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This form lets you define revaluation codes that you can assign to multicurrency accounts to specify how to revalue functional currency balances when exchange rates change. |
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Once you define revaluation codes, you can assign them on an account basis to each of the currencies which can be posted to an account (using the G/L Accounts form). |
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Before Adding Revaluation Codes |
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 Decide on a coding convention, draw up a list of codes, and decide on a description for each. |
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Choose the rate type to use for each revaluation code. |
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Choose the source code you want to assign to revalued transactions for tracking purposes. |
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Determine the exchange gain and loss accounts to which you want to post revaluation gains or losses for each revaluation code. |
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You choose the Gain/Loss Accounting Method from the Company Profile in Common Services. The choices include: |
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Realized and Unrealized Gain/Loss |
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Recognized Gain/Loss |
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If you choose the Recognized Gain/Loss Method, and then save the Company Profile, you cannot go back to the Realized/Unrealized Gain/Loss method. Also, please note that if you use the Recognized Gain/Loss Method, you need to fill in Exchange Gain/Loss Accounts in the Revaluation Code forms for setting up revaluation codes that were set up previously, since G/L will not default the Unrealized Gain/Loss G/L accounts to the Recognized Gain/Loss G/L accounts. |
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To add revaluation codes |
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1. Click the New button and type the revaluation code. You can use up to 6 characters for the code (numbers or letters). |
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You can also just type the code and press Tab: G/L will assume you are adding a new code if it doesn't already exist. |
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2. Enter a Description of up to 60 characters. |
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3. Select the Rate Type. The rate type determines which exchange rate table will be used for the revaluation. |
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4. Enter a Source Code to assign to all transactions created with this revaluation code. |
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5. Enter or select the accounts to which exchange gains/losses will be posted. (Note that the labels on these fields change depending on the translation method selected in the Company Profile -- either Unrealized Exchange Gain / Loss Account, or Recognized Gain / Loss Account.) |
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If the account chosen in one of these fields has the Post To Account field set as Prohibited, you cannot select that account as the exchange account. |
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6. Click Add. |
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How revaluation works |
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When General Ledger creates a revaluation batch, it: |
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Recalculates the functional-currency-equivalent values of source-currency account balances at new exchange rates. |
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Creates a transaction for the difference between the old functional-currency-equivalent and the new value, and posts one side to the unrealized exchange gain / loss accounts, or to the recognized exchange gain/loss accounts (and the other to the account being revalued). |
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When you create the revaluation batch, the revaluation code assigned to an account determines: |
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The source code to assign to revaluation transactions. |
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The exchange gain/loss accounts to which exchange differences will be posted. |
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You then post the batch to update account balances |
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Notes |
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You must assign a revaluation code to each currency in each account that you want to revalue. |
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Source codes specified in this form are defined using the Source Codes form. |
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Rate types specified in this form are defined using the Currency Rate Types form in Common Services. |
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Before deleting a revaluation code |
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Determine whether the revaluation code you want to delete is used with any accounts. |
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If it is, be certain to assign a different revaluation code to each of the accounts (using the Accounts form). |
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After using |
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Print the Revaluation Code report to list the information defined using this form. |
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Assign the revaluation codes to the relevant accounts and currencies. |
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For help with the fields on the Revaluation Codes form, click the Field List button at the top of this page. |
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