FX Difference (Currency Revaluation) Report
Automate period-end FX valuation — see realized and unrealized differences clearly.
What problem does it solve?
Period-end FX valuation is complex and error-prone; separating realized from unrealized differences is manual and runs under audit pressure. The standard process doesn't always present local and IFRS requirements clearly.
How does the solution work?
The Conforcus FX difference report automates period-end currency valuation, reporting realized and unrealized differences separately. Valuation postings are produced traceably and audit-ready.
What changes in practice?
The solution is integrated with the standard foreign currency valuation process in FI (FAGL_FC_VAL). At period end, open items and balances in foreign currency are valued and the valuation postings are generated by the system. The report shows separately the realized FX difference arising from items cleared during the period and the unrealized difference coming from period-end valuation. Periodic reports bring the valuation results and the split of FX differences together by period. The setup is configured to support both VUK and IFRS bases, so the valuation results for the two reporting bases are followed without being mixed.
At close, the team checks the result of the valuation run and the periodic report instead of separating FX differences by hand in spreadsheets. For the team, closing work moves from calculating to verifying results. Since valuation postings are traceable as documents, any FX difference amount can be traced back to the valuation and the period it came from. Auditor questions on the split between realized and unrealized differences are answered from the same report. Because the same method is applied every period, results remain comparable across periods and the time spent on explanations is reduced.
Benefits
- Period-end FX valuation automated and error-free
- Clean split of realized vs. unrealized differences
- Traceable, audit-ready valuation postings
Where it sits in SAP
Integrated with FI foreign currency valuation (FAGL_FC_VAL); produces realized/unrealized split, valuation postings and periodic reports. Configured to support VUK and IFRS bases.
Who it is for: CFO, Finance, Tax & Audit
Frequently asked questions
How does the report separate realized and unrealized FX differences?
A realized FX difference arises on foreign currency items cleared by a collection or payment, from the gap between the posting rate and the clearing rate. An unrealized difference comes from the period-end valuation of items that are still open. The report shows the two separately, so it can be explained how much of the FX difference in the financial statements comes from each source.
Does the solution replace the standard foreign currency valuation run (FAGL_FC_VAL)?
No: the solution is integrated with the standard FI foreign currency valuation process and builds on it. On top of that it adds the realized/unrealized split, the generation of valuation postings and periodic reports. Period-end valuation therefore runs automatically and the results are brought together in one reporting structure.
Can separate valuation results be produced for VUK and IFRS?
The solution is configured to support both VUK and IFRS bases, and valuation results are tracked and reported separately for each. How the two bases are separated in the system depends on the company's existing ledger structure and is assessed at the start of implementation. Valuation postings are produced traceably on both bases, giving the same level of explanation in an audit.