Currency Revaluation

Revaluation should be run after all demand posts and quick posts (that is, account balance updates) and before the final post of a period.  Revaluation is flexible to allow for the revaluation of some or all accounts.  Only those accounts with a revaluation flag on the Account/Center Master File set to Y (yes) will be processed.  In addition, a rate may be set up on the Account/Master File that corresponds to a specific exchange rate on the Currency Master File. 

If the post option is selected, account balances will be updated to reflect exchange rate changes.  In addition, translations to the unrealized exchange gain and/or loss accounts will be generated.  These two accounts are set up on Reference File category 131.  Note that these transactions will be reversed after the first demand post of the next period.

A report option is also available so that only specific foreign currency codes can be revalued for reporting purposes.  Sorting criteria and additional selection criteria are available for reporting purposes.

The following example illustrates how revaluation processing works.

           Account/Center                    Revalue Flag

      Accounts Receivable                             Y
      Sales                                                    N

Invoice entry in Canadian dollars.
Base currency = U.S. dollars (USD)
Foreign currency = Canadian dollars (CAN)
Exchange rate = 2.0

                                                          Foreign                              Base
              Account                            Currency Amt                Currency Amt

      Accounts Receivable                        100                                  50
      Sales                                               100-                                 50-

Revaluation exchange rate = 2.5

                                              Foreign                   Base                 Reval.
                                          Currency Amt         Currency Amt       Amount      Difference

      Accounts Receivable            100                         50                    40                10-

The system will generate the following transactions for the revaluation:

                                                          Foreign                    Base
              Account                            Currency Amt         Currency Amt

      Accounts Receivable                          0                      10-
      Unrealized Exchange Loss                  0                                 10

These transactions will be reversed in the demand post for the next period.