Foreign currency assessment

Theory-Why do currencies need to be evaluated?

According to Enterprise Accounting Standard No. 19th-foreign currency conversion, in order to regulate the accounting processing of foreign currency transactions, the conversion of foreign currency financial statements and the disclosure of relevant information, this requires currency evaluation. In a sense, it is for the needs of financial statements. Now let's talk about it. (because everyone is Chinese, we just use PRC as an example. It's boring to discuss other people's affairs .)

Currency assessment is available only when foreign currency transactions exist.. Foreign Currency Transactions refer to transactions denominated or settled in foreign currency. Foreign currency is the currency other than the enterprise accounting standard currency (our standard currency is RMB ). Foreign currency transactions include: (1) Buying or selling goods or services denominated in foreign currency; (2) borrowing or lending foreign currency funds; (3) other transactions denominated or settled in foreign currency.

The evaluation should be divided into foreign currency and foreign currency non-currency items.I don't know why it is so complicated. We should not look for concepts as teachers do, so let's do some practical work.Foreign currency and currency items:The monetary capital held by an enterprise and the assets and liabilities that will be collected at a fixed or identifiable amount. It mainly refers to monetary funds and related exchanges.Foreign currency non-monetary items:It refers to a project other than a monetary project (it is better not to mention this interpretation ). Mainly inventory, long-term equity investment, fixed assets, and intangible assets.

The assessed exchange rate.Foreign currency and currency items, using the balance sheet dateSpot Rate Conversion. The exchange difference between the spot exchange rate on the balance sheet day and the spot exchange rate on the initial confirmation or the previous balance sheet day is included in the current profit and loss. This means that we use the exchange rate of the day when the report is issued. It should be noted that this is an evaluation of the exchange rate. Foreign currency non-monetary items measured at historical costs,It is converted by the spot exchange rate on the day of the transaction.Foreign currency non-monetary items measured at fair value,The spot exchange rate on the day is determined based on the fair value.Here we will discuss with you the historical cost valuation and fair pricing issues. For example, the historical cost is the book cost. For example, if a car was bought for three years, the cost was 0.1 million at that time, and 0.1 million was the historical cost. But now it takes 80 thousand to buy the same car as the one bought three years ago. 80 thousand is called the reset cost. Historical costs are generally calculated for real estate. Let's look at the fair value, also known as the fair market price and fair price. The price determined by the buyer and the seller under the conditions of fair transactions, or the deal price that the non-related parties can buy and sell under the conditions of fair transactions. Note that there is no association between the two sides. If the store is opened by a boss, it will be unfair. For example, investment real estate. Some other equity investments must adopt fair value. After talking about this, it is actually very easy to know, no matter what pricing is used, that is, to use the exchange rate on the trading day at that time. To sum up, we can adopt two methods in terms of exchange rate: Transaction exchange rate and approximate exchange rate. See Article 10 of Enterprise Accounting Standards No. 19th-foreign currency conversion,During the initial confirmation of foreign currency transactions, the foreign currency amount should be converted into the bookkeeping standard currency amount at the spot exchange rate on the date of occurrence of the transaction; it can also be determined in a reasonable way by the system and converted in a manner similar to the daily spot exchange rate in the case of a transaction.. Approximate exchange rate: for example, the current exchange rate is,. 2 on April 9, 1st day of last month. Now I can use an approximate exchange rate with a little difference, such as. 1. Using an approximate exchange rate can reduce the complexity of accounting and facilitate exchange rate adjustment.

Practice-how is monetary evaluation applied in actual business?

Let's take a simple example to see how the currency evaluation is applied in practice? For example, a company keeps an account in RMB, and Foreign Currency Transactions use real-time exchange rates. The following businesses occur in daily life:

Business 1: USD 500,000 in USD (rate. 1.Focus: This business only needs to adopt the spot exchange rate.DR: Deposit 0.5 million * 8.1 Cr: Share Capital 405,000

Business 2: purchase equipment abroad (rate:) USD 400,000, Import freight 20,000, installation fee 10,000. DR: asset 3,230,000 Cr: Deposit-USD 3200000 deposit-RMB 30000

Business 3: product sales, (rate. 05) Price: 200000 USD. Payment not received. DR: receivables 1610000 Cr: Revenue 1610000

Business 4: at the end of the month, you will receive a receivables of USD 300000 (rate. 12) Dr: Bank-USD 2436000 Cr: receivables of 2436000

The evaluation is as follows:Calculate the outsourcing balance of foreign currency, then calculate the base currency at the end of the month at the spot exchange rate, and then calculate the base currency balance for accounting-adjust the base currency before accounting. That is, the adjusted amount. Enter the "Exchange Profit and Loss" subject. In the above case, we need to calculate the corresponding data. Taking bank deposits as an example: 500000*8.12 = 4060000 (the end of the month), then the business difference for this month = 4060000-(780000 + 4050000-3200000 + 2436000) =-6000rmb now we understand the basic principles of currency evaluation.

System-how is monetary evaluation implemented in the SAP system?

Principles of Foreign Currency evaluation in the SAP system: The assessment of the outstanding items is when the foreign currency exchange rate changes, statistics on the differences caused by changes in exchange rates for subjects with foreign currency outstanding items are collected by subject type, currency, and sub-lending respectively, the change amount is adjusted based on the Account type and currency.

Configuration instructions:

Step 1: Define the Evaluation Method

Post per line item-Display projects by line. The evaluation report displays results by line item.

Always evaluate-Always evaluate.

Line item-Account by line. This method makes the evaluation results easier to check, but may increase the time required for running the program.

Document Type-Credential type. SA.

Exchrate type for debit bal-Determine the exchange rate. Determine the type of the evaluated exchange rate: P. Note that this currency and M should not be set as one. Remember what we mentioned earlier. One is the spot exchange rate of the transaction, and the other is the assessed exchange rate, the difference is exchange profit and loss.

Step 2: Define the exchange profit and loss subject (oba1)

 

Transaction: Select KDB-exch. Rate diff. Using exch. Rate key.

The charge subject corresponds to the "exchange loss ", revenue corresponds to "exchange income" (in this activity you define the numbers of the accounts to which you want the system to automatically post realized exchange rate differences when clearing open items ). The difference is that the general ledger balance evaluation is defined here. No assessment is made for outstanding items.

Step 3: Define a Balance Assessment subject (ob09)

Exchange rate difference implementation-- The account that generates the exchange rate difference;Evaluation-- Subjects with different time difference accounting for foreign currency evaluation;Conversion-- The actual settlement time difference is different between the offset and the Accounting Account (only available in version 4.7 ). Note that do not enter anything in the currency field. The exchange rate difference offset adjustment subject generated by this configuration settlement credential does not produce exchange rate difference accounting.

 
Description of SAP system Foreign Currency Evaluation:

Foreign currency evaluation policy:

Type 1: end-of-period evaluation, which is reversed at the next stage.

This evaluation strategy is based on a relatively accurate evaluation of the profit and loss caused by changes in foreign exchange. The profit and loss caused by the account is always attached to the account until the account is settled. It should be noted that, if this method is used, an evaluation should be conducted during each period, regardless of whether there are new exchange rate changes.

Adjustment of loan/loan subject/debit/exchange profit and loss subject during assessment-transfer at checkout

Loan/loan exchange profit/loss subject loan/loan adjustment subject

At the time of checkout, offset adjustment subject debit/debit adjustment subject loan/debit exchange profit and loss subject

In the final result, the balance of the adjusted subject and the exchange profit and loss subject is offset.

Type 2: end-of-period evaluation. Do not rush back.

This evaluation only cares about the profit and loss during the exchange rate change period, regardless of the account. After the evaluation is made during the period of Exchange Rate Change, the difference is automatically transferred to the profit and loss subject, and the corresponding adjustment subject is recorded. This difference is transferred in the current period, but will not be asked in the future. Until this account is cleared, the exchange rate difference is automatically offset to the conversion adjustment subject generated during the evaluation.

Adjustment of loan/loan subject/debit/exchange profit and loss subject during assessment-transfer at checkout

Adjust the account (offset to adjust the account) at checkout)

In the final result, the balance of the adjusted subject and the exchange profit and loss subject is offset.

Third: not evaluated.

No matter when the foreign currency exchange rate changes, it is not evaluated. The advantage of this strategy is that the operation is simple, but the balance sheet cannot reflect the actual values of foreign currency and local currency. Only when the account is cleared can the exchange rate change be directly transferred to the exchange profit and loss subject.

Application description:

First of all, the subject master data should be noted that the subject that uses the base currency can be used to account for the business of other currencies, while the subject that uses other currencies can only be transferred to the business of the specified currency. To put it simply, if the USD account is used, it can only be used for the USD business, rather than the RMB business.

Common business scenarios

Scenario 1: manually adjust the exchange rate difference (F-05 ). Manual adjustment simplifies the exchange rate problem. In this way, only accounts of foreign currency users are processed. Dr: Bank Cr: exchange profit and loss. This method is relatively simple, but strictly speaking it does not meet the prc gaap requirements.

Scenario 2: the system automatically adjusts the differences.

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Notes

The Assessment of Foreign Currency outstanding items is the adjustment credential made after separate statistics by lending. If the account is not promptly cleared, the system will separately count all borrowers and lenders, which is a waste of time and generates additional assessment creden. If the data is written off but not operated normally, the reverse credential is processed. The effect is the same as that of the reverse credential.

For accounts receivable and payables, if there is a change in the exchange rate during receipt/payment, the system will automatically transfer the difference to the exchange profit and loss subject. If other payment methods are used, the difference cannot be automatically transferred. For foreign currencies, the same amount often cannot be found in time. For example, the supplier payable is automatically generated when the invoice is received, and the payable account has a credit balance. According to normal business operations, the outstanding items should be handled for the supplier during payment, which will automatically clear the account, and the differences due to exchange rate changes will also automatically generate exchange profit and loss creden. The outstanding ledger of this supplier is more standard. If you make credit item creden in the general ledger at the time of payment, the difference will not be transferred, and the amount of outstanding items will increase.

When adding an accounting subject, if foreign currency is involved, consider adding background configurations for evaluation. Configuration modification should also be considered when foreign currency business is added to the original accounting subject. Due to a lack of understanding of the evaluation policy, the foreign currency evaluation after the launch has not been conducted in accordance with the System Configuration Requirements, resulting in some abnormal creden. We recommend that you clear accounts in the system before performing a new assessment. In terms of Account Clearing. Clear all accounts receivable and payable, and process abnormal long-term accounts. In terms of adjustment. Fully confirm the creden generated in the settlement. If the creden。 are abnormal, manually adjust the creden.

By the way, a non-related question is answered,How to query the ing between Po and invoiceYou can use the rbkp and rseg tables to establish a relationship and then query it in the query. I woke up early every morning and didn't know who I was working? For yourself or for the house? Sometimes I will think about what the TMD school is? In the end, it is not a waste of time to learn how to do it. Recently, I am also working on financial improvement. Maybe I am very lazy recently. I don't have to forget the CPA and things I used to take exams over the past few days. Now I am here to share with you. Who write these things? For myself or beginners? Perhaps, a word of thanks has satisfied me.