Revaluation of Exchange Rates

Owned by Kwaku Konadu Opuni (Unlicensed)
Last updated: Jun 20, 2023 by ekonadu
3 min read

These adjustments are done to revalue all the customer ledger entries, vendor ledger entries and bank ledger entries. You can run the process in real time or schedule it to run by using a batch. When you define the settings for the revaluation process, be sure to verify whether you want to print a report of the results.

To perform Revaluation an end of month revaluation of currency.

1. Choose the Search icon, Currencies, and then choose the related link.

 

 

 

2. On the Currencies page, click on Process and Select Adjust Exchange Rate page.

 

 

3. On the Adjust Exchange Rate page,

  • Starting Date : Specifies the beginning of the period for which entries are adjusted. This field is usually left blank, but you can enter a date. Note: Best practice is to leave it blank so any adjustments you missed previously can be captured.

  • Ending Date : Specifies the last date for which entries are adjusted. This date is usually the same as the posting date in the Posting Date field.

  • Posting Date: Specifies the date on which the general ledger entries are posted. The posted entries appears at the Exchange Rate Adjustments Registers. This date is usually the same as the ending date in the Ending Date field.

  • Document No: Specifies the document number that will appear on the general ledger entries that are created by the batch job. For example ADJUST MAY EX.

  • Adjust Customer, Vendor and Bank Accounts: Specifies if you want to adjust customer, vendor, and bank accounts for currency fluctuations.

  • Adjust G/L Accounts for Add.-Reporting Currency: Specifies if you want to post in an additional reporting currency and adjust general ledger accounts for currency fluctuations between LCY and the additional reporting currency.

4. Click on OK.

 

After the adjustment of exchange rates, the changes will be posted in the general ledger entries as shown in the screenshot below.

Now to see the differences, search foreign currencies and choose the related link.

Now filter the currency which you made the adjustment on, and click on preview.

A report that contains the summary of the various balances of the customer or vendor or the bank accounts.

The summary contains;

  • The balances of customers or vendors that have foreign currency transactions that have been revalued. The following balances are shown:

    • The total original balance in the foreign currency.

    • The total foreign currency amount in the accounting currency, as of the previous revaluation.

    • The total foreign currency amount in the accounting currency, as of the current revaluation.

    • The difference between the previous and current revaluation. This difference is the additional unrealized gain or loss.

  • The total unrealized gain or loss for each currency.