In this configuration you define the specifications required for the valuation of foreign currency balances e.g. Bank accounts holding foreign exchange and Open items in foreign currency e.g. Customers and Vendors

1. Define Valuation methods

IMG > Financial Accounting > General Ledger Accounting > Business Transactions > Closing > Valuating > Foreign Currency Valuation > Define valuation methods

SAP uses exchange rate type M to value all foreign currency items. M is the average rate of any foreign currency.

In this step, you define your valuation methods for the open items. With the valuation method, you group specifications together, which you need for the
balance and individual valuation. Before every valuation run, you specify the required valuation method.

SAP provides various valuation methods. You can create your own key starting with Z.

SAP provides following valuation methods: -

Valuation method BSK is used for foreign currency account balances Valuation for e.g. Bank account held in foreign currencies

In the valuation procedure various configuration options are available