I have been watching Hana tutorials for sometime. Never seen one with such good quality. Clear explanations, superb video and audio . It obvious that you have invested a lot of time on this. In short thanks and keep it coming.
You are an excellent teacher! Explaining the WHY before the HOW, and doing it very structured and understandable. So much better than all this indian pointandclick stupid not explaining anything crap. Thank you for your nice video!
You're welcome, I like simplifying topics. To be honest I watch a lot of great Indian SAP Consultants explaining complicated technical topics, they have very good knowledge of the subject that's very useful to experts
Ton...I respect your opinion....But do you know with limited resources Indian for the SAP world are making contributions.. Language or ascent can be a problem for you but not their dedication....On the top they don't charge...so will you please appreciate atleast their efforts...
Hi abdullah.i have never seen such a brilliant explanation in all of your videos and the best thing is giving all free.If someone like me interested in getting coaching on some topics in details like topics related to costing in S4HANA SPECIALLY
Amazing, whenever I go to SAP documentation I get lost. As if they do it on purpose. They make you think it's rocket science. Thank you Sir. God bless you, everything is crystal clear as usual.
Thank you so much for such a easy way to understand forex transaction. I'm learning a lot watching your videos about different GL postings. Thanks again and keep uploading such training videos for us.
Thanks! All the configuration steps are available in the documents library shared with the elite / platinum channel members www.youtube.com/@abdullahgalal/join
Thank you man, you have very clear explanation, Allah gives you more success in your both life :) And I have a question maybe you read the relevant doc; Can we realize the currency difference on control code currency; purchasing currency = EUR Controlling currency = USD Company code currency=EGP
Your you tube was excellent. I do have a couple questions. 1. This demo showed the FAGL_FCV transaction for the valuation at month end. Your document displays showed TC and LC but not GC. Was there was an update to group currency as well? 2. What about the FC translation program? Are you using that as well? Here is my understanding. a. FC Valuation is used to re valuate TC to LC b. FC Translation is used to translate TC or LC (depending on config) to GC While in an ECC 6.0 system or S/4 Hana 1610 system the transaction codes appear to be the same for the month end jobs. However I thought that there were improvements in S/4.
Thank you Brenda, currency translation is used to translate to group currency for consolidation, check this blog here answers.sap.com/questions/11550050/index.html As for improvements in S4HANA, the transaction changed from FAGL_FC_VAL to FAGL_FCV not sure what changed in the performance or so
True, but the translation program has changed. It is translating document currency to group currency. It used to translate local currency to group currency. I fully understand the valuation program that you showed in your youtube. The translation program was not addressed. I'm trying to figure out where in config to get the translation program to translate from local to group.
Hi Abdullah, this is very helpful! Do you have a playlist to explain how to configure the acc postings to capture the exch gain/loss (min 7:36)? Thanks!
اشكرك عالشرح الرائع والوافى .. وارجو الرد على سؤال محير بالنسبة لى .. ما هو الفرق بين KDB و KDF .. حضرتك هنا استخدمت الKDF .. فياريت لو توضح الفرق بخصوص امتى استخدم اى منهم .. ولك جزيل الشكر
سؤال عظيم، لم أجد شرح اوفى من هذا wiki.scn.sap.com/wiki/plugins/servlet/mobile?contentId=477826180#content/view/477826180 اقرأه و أخبرني إذا أجاب عن سؤالك
اللى فهمته ان KDB بيستخدم لتقييم الارصدة الموجودة فى الميزانية (non-open items) زى ارصدة البنوك مثلا لانها بطبيعتها اى تغير فى سعر الصرف عليها بيكون realized gain/loss ، اما ال KDF بيستخدم لحسابات الopen items زى العملاء والموردين لانها بيبقى فيها احتمالين اما realized او unrealized .. اتمنى اكون فاهم صح على قد المرحلة اللى انا فيها دلوقتى لان فيه تفاصيل كتير لسه موصلتلهاش
Hi, Very detailed application. Thanks for it. Based on your video i tried to POC by creating Extension ledger with extension ledger type S(Simulation) and completed required FCV configuration. But when i try to exceute FAGL_FCV with simulation option and if i try to enter simulation ledger i got error Enter a valid simulation ledger (Message no. FAGL_CLOSING_ACT214). i have cross checked config and everything looks good. Any idea what could be the issue. Thanks
Thanks Abdullah! Very well explained How about going further with a new video explaining the usage of the simulation ledger? As it is new in s4hana? Thanks again
Is it possible to get information about valuation by vendor and contract? Because we do information in our local currency to give report internal and external users. Thanks in advance.
Hi, currently my client wants to remove the GL Advance Payment from the open item config of Foreign Currency Revaluation. As they thought that GL Advance is not a monetary asset, so it should not be revaluated. What if I take out the down payment GL from revaluation config? any ideas what would be the impact?
Thank you so much for the foreign currency valuation business process you have showed here. You have explained so well especially on payable domestic adjustment account.. this is a great tip i have learned from you. Always obliged to you for the great knowledge you share here.
Another Excellent Video. you have used payable domestic adjustment account while posting the unrealized exchange rate differences. Is it open item managed account?
Hi sir...really it was a very nice explanation..i understood what i was looking for..but..it could be better..if you will have another video regarding how it would have impact in financial statement & p/l accounts as well and how do we reconcile it....& kind of error we may face ..please its my request sir.☺☺
I love the way you explained it. How can we check if FX currency posted ok? I would like to do a validation check. Like going in TB AND getting FX transations and simply check. Is it possible?
As per IAS 21, foreign currency valuation difference is recognised in profit or loss. So in the next year, we have to reverse profit or loss we recognised this year because realized gain/loss in the nex year (when the payment is made) includes profit or loss recognised in this year?
Realized gain/loss happens only when the actual payment is done so it can't happen again next year for the same items so no need to reverse that Unrealized is reversed and recalculated every month
Do you mean The general ledger didn't affected by transaction of revaluation at the end of reporting date So supplier balance in general ledger doesn't equal supplier balance in balance sheet As this transaction only for reporting ?
GL is impacted but in a different account than vendor reconciliation Vendor line items = vendor GL reconciliation account Vendor adjusted balance in BS = Vendor reconciliation GL + Vendor adjustment for FOREX GL
Check this amazing blog, there's no more I can say! blogs.sap.com/2019/05/06/s4-hana-finance-foreign-currency-valuation-transaction-fagl_fcv-simulation-ledger
Hello, Can you tell me same thing about the whey that SAP revert the unrealized differences posted and if from configuration we can control the logic of using loss or revenue accounts in the document generated for reverting it? Thanks
In OBA1 KDF we assign the FOREX gain / loss accounts for each open item GL account. These accounts are triggered either when we run the FOREX valuation (unrealized) or when we actually clear the document (realized). Watch the video for more details.
I always used the standard one, I suggest you check the SAP help for valuation method here help.sap.com/doc/3c51d7531a4d424de10000000a174cb4/2.6/en-US/f250d7531a4d424de10000000a174cb4.html
Hello sir , really liked your video. here i understand if we deal with foreign vendors or customers. but i am little confused about normal GL transactions , suppose we take a bank loan from a foreign bank . how to see the realized and unrealized profit or loss. please help me out sir.
Hello Mr Abdullah, like all other videos, this too is very conceptually informative. However, I have a query with respect to the explanation you gave in the video. For the invoice that was posted, corresponding payment entry was also posted, which would have closed the invoice. then how come Invoice got valuated for unrealized loss?
Let's say we posted an invoice today in month "X" and this invoice was paid in the following month "X+1" @ end of month "X" when doing the closing, we have to run the FOREX program and post unreallized FOREX gain/loss, the program will also post a reversal entry in beginning of month "X+1" @ Payment in month "X+1" the system will automatically post the realized FOREX gain/loss This is what I explained in the video, try watching it again after this explanation and I hope it will be clear
Both of them exist realized is when we actually do the payment or clearing and there's a FOREX différence unrealized is when we evaluate our open items at period end as explained in the video
Hi Abdullah, thanks for your video. Really helpful. I would like to know if you know about ECS - Error Correction and Suspense Accounting. This is bind to the FCV execution. Do you how it should be configured for S/4 Hana in order to catch errors when FCV is executed, and what are the different configurations points it has. Thanks for any help on this. Hugo S.
Thanks a lot for this comment! I never heard about ECS before and just read an SAP blog about it, sound very interesting. Please send me a message on LinkedIn and we can discuss more
Thank you so much sir...
I was struggling with the concept....but u made it easy.....God bless u
I have been watching Hana tutorials for sometime. Never seen one with such good quality. Clear explanations, superb video and audio . It obvious that you have invested a lot of time on this. In short thanks and keep it coming.
Thank you so much! they do take a lot of effort and time, and i enjoy every second of it :)
I confirm 🙏
Wow that's great very clear cut explanation, Masha Allah.. Allah make you success in all your efforts.👍
Thanks a lot, Amin
You are an excellent teacher! Explaining the WHY before the HOW, and doing it very structured and understandable. So much better than all this indian pointandclick stupid not explaining anything crap.
Thank you for your nice video!
You're welcome, I like simplifying topics.
To be honest I watch a lot of great Indian SAP Consultants explaining complicated technical topics, they have very good knowledge of the subject that's very useful to experts
Ton...I respect your opinion....But do you know with limited resources Indian for the SAP world are making contributions.. Language or ascent can be a problem for you but not their dedication....On the top they don't charge...so will you please appreciate atleast their efforts...
Great Abdullah! Very simple approach and clear conceptual explanation.
Glad it was helpful!
On the date of closing itself with update run is it reversal entry will also be passed or only unrealised/adj entry only be passed?
Very clear and crisp explanation on realized and unrealized valuation. Thanks for sharing your knowledge Abdullah.
My pleasure!
@@AbdullahGalal 0000000009
Thank You for your great Effort Mr. Abdullah.
I hope that you also completing the topics like that with Configurations part then it will be perfect.
Thanks a lot Shady, I just got to 5K subscribers and planning to do a config video as a celebration
Hi abdullah.i have never seen such a brilliant explanation in all of your videos and the best thing is giving all free.If someone like me interested in getting coaching on some topics in details like topics related to costing in S4HANA SPECIALLY
So nice of you, thank you
I work on Oracle but I still used this explanation. Great One.
Glad to know! thank you
Amazing, whenever I go to SAP documentation I get lost. As if they do it on purpose. They make you think it's rocket science.
Thank you Sir. God bless you, everything is crystal clear as usual.
Thank you Ahmed!
Thank you so much for such a easy way to understand forex transaction. I'm learning a lot watching your videos about different GL postings. Thanks again and keep uploading such training videos for us.
My pleasure!
Perfect explanation! Thank you for sharing this with all of us!
My pleasure!
SUPER explained including AMAZING logic. Very helpful! Many thanks!
Very welcome
Thanks Abdullah for taking the time and effort and sharing this quality content.
My pleasure!
Thank you so much for the spot on explanation! I could understand the relation now thanks!
Thank you so much Abdullah for explaining very clearly with examples...
You're most welcome
Thanks Abdullah. Clear Explanation !
Glad it helped
thank you so much Mr. Abdullah, your video really helpful to understand.
You are welcome Raina, thank you for letting me know, it makes me motivated to make more videos
I just need to say: Big thank you! Great teaching skills
You're very welcome! very appreciated
Great Explanation i understand so easy ...thank you
You're welcome, thank you for your comment
Excelent!
Thank you
Thank you Abdullah. It was really helpful to understand conceptually about Foreign Currency Valuation
You're welcome, thank you for your comment
Very well explained! Clear and Concise!
Glad it was helpful!
Easily understood about realized and un-realized. thanks.
You're welcome!
Thank You for your great Effort Mr. Abdullah.
It's my pleasure
Very excellent video. Waiting more videos related to controlling and costing and other fi videos in Arabic and English. many thanks for you
You're welcome, will get to CO eventually :)
Thanks for the explanation its crystal clear
You are welcome!
amazing i was able to solve an issue with this video... gave me better direction on where to look
Glad to hear that! thank you for the great feedback
very good and precise explanation
Glad you liked it
Thanks Dear Abdullah, very nicely explained, after watching your video I subscribed your channel
My pleasure, thank you for the sub
Good! Thank you HERO!
Did this help you at work?
Nicely Explained, Appreciating your efforts. Thank You, Abdullah :)
My pleasure
Great Effort in FCV. Thanks for creating nice video
Glad you liked it
Superb explanation... I think the difference amount is updated in BSBW table in ecc... Is this table same in S4 Hana?
your explanation is very well, but we need back end configuration for better understanding.
Thanks!
All the configuration steps are available in the documents library shared with the elite / platinum channel members www.youtube.com/@abdullahgalal/join
you could not explain it better! Well done :)
Thanks! 😃
Good work Abdullah! Thanks for easy explanation......
You're welcome!
Thank you man, you have very clear explanation, Allah gives you more success in your both life :)
And I have a question maybe you read the relevant doc; Can we realize the currency difference on control code currency; purchasing currency = EUR Controlling currency = USD Company code currency=EGP
Sir Thank You so much for the explanation.
Very welcome
Excellent explanation
Glad it was helpful!
عظمة يا بودي
❤
Very helpful video 👍👍,thanks
Welcome
Thank you for the demo. If we don't pay the invoice in February, will the reversing journal entry for unrealized gains occur every month till we pay?
Namaste !! Yella habibi very good explanation.
Thanks
Thank you sooooo much جزاك الله خيرا
Simply superb
Thanks a lot
Very good explanation. Please also make a video on difference between Revaluation and Translation Run
Will do my best! Thank you
Your you tube was excellent. I do have a couple questions.
1. This demo showed the FAGL_FCV transaction for the valuation at month end. Your document displays showed TC and LC but not GC. Was there was an update to group currency as well?
2. What about the FC translation program? Are you using that as well?
Here is my understanding.
a. FC Valuation is used to re valuate TC to LC
b. FC Translation is used to translate TC or LC (depending on config) to GC
While in an ECC 6.0 system or S/4 Hana 1610 system the transaction codes appear to be the same for the month end jobs. However I thought that there were improvements in S/4.
Thank you Brenda, currency translation is used to translate to group currency for consolidation, check this blog here answers.sap.com/questions/11550050/index.html
As for improvements in S4HANA, the transaction changed from FAGL_FC_VAL to FAGL_FCV not sure what changed in the performance or so
True, but the translation program has changed. It is translating document currency to group currency. It used to translate local currency to group currency. I fully understand the valuation program that you showed in your youtube. The translation program was not addressed. I'm trying to figure out where in config to get the translation program to translate from local to group.
Excellent explanation!!
Very good video it's really valuable
Thank you damodar
Thank you damodar
perfectly explained.. great job👍
Glad you liked it
very good video Thank you a lot Abdallah barak allah feek
Wa Feed Zeyad, thank you
amazing and simple explanation.. :)
Thank you Meera!
Subscribe for more 😉
@@AbdullahGalal already subscribed 🎉
Hi Abdullah, this is very helpful! Do you have a playlist to explain how to configure the acc postings to capture the exch gain/loss (min 7:36)? Thanks!
Here you go :)
blogs.sap.com/2016/03/04/foreign-currency-valuation-simplified/
*Thank you so much Abdullah!*
please share foreign currency valuation delta run concept where there is no need of reversals
Thanks a lot . Your explanation is superb.
Thank you, glad I could help
Thank you abdullah for clearly explaining the concept, can you please make a video on APP automatic payment program
Hi Raju, I already did! th-cam.com/video/PJ2cAPBxITI/w-d-xo.html
Hi abdulla….the way of explanation very good.. can you please explain lockbox thank you 😊
Noted, thank you Rakesh
Thanks for sharing your knowledge
My pleasure
Excellent explanation... easy way of understand Realised & Unrealised Loss... what is the T-code in ECC, to Run in month end?
Check the video @9:26
Thank you so much for your explanation
Thank you Vama
اشكرك عالشرح الرائع والوافى .. وارجو الرد على سؤال محير بالنسبة لى .. ما هو الفرق بين KDB و KDF .. حضرتك هنا استخدمت الKDF .. فياريت لو توضح الفرق بخصوص امتى استخدم اى منهم .. ولك جزيل الشكر
سؤال عظيم، لم أجد شرح اوفى من هذا wiki.scn.sap.com/wiki/plugins/servlet/mobile?contentId=477826180#content/view/477826180
اقرأه و أخبرني إذا أجاب عن سؤالك
اللى فهمته ان KDB بيستخدم لتقييم الارصدة الموجودة فى الميزانية (non-open items) زى ارصدة البنوك مثلا لانها بطبيعتها اى تغير فى سعر الصرف عليها بيكون realized gain/loss
، اما ال KDF بيستخدم لحسابات الopen items زى العملاء والموردين لانها بيبقى فيها احتمالين اما realized او unrealized .. اتمنى اكون فاهم صح على قد المرحلة اللى انا فيها دلوقتى لان فيه تفاصيل كتير لسه موصلتلهاش
Hi,
Very detailed application. Thanks for it. Based on your video i tried to POC by creating Extension ledger with extension ledger type S(Simulation) and completed required FCV configuration. But when i try to exceute FAGL_FCV with simulation option and if i try to enter simulation ledger i got error Enter a valid simulation ledger (Message no. FAGL_CLOSING_ACT214). i have cross checked config and everything looks good. Any idea what could be the issue.
Thanks
Amazing. Great Explanation.
Thank you Zeeshan, glad to help
Good document with nice explanation..If possible can you please add the foreign currency customization/configuration video, Thanks
Welcome, I'm only explaining the business process and concepts for now, the configuration can be easily found online once you understand the concept
Great video. Is is "Paybls Domestic Adj" account a regular account or a reconciliation account?
Regular account
It was really an excellent video
Thank you so much
You're very welcome
Thanks Abdullah! Very well explained
How about going further with a new video explaining the usage of the simulation ledger? As it is new in s4hana? Thanks again
Haven't used it in any projects, will have to throughly study it first
Is it possible to get information about valuation by vendor and contract? Because we do information in our local currency to give report internal and external users. Thanks in advance.
Nice explanation
Thanks and welcome
what is the difference between t-code f.05 and FAGL-FCV
Thank you for video
You are welcome
Hi, currently my client wants to remove the GL Advance Payment from the open item config of Foreign Currency Revaluation. As they thought that GL Advance is not a monetary asset, so it should not be revaluated. What if I take out the down payment GL from revaluation config? any ideas what would be the impact?
Thank you so much for the foreign currency valuation business process you have showed here. You have explained so well especially on payable domestic adjustment account.. this is a great tip i have learned from you. Always obliged to you for the great knowledge you share here.
Thank you for following Raj, glad I could help
But ,it would have great ,if you would have shown the Valuation are/Method and Un relized /relized configuration with screens. Thank you.
Keep watching, will get there eventually :)
Another Excellent Video. you have used payable domestic adjustment account while posting the unrealized exchange rate differences. Is it open item managed account?
Haven't checked this one, it's the default setup in the S4HANA 1709 from SAP CAL
What are the reports that end user can view in foreign currency valuation apart from the logs
Very nice, thaks
Most welcome
Hi sir...really it was a very nice explanation..i understood what i was looking for..but..it could be better..if you will have another video regarding how it would have impact in financial statement & p/l accounts as well and how do we reconcile it....& kind of error we may face ..please its my request sir.☺☺
I will try my best
I love the way you explained it. How can we check if FX currency posted ok? I would like to do a validation check. Like going in TB AND getting FX transations and simply check. Is it possible?
When you run the forex calculation program it shows a full report. You can compare the forex rates against the ones in transaction OB08
As per IAS 21, foreign currency valuation difference is recognised in profit or loss. So in the next year, we have to reverse profit or loss we recognised this year because realized gain/loss in the nex year (when the payment is made) includes profit or loss recognised in this year?
Realized gain/loss happens only when the actual payment is done so it can't happen again next year for the same items so no need to reverse that
Unrealized is reversed and recalculated every month
Do you mean
The general ledger didn't affected by transaction of revaluation at the end of reporting date
So supplier balance in general ledger doesn't equal supplier balance in balance sheet
As this transaction only for reporting ?
GL is impacted but in a different account than vendor reconciliation
Vendor line items = vendor GL reconciliation account
Vendor adjusted balance in BS = Vendor reconciliation GL + Vendor adjustment for FOREX GL
Thanks, u did not show where we should put the exchange rate for unrealized foreign currency valuation at month end.
Transaction code OB08
You r great 💖
Thank you so much 😀
@@AbdullahGalal R u from France Abdullah
Hi, thanks. Would like to see OBA1 - exchange rates differences configuration and how it is linked to the documents posted.
Check this amazing blog, there's no more I can say!
blogs.sap.com/2019/05/06/s4-hana-finance-foreign-currency-valuation-transaction-fagl_fcv-simulation-ledger
Jazakallah Brother
Jazana Allahu w Eyakom brother
Hi sir,
Nice explanation,how realised amount difference is adjusted when we do payement
The amount in foreign currency is multiplied by the exchange rat at time of payment and any difference in local currency is posted as FOREX
Hello, Can you tell me same thing about the whey that SAP revert the unrealized differences posted and if from configuration we can control the logic of using loss or revenue accounts in the document generated for reverting it? Thanks
I showed the reversal entry in the video.
The configuration for the loss or gain GL account is in transaction OBA1
Please make a video on how to create Functional Area wise P&L.
Will add to the plan
Hi Friend, When do accounts from Translation in OBA1/KDF get triggered? Thank you
In OBA1 KDF we assign the FOREX gain / loss accounts for each open item GL account. These accounts are triggered either when we run the FOREX valuation (unrealized) or when we actually clear the document (realized). Watch the video for more details.
could you please explain me what is valuation method in Foreign currency valuation
I always used the standard one, I suggest you check the SAP help for valuation method here help.sap.com/doc/3c51d7531a4d424de10000000a174cb4/2.6/en-US/f250d7531a4d424de10000000a174cb4.html
I am having issue with one of the GL account. This shows outstanding balance. How to sort this issue please let me know.
What's the issue?
Hello sir , really liked your video. here i understand if we deal with foreign vendors or customers. but i am little confused about normal GL transactions , suppose we take a bank loan from a foreign bank . how to see the realized and unrealized profit or loss. please help me out sir.
It's the same way, the same program can be used to valuare GL accounts, and when paying the loan you will get realized FX
Hello Mr Abdullah, like all other videos, this too is very conceptually informative.
However, I have a query with respect to the explanation you gave in the video. For the invoice that was posted, corresponding payment entry was also posted, which would have closed the invoice. then how come Invoice got valuated for unrealized loss?
Let's say we posted an invoice today in month "X" and this invoice was paid in the following month "X+1"
@ end of month "X" when doing the closing, we have to run the FOREX program and post unreallized FOREX gain/loss, the program will also post a reversal entry in beginning of month "X+1"
@ Payment in month "X+1" the system will automatically post the realized FOREX gain/loss
This is what I explained in the video, try watching it again after this explanation and I hope it will be clear
Per IFRS is valuation gain or loss termed as realised or unrealised ? Thank you
Both of them exist
realized is when we actually do the payment or clearing and there's a FOREX différence
unrealized is when we evaluate our open items at period end as explained in the video
Hi Abdullah, thanks for your video. Really helpful. I would like to know if you know about ECS - Error Correction and Suspense Accounting. This is bind to the FCV execution. Do you how it should be configured for S/4 Hana in order to catch errors when FCV is executed, and what are the different configurations points it has.
Thanks for any help on this.
Hugo S.
Thanks a lot for this comment! I never heard about ECS before and just read an SAP blog about it, sound very interesting.
Please send me a message on LinkedIn and we can discuss more
maintain FI customizing basics for archiving explain about this video sir
will do my best
Why did you reverse the entry at the last ?
Because we have posted as an adjustment entry, it has to be reversed in next month.
Nice video plz do videos on controlling
Thank you, will get to CO eventually