accounting, § 24(6) — requires revaluation of foreign currency monetary items at the balance sheet date using the CNB exchange rate
- Czech Accounting Standard No. 006 (Kurzové rozdíly) — governs recognition of FX differences in profit & loss

While monthly revaluation is not explicitly prohibited, the statutory obligation under Czech law is to revalue at the balance sheet date. For this reason, the delta logic is activated by default for the CZ valuation area, without monthly reversal. As a result, unrealized FX differences accumulate throughout the year and are not reversed between periods — which is consistent with standard Czech accounting practice.

The absence of a reversal document is therefore expected system behavior, not a defect.

Please note that this is a country-specific system configuration delivered as part of the SAP S/4HANA Public Cloud standard and cannot be changed by customers.

FAGL_FCV, classic valuation, no reversal, delta logic, valuation area CZ, Czech republic, Czech, perform foreign currency valuation , KBA , FI-LOC-FI-CZ , Czech Republic , Problem