You perform foreign currency valuation for open items of your supplier accounts. The valuations will be used only for period end reporting and should then be reversed. What account does the system…

Question

Options

• AIndividual supplier accounts with special G/L indicator
• BAlternative reconciliation G/L account
• CAdjustment G/L account for foreign currency
• DSupplier reconciliation G/L account

• A
  3% (2)
• B
  18% (12)
• C
  71% (48)
• D
  9% (6)

Explanation

When SAP performs foreign currency valuation on open supplier items, it posts the unrealized gain or loss to a dedicated Adjustment G/L account for foreign currency (configured in customizing via OBA1). This account is specifically designed to hold temporary valuation differences that will be automatically reversed at the start of the next period, keeping the original reconciliation account untouched and reflecting only actual transaction amounts.

Why the distractors are wrong:

• A (Special G/L indicator): Special G/L indicators handle things like down payments or guarantees - they redirect postings within the subledger for specific business scenarios, not for valuation differences.
• B (Alternative reconciliation G/L account): Alternative reconciliation accounts are also tied to special G/L transactions, not to currency revaluation postings.
• D (Supplier reconciliation G/L account): The standard reconciliation account records actual AP transactions; SAP deliberately avoids posting valuation differences here to preserve its integrity.

Memory tip: Think of the Adjustment G/L account as a "temporary holding tank" - it captures the unrealized FX difference for reporting, then gets swept clean on reversal, leaving the reconciliation account as if the valuation never happened. The word adjustment is the key: it's adjusting the books temporarily, not permanently.

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