Introducing Advanced Valuation in Financial Accounting

As part of the intelligent closing processes, the Advanced Valuation processes are integrated with SAP S/4HANA as tasks in closing activities.

With Advanced Valuation in Financial Accounting you can carry out steps in your month-end closing processes with jobs that are set up in a similar way and are straightforward to use. Advanced Valuation supports you in accounting standards, for example, IFRS9. The following processes are part of advanced valuation and are realized as job templates in the Schedule General Ledger Jobs app:

• Advanced Foreign Currency Valuation
• Post Balance Sheet Reclassification
• Post Credit-Risk Based Impairment
• Post Discounting of Long-Term Assets and Liabilities

• Advanced valuation generally uses the delta posting logic.
• Only gain and loss G/L accounts are configured, thus a simplified account determination. No original (Recon/banks, and so on) and adjustment G/L (General Ledger) accounts are required.
• Posting to original G/L accounts are supported (Reconciliation, Bank, and so on).
• Processing status details per line item.
• Parallel accounting and valuation posting into all currency types.
• Link between valuation journal entry and original journal entry.
• Grouping rules for the valuation of several items. For example, if there is an invoice and it has a debit/credit note then both will be grouped together. There will be one valuation posting for the group.

Advanced valuations steps must be carried out in the following sequence:

The best point in time to activate advanced valuation is when your fiscal year has ended. You can activate advanced valuation at any point in time in your fiscal year, but this requires extra effort.

Once you have activated Advanced Valuation, you can no longer use the following apps:

• Perform Foreign Currency Valuation (FAGL_FCV)
• Regroup Receivables / Payables (FAGLF101)
• Perform Further Valuations (F107)

You can also no longer use the following job templates:

• Foreign Currency Valuation
• Regroup Receivables/Payables
• Provision for Doubtful Receivables

Here is a helpful link:

Advanced Valuation in Financial Accounting