Name: Activating Advanced Foreign Currency Valuation Configuration Steps in SAP S/4HANA Cloud Public Edition
Uploaded: 2025-9-24
Duration: 680 s
Description: This video walks you through the configuration steps essential for activating advanced valuation in financial accounting. It will cover all, from defining semantic tags to setting valuation methods and account determination. Discover how to streamline your financial processes by assigning semantic tags to financial statement versions and setting up valuation rules.

Share feedback

<p>We are aware of intermittent issues in accessing the learning content</p>

We are aware of intermittent issues in accessing the learning content

Personalize your learning.

Why create an SAP account?

Enhance your learning experience

SAP Learning

Choose your subscription

Manage your subscription

Live Sessions

Hands-on Practice

Certification

My Learning

Ready to start learning?

Please try again later

Sorry, we encountered an error

Try again or reset results to continue browsing

We didn’t find what you’re looking for

To continue, please log in

Your session has timed out

Validate your skills and learning by completing the certification exam and gain a highly recognised accreditation.

Book your certification exam

Complete the assessment to validate your SAP PartnerEdge competency qualifications.

Ready to take your assessment?

Learn about the key features and essentials in the latest release to help you prepare for the Stay Certified assessment.

Prepare for assessment

Learn new skills you need at your own pace with our bite-sized lessons.

Prepare for certification

In your My Learning account you can view your certification and learn how to take your Stay Certified assessment.

Ready to take your Stay Certified assessment?

Explore {title} at SAP Learning. Find out more!

Assessment

Course Completion

Knowledge Badge

Certification Exam

Theoretical Exam

Schedule

External Course

Practical Exercise

Practical Test

External Hands-On

External Resource

Learning Journey

Learning Journey Assessment

Lesson

Live Session

Practice System

Quiz

Scenario Based Assessment

Course Assessment

Course

Stay Certified

Subscription

System Based Assessment

Test Out

Unit

Video

Video Playlist

Week

<div><div>This video walks you through the configuration steps essential for activating advanced valuation in financial accounting. It will cover all, from defining semantic tags to setting valuation methods and account determination. Discover how to streamline your financial processes by assigning semantic tags to financial statement versions and setting up valuation rules.</div></div>

Activating Advanced Foreign Currency Valuation Configuration Steps in SAP S/4HANA Cloud Public Edition

Welcome to Microlearning session on Advanced Foreign Currency Valuation Configuration Steps in S/4HANA Public Cloud Edition. Agenda of this session is to go through the configuration steps of Advanced Foreign Currency Valuation. Advanced Foreign Currency Valuation is part of Advanced Valuation in Financial Accounting. Advanced Valuation supports you in following the different accounting standards as per the requirement. As a part of prerequisite, we need to activate the advanced foreign currency valuation in S/4HANA Cloud so activate advanced valuation for an accounting principle. In the next step we need to define the semantic tag and assign semantic tag to financial statement versions. So, semantic tags are basically short identifiers we use to represent key figures they are assigned to things like financial statement versions or GL account hierarchies the idea is to make it easier to calculate measures and KPIs in Analytics reports In the next step, we need to define the rules for advanced foreign currency valuation. To use advanced foreign currency valuation, there are a few key rules and settings that need to be in place. So, we need to define rules for advanced foreign currency valuation and assign it to accounting principle. in the next step we need to define valuation method the valuation method contains the valuation approach that is used for carrying out a foreign currency valuation as a part of the closing operations so there will be multiple methods you can select the standard method and use for your foreign currency valuations. In the next step we need to define the account determination. So, we need to assign the GL Accounts to the account determination. So, we need to define FX unrealized gain and loss account and reset FX unrealized gain and loss account. Reset accounts are used for resetting valuation gains or losses from the previous advanced foreign currency valuation jobs when an open item is cleared. In this slide, we can see the configuration hierarchy and how the configuration steps are linked to each other. The first we need to activate the advanced foreign currency valuation. And then we need to define the accounting principle and financial statement versions. So, which normally will be created in the beginning and we need to assign financial statement version to accounting principle. then we need to define rules for foreign currency valuation and we need to assign semantic tag to your foreign currency valuation rule and valuation method and account determination to the foreign currency valuation rule and this foreign currency valuation rule will be assigned to your accounting principle and the semantic tag will be assigned to the financial statement version. So, this is the S/4HANA Cloud system so activate advanced valuation in this step you can see there are multiple accounting principle in the standard let's check this USGP US GAAP so it is activated advanced valuation it's already activated click on maintain fiscal year and period, for example this 0L so let's say 0L is activated for 1710 company code for 2023 and activation period is 1.  So, 1710 is the standard company code. So, once you activate the advanced valuation in the next step we need to assign financial statement version to your accounting principle. So, accounting principle you can see here in the first column so for example USGP US GAAP is assigned to 1799 YCOA. Chart of account is YCOA. In the next step, define semantic tag group. So you can define the semantic tag groups. So, there are multiple semantic tag groups here. Balance sheet, FCLS. So, FCLS is used for financial closing. For our advanced foreign currency valuation, we use the FCLS. so let us - if you want to create you can create it. We can use FCLS as of now. Define semantic tags for financial statement version. The SAP provides a set of pre-delivered semantic tags. These are all already used in standard reports and KPIs. It's important to know that we can't change or delete these pre-delivered tags because doing so would break the reports or KPIs that rely on them. There is a standard semantic tag for foreign currency valuation called FX Monetary Item, Relevant for Foreign Currency Valuation and we use this FX. If you want to define custom semantic tag, you can copy this and create one. And this semantic tag group is assigned to FCLS. So in the next step, assign semantic tag to financial statement versions. This step is very important, for example this financial statement version is defined here in the first column and semantic tags are assigned to the financial statement version and you can also see this Account From and Account To. These accounts are your open item or reconciliation accounts which is source account on which you are going to perform advanced foreign currency valuation. So, here we define the source GL accounts. In the next step we need to define the rules for advanced foreign currency valuation. So, there are two rules in the standard SKDV and STDV Key Date Foreign Currency Valuation and Time Dependent Foreign Currency Valuation we use Key Date Foreign Currency Valuation as of now. Select SKDV and define steps for foreign currency rule. So, here you have valuation rule steps you can define multiple valuation rule step according to your requirement. So, we select this zero zero one zero Valuate Receivables and Liabilities and here we can see Business Transaction Type is assigned to the rule step RFCV is Foreign Currency Valuation and assigned the Exchange Rate Type. So, Exchange Rate Type is M for foreign currency valuation you can create a custom exchange rate type and you can use that as well and here you can see the valuation method so there are multiple valuation methods in the standard as I mentioned earlier. So, you can use the suitable valuation method for your requirement. So, use always Valuate as of now and assign semantic tag to Foreign Currency Valuation. So, double click on this and you can see here so FX semantic tag FX is being assigned to current currency valuation. And in the next step assign reset FX unrealized gain account and reset FX unrealized loss account here and FX gain unrealized account and FX loss unrealized account. In this process, we only need to configure the Expenses GL account. That means we don't need to set up any source or adjustment accounts here. After this step, assign rules for foreign currency valuation to accounting principle. In this step, so for example, US GAAP, we assign the valuation rule called SKDV, which we have defined now.  Advanced foreign currency valuation is designed to operate at the accounting principle level, not at valuation area level as in classic foreign currency valuation. And let us try to run this foreign currency valuation. In advanced foreign currency valuation, we use schedule general ledger jobs to schedule our foreign currency valuation. Okay, click on this. So, in this job we need to define the template for example advanced foreign currency valuation and the job name is advanced foreign currency valuation step two start immediately you can schedule the job here in the step three company code for example 1710 and ledger 0L and valuation key date for example 6 June 30th 2025 test run and check you can go ahead and schedule the job now you can schedule a test run see job is scheduled if you want to perform the update run then the same step Advanced Foreign Currency Valuation. So, the job template as Advanced Foreign Currency Valuation  job name as Advanced Foreign Currency Valuation in the step 2 enter start immediately. Step 3, enter the parameter 1710 and ledger 0L key date is for example 06 June 30, 2025 so click on update run and check. You can go ahead and schedule the job. Click on schedule job Advanced Foreign Currency Valuation has been scheduled. Okay once the valuation run is completed the accounting entries will be posted automatically. If you would like to understand the postings in more detail as well as the overall concept behind advanced foreign currency valuation there is a separate video in the Microlearning series that covers the analysis I have included here you can see the advanced valuation in this tab you can see entire posting and analysis of the postings. Okay so if you want any additional learning topics, you can go to open.sap.com and you can go to help.sap.com for learning journeys. Thank you.