What is local valuation in SAP FI-LC - Consolidation?

SAP Term: local valuation

• Component: FI-LC

• Component Name: Consolidation

• Description: The local valuation of a balance sheet is equivalent to the individual financial statements of a company according to local guidelines. From a view, a company's financial statement data of corporate valuation can also enter the SAP System as a local valuation.

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• Key Concepts: 
  Local valuation is a feature of the FI-LC Consolidation component of SAP. It allows for the consolidation of financial data from multiple legal entities into a single set of financial statements. This is done by using local currency values for each legal entity, which are then converted into a single currency for reporting purposes. 
  
  How to use it: 
  To use local valuation, first configure the FI-LC Consolidation component in SAP. This includes setting up the currencies to be used, as well as the exchange rates between them. Once this is done, the local currency values for each legal entity can be entered into the system. The system will then automatically convert these values into a single currency for reporting purposes. 
  
  Tips & Tricks: 
  When configuring the FI-LC Consolidation component, it is important to ensure that all currencies and exchange rates are up to date. This will ensure that the local currency values are accurately converted into a single currency for reporting purposes. Additionally, it is important to ensure that all legal entities are properly configured in the system, as this will ensure that all data is accurately consolidated. 
  
  Related Information: 
  The FI-LC Consolidation component of SAP also includes features such as intercompany eliminations and foreign currency revaluations. These features can be used in conjunction with local valuation to further improve the accuracy of financial reporting. Additionally, SAP also offers other components such as Financial Accounting and Controlling which can be used to further enhance financial reporting capabilities.