You can revalue G/L account balances in a foreign currency at a given rate, and create G/L postings that reflect the revaluation. This is very useful when doing year end and period end procedures, whereby you have the ability to automatically calculate and create postings for unrealised exchange rate gains or losses. The system will post the reversed transaction in the elimination period, and you can thus create a new revaluation each period end.
This routine also gives you the ability to decide whether you want to revalue gains, losses or both.
Note: In some countries you are not allowed to post transactions based on unrealised gains, but you must ensure that the losses are posted properly. This is due to the prudence concept that is fundamental in many countries.
The revaluation concerns all balance accounts with Balance revaluation set to YES in the Account file, but is only relevant for the accounts that have currency balances in another currency than transaction currency. This routine does not revalue control account balances, since the Revalue A/R and A/P open items routines are used for that purpose.
The contra entry of the gain/loss is the revaluation posting to the revalued account, which increases or decreases the system currency balance on the account. If any exchange rates are in error, you will get an error report, and no update will be performed.
Enquiries and printouts
- G/L transaction – contains the G/L postings for all revalued transactions that have updated the General Ledger. You can use the Voucher type and Voucher number parameters for selection.
- G/L transaction list – displays details for the revaluation postings.
- G/L balance account revaluation simulation list
- G/L balance account revaluation update list
- G/L balance account revaluation error list