What is foreign currency restatement in SAP FI-GL-CU-MCA - Multi Currency Accounting?

SAP Term: foreign currency restatement

• Component: FI-GL-CU-MCA

• Component Name: Multi Currency Accounting

• Description: Valuates and updates the non-functional currencies local currencies of a MCA variant based on the previously valuated functional currency. You can also execute foreign currency restatement for non-position accounts. You execute it after position account valuation or monetary asset revaluation MAR. Example On a key date, the system translates the balance in the functional currency into a non-functional currency and compares it to the current balance of the non-functional currency. The system posts any valuation differences and updates the non-functional currency.

Smart SAP Assistant

• Key Concepts: 
  Foreign currency restatement is a process in SAP's Multi Currency Accounting (MCA) component of the Financial Accounting (FI-GL) module. It is used to restate the financial statements of a company in a foreign currency. This process is necessary when a company has transactions in multiple currencies and needs to report its financials in one currency. 
  
  How to use it: 
  In order to use foreign currency restatement, the company must first set up the MCA component in SAP. This includes setting up the exchange rate types, exchange rate tables, and other related settings. Once this is done, the company can then enter its transactions in multiple currencies and use the foreign currency restatement process to restate them into one currency. 
  
  Tips & Tricks: 
  When using foreign currency restatement, it is important to ensure that all exchange rates are up-to-date and accurate. This will ensure that the financial statements are accurately restated into the desired currency. Additionally, it is important to ensure that all transactions are entered correctly in order for the foreign currency restatement process to work properly. 
  
  Related Information: 
  For more information on SAP's Multi Currency Accounting component and how to use foreign currency restatement, please refer to SAP's official documentation or contact your local SAP consultant.