Hi Priya,
let me start with a short explanation.
there are two possibilities for FX positions valuation at a given (key) date:
- the difference (incremental) method - only the relevant valuation flows are calculated and posted on a certain valuation date. On the next valuation date a difference between the last valuation and the current date is calculated and posted. In SAP wording it means that valuations are generated on the base of assigned Position Management Procedure and up-to-date Market prices. Selection of the difference method is controlled by a field 'Valuation category' in transaction TPM1 screen - choose 'valuation without reset' relevant variants (see help or F1 in the respective field);
- the reset (full reversal) method - in addition to the valuation flows, reset flows are generated for the day following the valuation key date. You can therefore see the effects of the valuation only on the valuation key date. Selection of the reset method is controlled by a field 'Valuation category' in transaction TPM1 screen - choose 'valuation with reset' relevant variants (see help or F1 in the respective field).
based on your description provided, you should choose valuation with reset.
Kind regards,
Renatas