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Documentation > MAC-PAC Technical Library > Financial > General Ledger > Programs > Revaluation Post and Report - Purpose > Revaluation Post and Report - Calculations

Revaluation Post and Report - Calculations

GL270P

A.   Housekeeping

1.   Parameter lists and key lists needed by the program are defined.  Work fields and constants are defined.

2.   The requested range testing fields are initialized.

3.   Work fields and constants are initialized.  Additional fields are defined as necessary.  Error codes are defined and initialized.  The printer control variables are initialized.

4.   Parameters passed to the program are checked to determine if the request is for a post or just a report, to determine the reporting option and to determine if a specific currency was requested.

5.   The system file access status codes (category 015) are retrieved from the Reference file (REFERP).

6.   The date fields (month, day, and year) are formatted using the system date.  Category 049 on the Reference file (REFERP) is accessed to retrieve the system date format.

7.   The unrealized exchange gain and loss account type codes are initialized.

B.   Mainline

1.   The company/location is initialized.

a.   The company and location descriptions and the base currency are retrieved from the Reference file (category 002).

b.   The current year and period are calculated based on the last period and year posted in category 106.  If this period is not the correct period to be posted, an error message is written to the report and processing continues.

c.   The program determines whether a journal may be written for the company/location in the requested period by accessing the Journal Period Security category (123) on the Reference file.

d.   The program determines whether revaluation is allowed for this period by making sure this period has already been demand posted.

e.   The unrealized exchange gain and loss accounts for the current company/location are retrieved from the Special Accounts category (131) on the Reference file (REFERP).

f.    A priming read is performed on the Multi-currency Master file.

2.   The program reads through the selected range of accounts in the specified sequence.  Deactivated accounts and accounts that are not to be revalued are ignored.  Any account that cannot be revalued, because of an application error or lack of required data, is noted as an exception and printed on the exception error report (GL270B).  Only if the revaluation selection is to post and no exception errors are detected will revaluation transactions be generated.

3.   The following example illustrates how a cash account in foreign currencies is revalued:

 

 

Foreign Amt

 

Base Amt

Cash Account

USD
JPY

1,090.00
18,152.00

 

8,467.50
739.54

If the exchange rates on the day of revaluation are as follows, the cash accounts above would be revalued in the following way:

Base currency

=

HKD

 

1 USD
1 JPY

=
=

7.80000 HKD
0.04100 HKD

 

USD Cash account
Base amount difference

1090.00 * 7.8
8502.00 - 8467.50

=
=

8502.00
34.50

             

An unrealized gain has taken place because the 1,090.00 USD are now worth more HKD.  The following accounting entries would be generated from the revaluation of this USD cash account.  The same process would follow for the JPY balance in the account.

Account
Cash Acct USD
Unrealized Gain USD

 

Foreign Amt
0.00
0.00

 

Base Amt
34.50
34.50

The revalued journal entries are booked as reversible entries and are posted for the revaluation period.  Once the period is closed, these journal entries are reversed in the following period so that the account balances appear as if they had never been revalued.

The exchange rate and operand for revaluation are obtained in the following manner.  The record account number and center number are used as keys to the Descriptive Master file (GLFILEL5) to obtain a currency rate code that represents the type of account (e.g. cash, asset, profit/loss) being revalued.  The rate code is used along with the foreign currency code, company, and location as a key to the Currency Rate Master file (CF240M) to obtain the conversion rate and operand.  These rates and operands are defined as conversion from the foreign to the base currency.

4.   Revalued amounts are saved in a Transaction Work file (GL270AL) until all records are processed without exception errors.  If there are no errors encountered in the revaluation process, the revalued amounts are written to the Valid Transaction file (GLTRANL2).

5.   To assign a journal number to a set of transactions, a book code is required.  The book code is needed because the Journal Number Assignment category (136) is keyed by company/location/book code.  The Default Book Code category (135) on the Reference file (REFERP) is accessed to obtain a default book code.  If this category record is not found, the program supplies a default book code.  If the auto reuse numbers flag on Reference File category 132 is 'Y', the next unused journal number will be retrieved from GLUIDP.  If no numbers exist on GLUIDP for this company/location/book code, then the next journal number is retrieved from the Journal Number assignment category (Reference File category 136).  If the auto reuse numbers flag on category 132 is 'N', the next number is retrieved from the Journal Number Assignment category. 

6.   Journal Header Records are written to the Journal Header file (GLJHDRL2) to summarize transactions for the revaluation and reversing periods.

7.         If the Management Account Processing Option in category 133 is set to yes, up to three journals are created for each common, fiscal, and/or management transactions. 

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