What is the role of the valuation method in the foreign currency valuation? Note: There are 3 correct answers to this question.

Question

Options

• ADetermine the exchange rate type
• BDefine the document type for the valuation posting
• CDetermine the G/L accounts for the valuation posting
• DDefine the posting and reversal date for the valuation posting
• EDefine the valuation procedure

• A
  77% (20)
• C
  15% (4)
• D
  8% (2)

Explanation

In SAP's foreign currency valuation (e.g., FAGL_FCV), the valuation method is a configuration object that acts as the central control parameter - it bundles together the how, what rate, and what document type. Options A, B, and E are correct because the valuation method directly defines the exchange rate type used to revalue open items (A), the document type assigned to the valuation postings (B), and the valuation procedure that governs the logic applied (e.g., always valuate, lowest value principle) (E).

Why C is wrong: G/L account determination is handled separately through account determination configuration (transaction OBA1), not the valuation method - the method tells the system how to valuate, not where to post.

Why D is wrong: The posting date and reversal date are entered at runtime when executing the valuation run - they are dynamic inputs per execution, not stored in the valuation method configuration.

Memory tip: Think of the valuation method as the "Rules Card" - it defines the rulebook (procedure), the exchange rate source (rate type), and the document stamp (document type). Anything entered on-the-fly at runtime (dates) or set up in a separate config object (account determination) falls outside its scope.

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