--- description: Before creating Financial Statements , we have to perform Foreign Currency Valuation for the Transaction done in Foreign Currency . title: Foreign Currency Revaluation in SAP: Month End Closing image: https://www.guru99.com/images/foreign-currency-revaluation-in-sap.png --- [Skip to content](#main) **โšก Smart Summary** Foreign currency revaluation in SAP restates open items and foreign-currency balance sheet accounts at the month-end or year-end exchange rate, posting the resulting unrealized gains and losses so financial statements reflect current currency values. * ๐Ÿ”˜ **Purpose:** Revaluation adjusts foreign-currency items to the closing exchange rate before financial statements are prepared. * ๐Ÿ’ฑ **Transaction:** Classic general ledger uses F.05 and report SAPF100; new general ledger and S/4HANA use FAGL\_FCV. * โš™๏ธ **Configuration:** Valuation methods sit in OB59 and the gain and loss accounts in OBA1, using keys KDB and KDF. * ๐Ÿ“… **Key date:** A valuation key date and company code drive the run, usually the last day of the period. * ๐Ÿ” **Reversal:** Unrealized differences post at period end and reverse automatically in the next period. * ๐Ÿค– **Automation:** SAP S/4HANA and AI-assisted close tools schedule and monitor the valuation as a repeatable closing step. [ Read More ](javascript:void%280%29;) ![Foreign currency revaluation month-end closing flow in SAP](https://www.guru99.com/images/foreign-currency-revaluation-in-sap.png) Foreign currency revaluation is a month-end and year-end closing step in [SAP](https://www.guru99.com/what-is-sap-definition-of-sap-erp-software.html) that restates open items and foreign-currency balance sheet accounts at the current exchange rate, so the [financial statements](https://www.guru99.com/the-balance-sheet.html) show realistic values before they are published. ## What Is Foreign Currency Revaluation in SAP? Before financial statements are prepared, every transaction posted in a foreign currency has to be valued at the exchange rate ruling on the closing date. These transactions can be bills receivable, bills payable, or inter-company transfers, and they involve general ledger accounts, [customers](https://www.guru99.com/accounts-receivable-in-sap-fi.html), or [vendors](https://www.guru99.com/accounts-payable-in-sap-fi.html). Line items can be open or cleared. For items that are already cleared, SAP uses the exchange rate of the date on which they were cleared, so the difference is already realized. For open items that are not yet cleared, the current or month-end rate is applied, and the valuation is run as a periodic closing activity. Because exchange rates move, the revaluation produces a gain (revenue) or a loss (expense) that is reflected in the financial statements. The expense and revenue accounts for these differences are defined in Customizing (transaction SPRO), and the run posts the adjustment automatically. * Applies to general ledger, customer, and vendor items posted in foreign currency * Cleared items are already realized; open items are revalued at the closing rate * Runs as a monthly and year-end closing activity feeding the balance sheet ## How to Run Foreign Currency Revaluation in SAP (F.05) With the configuration in place, the valuation is executed with transaction F.05\. The steps below run it for a single company code and key date. Step 1) Enter transaction code F.05 in the SAP command field, as shown below. [](https://www.guru99.com/images/sap/2012/06/FCurrVal01.png) Step 2) On the next screen, enter the valuation parameters and press Execute. * Company Code for which the foreign currency valuation is carried out * Valuation (evaluation) Key Date, normally the last day of the period * Valuation Method that sets how the exchange rate is considered * Valuation in Currency Type (default 10, the company code currency) * Optional filters on the G/L, customer, and vendor tab screens to narrow the run [](https://www.guru99.com/images/sap/2012/06/FCurrVal02.png) Step 3) SAP lists the G/L accounts selected for valuation and runs report SAPF100, which values the open items in foreign currency together with the foreign-currency balance sheet accounts. [](https://www.guru99.com/images/sap/2012/06/FCurrVal03.png) ## Configuration for Foreign Currency Valuation (OB59, OBA1, OB08) Foreign currency valuation depends on three pieces of Customizing, all reached from SPRO. Setting them once lets F.05 or FAGL\_FCV run cleanly every period. | T-code | Customizing step | Purpose | | ------ | ---------------------------------------- | --------------------------------------------------------------------------------------- | | OB59 | Valuation method | Defines the exchange rate type, the valuation procedure, and how differences are posted | | OBA1 | Account determination (keys KDB and KDF) | Assigns the gain, loss, and balance sheet adjustment accounts | | OB08 | Exchange rates | The rates the valuation reads for the key date | In OBA1, transaction key **KDB** covers exchange rate differences on foreign-currency balance sheet accounts that are not managed on an open item basis, while **KDF** covers open-item-managed accounts such as customer and vendor reconciliation accounts and bank sub-accounts. The exchange rates themselves are kept up to date in [transaction OB08](https://www.guru99.com/how-to-maintain-exchange-rates.html). ### RELATED ARTICLES * [Create Fiscal Year Variant & Assign to Company Code in SAP ](https://www.guru99.com/how-to-create-a-fiscal-year-variant.html "Create Fiscal Year Variant & Assign to Company Code in SAP") * [How to Post Foreign Currency Invoice in SAP FB70 ](https://www.guru99.com/how-to-post-a-foreign-currency-invoice.html "How to Post Foreign Currency Invoice in SAP FB70") * [How to Create a Vendor Master Data in SAP ](https://www.guru99.com/how-to-create-vendor-master-data.html "How to Create a Vendor Master Data in SAP") * [Accounts Receivable in SAP FI ](https://www.guru99.com/accounts-receivable-in-sap-fi.html "Accounts Receivable in SAP FI") ## Realized vs Unrealized Exchange Rate Differences A central idea in revaluation is the split between unrealized and realized results, because SAP treats them very differently. An **unrealized** difference comes from the period-end valuation of an item that is still open. The gain or loss exists only on paper, so SAP posts it to an unrealized gain or loss account plus a balance sheet adjustment account, then reverses it at the start of the next period. A **realized** difference arises when the open item is actually cleared: the full exchange rate movement between posting and payment is posted to a realized gain or loss account and stays on the books. | Aspect | Unrealized difference | Realized difference | | -------- | ------------------------------------------------- | ------------------------------- | | Trigger | Period-end valuation of open items (F.05) | Clearing or payment of the item | | Posting | Unrealized gain/loss and balance sheet adjustment | Realized gain or loss account | | Reversal | Reversed in the next period | Permanent | | OBA1 key | KDB and KDF valuation accounts | KDF clearing accounts | ## Foreign Currency Revaluation in SAP S/4HANA (FAGL\_FCV) Transaction F.05 and report SAPF100 belong to the classic general ledger. With the new general ledger and SAP S/4HANA, the valuation moves to transaction FAGL\_FCV, which is more flexible. * Each run is stored, so it can be displayed, reset, and repeated, and it uses delta logic to post only the change since the last run * It supports valuation areas, letting the same items be valued under several accounting principles, such as local GAAP and IFRS, in parallel * Results post into the Universal Journal (table ACDOCA), and the reversal is written directly with an auto-reversal date instead of a separate batch-input session F.05 still exists for compatibility, but FAGL\_FCV is the recommended transaction on current releases and integrates with the SAP S/4HANA financial closing cockpit. The revalued balances then flow into the standard [FI tables](https://www.guru99.com/important-tables-in-fi-module.html) and reports. ## FAQs ๐Ÿ“… How often is foreign currency revaluation performed in SAP? It is run as a periodic closing activity, normally at every month end and again at year end, for each period that still has open items or balances posted in a foreign currency. Many companies schedule it inside the financial closing cockpit. ๐Ÿ”€ What is the difference between currency valuation and currency translation in SAP? Valuation restates individual foreign-currency items at the closing exchange rate through F.05 or FAGL\_FCV. Translation converts whole local-currency balances into a group or hard currency for consolidation and reporting, and does not touch the original open items. ๐Ÿ” Are foreign currency valuation postings reversed automatically? Yes. Classic F.05 creates the reversal through a batch-input session dated the first day of the next period, while FAGL\_FCV posts it directly with an auto-reversal date. Unrealized differences therefore never remain on the books permanently. ๐Ÿงพ Does revaluation change the original accounting document? No. SAP posts a separate valuation document to a balance sheet adjustment account and an unrealized gain or loss account. The source invoice, its amount, and its history stay untouched, which keeps a clear audit trail. โš ๏ธ Why does F.05 post no differences for some accounts? The account must be in scope of the valuation method and hold foreign-currency amounts. Open-item accounts need a KDF entry in OBA1, and balance sheet accounts need a KDB exchange-rate-difference key in their master data, or the run finds nothing to value. ๐Ÿค– How can AI help with foreign currency valuation at month-end? Machine learning validates exchange rates, flags accounts with unusual swings, and forecasts the close impact before postings are made. SAP Business AI and the Joule copilot embed this anomaly detection in the automated closing cockpit. ๐Ÿ’ก Can GitHub Copilot help automate SAP currency valuation reporting? [GitHub Copilot](https://github.com/features/copilot) drafts the ABAP or CDS view code behind custom valuation extracts and reconciliation reports. It does not run F.05 itself, so every generated report should be tested in a sandbox client first. ๐Ÿ“† What is the valuation key date in foreign currency revaluation? It is the date whose exchange rate SAP applies to the valuation, normally the last day of the period being closed. Open items are revalued using the rate maintained in OB08 for that key date. #### Summarize this post with: ChatGPT Perplexity Grok Google AI **Stay Updated on AI** **Get Weekly AI Skills, Trends, Actionable Advice.** ##### Sign up for the newsletter Subscribe for Free You have successfully subscribed. 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