Question

Which objects must you define in customizing for foreign currency valuation in the ledger solution?

A) Valuation area
B) Valuation method
C) Valuation class
D) Valuation key

Answer 1

In the ledger solution for foreign currency valuation, the objects that need to be defined are the Valuation Area, Valuation Method, Valuation Class, and Valuation Key.

Step-by-step explanation:

In the ledger solution, several objects need to be defined for foreign currency valuation. These objects include the Valuation Area, Valuation Method, Valuation Class, and Valuation Key.

• Valuation Area: This is a specific area within the ledger where the foreign currency valuation takes place. It helps determine which currency exchange rates are used for valuation.
• Valuation Method: This defines the method used to determine the valuation of foreign currency positions. It can be the average rate, current rate, or historical rate.
• Valuation Class: This classifies the objects that need to be valued, such as balance sheet accounts, profit and loss accounts, or other types of financial assets.
• Valuation Key: This key specifies the parameters for the foreign currency valuation, such as the type of valuation, the allowed posting period, and the valuation date.