What is foreign currency restatement in SAP FS-BA-PM-AFP - Accounting for Financial Products?

SAP Term: foreign currency restatement

• Component: FS-BA-PM-AFP

• Component Name: Accounting for Financial Products

• Description: Valuates and updates the non-functional currencies parallel currencies of a legal entity based on the functional currency valuated beforehand. Run foreign currency restatement after FX position account valuation or monetary asset revaluation MAR has run. &EXAMPLE& On a key date, the balance in the functional currency is translated into a non-functional currency and compared to the current balance of the non-functional currency. Potential valuation differences are posted and the non-functional currency is updated.

Smart SAP Assistant

• Key Concepts: 
  Foreign currency restatement is a process used in SAP's Accounting for Financial Products (FS-BA-PM-AFP) component to adjust the value of a financial instrument when the exchange rate changes. This process is used to ensure that the financial instrument is accurately valued in the company's books. 
  
  How to use it: 
  In order to use foreign currency restatement, the user must first enter the current exchange rate into SAP. This can be done by going to the “Currency Exchange Rates” menu in the FS-BA-PM-AFP component. Once the exchange rate has been entered, the user can then select the financial instrument that needs to be restated and enter the new exchange rate. The system will then automatically adjust the value of the instrument according to the new exchange rate. 
  
  Tips & Tricks: 
  It is important to remember that foreign currency restatement should only be used when there is a significant change in the exchange rate. If there is only a small change, it may not be necessary to restate the financial instrument. Additionally, it is important to make sure that all of the necessary information is entered correctly before performing a foreign currency restatement. 
  
  Related Information: 
  For more information on foreign currency restatement, please refer to SAP's documentation on Accounting for Financial Products (FS-BA-PM-AFP). Additionally, there are many online tutorials and videos available that provide step-by-step instructions on how to use this feature in SAP.