Revaluation is changes in the value of a country's currency relative to other currencies.  Transactions can be made in different currencies. A company can make purchases in foreign currency, whereas their Functional Currency is the home currency. 

Pre-condition:

  1. Setup the default accounts and checked the revalue settings.   System Manager > Company Configuration > Multi-Currency.
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  2. Assign the current exchange rates of the foreign currency to functional currency.
    Go to Common info > Currency Exchange Rate.
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  3. Close the period to be revalue. Go to Fiscal Year > Open the Fiscal Year of the period to revalue > Close the period of the module.

                           

      Take Note:

  • Purchasing and Sales module should have a status of revalued first before closing the General Ledger. Hence, it will prompt a message:

                        "AP and AR Modules needs to be revalued first before setting GL status to closed."

  • No unposted transactions.  Hence, Batch posting screen will display.


Here are the steps on how to Revalue Currency:

  1. Create a transactions from General Journal (Foreign to Foreign Currency).  Click save and post.
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  2. From General Ledger menu > Activities >  Click Revalue Currency.
  3. Click new button to open Revalue Multi-Currency screen.
  4. Fill in the Fiscal Period and the Transaction Type dropdown.
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    2. It will automatically load the transactions details
      1. Verify the Current Forex Rate
      2. Filter the General Journal Account ID
      3. Verify the transaction data

       5. Modify the current forex rate today. Data will be calculated.

                             

Computations:

  • Transaction Amount * Forex Rate = Historic Amount
  • Transaction Amount * New Forex Rate = New Amount
  • New Amount - Historic Amount = Realized Gain / Loss

6. Click Save and Post Preview Tab.

  • Verify the data.
  • Filter the GJ record no. 

                     

7. Click Post button. Status will be Posted

                 

Unposting Revalue Currency

  1. Open the Revalue Currency screen
  2. Filter the Record No. and Click Open Selected button
  3. Click Unpost Preview tab
  4. Click Unpost button. Status will changed to Ready


                




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