SAP S/4HANA Finance

Currency Valuation

A quick practice page covering foreign currency valuation in SAP S/4HANA, including the replacement program for legacy valuation processing and the basic master-data requirement for currencies.

Practice Questions

1 Program Replacement

Which currency valuation program is replaced by FAGL FCV?

  1. A. FAGL_FC_VALUATION
  2. B. SAPF100
  3. C. FAGL_VALUATION
  4. D. SAPF130K

Correct Answer

A - FAGL_FC_VALUATION

Explanation

In SAP ECC systems using New General Ledger, FAGL_FC_VALUATION was used to revalue open items and balances in foreign currencies. In SAP S/4HANA, this process is handled by the more advanced FAGL_FCV program.

FAGL_FCV is better aligned with S/4HANA architecture and supports newer processing requirements, including:

  • Simulation ledgers, giving finance teams more flexibility during valuation runs.
  • Error Correction and Suspense Accounting, which helps reduce issues caused by batch input session errors.
  • Real-time processing behavior that better fits the S/4HANA finance model.

The other options are not the right fit: SAPF100 was used for Classic GL valuation in older systems, FAGL_VALUATION is not a valid report, and SAPF130K is used for customer balance confirmations rather than currency valuation.

2 Currency Master Data

Every currency used in SAP S/4HANA must have a…

  1. A. Exchange rate type
  2. B. Currency key assigned

Correct Answer

B - Currency key assigned

Explanation

Every currency used in SAP S/4HANA must have a currency key. The currency key acts as the system identifier for the currency across transactions, reporting, and valuation processes.

The key is usually a three-letter code such as USD, EUR, or JPY, and is stored in SAP table TCURC, the master list of currency codes.

Important distinction: exchange rate types, such as M for average rate or B for bank buying rate, are important for conversion and valuation processes, but they are not mandatory just to define every currency in the system.