Revaluing currency

Note: This procedure should not include revaluation for Accounts Payable or Accounts Receivable balances. These applications have separate revaluation programs. For Ledger Currency Revaluation (ML191), follow the same procedure described here. For more information, see the Multi-Book Ledger User Guide.

See Interfacing non-General Ledger application entries and closing non-General Ledger applications.

Currency revaluation is the process of recalculating exchange values for base and report currency amounts to account for variations in the exchange rates. If you selected Yes in the Currency Exchange field in Company (GL10.1), Currency form tab, then you should perform this procedure at least once in an accounting period for each General Ledger company that processes non-base currency transactions. If you have reporting currencies defined, then you should also perform this procedure on reporting currencies.

Before you revalue currency, interface journal entries from other applications to the General Ledger, post all entries using Journal Posting (GL190), and close the applications that require closing. To revalue base currency amounts, your company must be defined with the Exchange field set to Yes on the Currency form tab of Company (GL10.1).

Follow these steps to revalue currency:

  1. Access Currency Revaluation (GL191), Main page.
    Note: Account currency is not revalued.

    Use these guidelines to specify the field values:

    Rate Table

    • Select Daily to revalue non-base transaction amounts based on the exchange rate in effect and as defined in the exchange rate table on Exchange Rates (CU10.1). This option calculates the new balance for balance sheet accounts flagged for revaluation using the year to date non-base transaction amount. The new balance for income statement accounts flagged for revaluation are calculated for each period non-base transaction amount.

    • Select Period to revalue the company base amounts based on the translation table rate defined on Currency Table Translation Rates (CU20.1) and the translation code defined on Translation Code (CU05.1).

    Base Report 1 Report 2

    You can revalue any or all of these currencies concurrently.

    Update

    Select No to view entries that will be created. When you are satisfied with the results, select Yes to create journal entries.

    Fiscal Year

    Select the year you want to revalue currency in. You can choose Current, Last, or Next. If you leave this field blank, then the current year defaults.

    Period

    (From) You can revalue currency within a specific period range. Specify the beginning period in this field. If you leave both Period fields blank, then all periods for the fiscal year are included.

    (Through) You can revalue currency within a specific period range. Specify the ending period in this field. If you leave this field blank, then the beginning period defaults. If you leave both Period fields blank, then all periods for the fiscal year are included.

  2. Click the Organization page to select the organization to be affected by the program.

    Use these guidelines to specify the field values:

    Company / Accounting Unit / Company Group / Accounting Unit List

    You must select only one of these organizational structures to be revalued:

    • A company

    • A company group

    • An accounting unit list

      If you select a company, then you can also select an accounting unit to limit the revaluation to the company and accounting unit.

  3. Click the Accounts page to select the range of accounts to be revalued in the company, company group, or accounting units that you select.

    Use these guidelines to specify the field values:

    Major Accounts / Account group / Chart /

    You must select only one of these options:

    • A range of accounts

    • An account group

    • A chart of accounts

    Summary Account

    If you select a chart of accounts, then you can also select a summary account to revalue all the detail accounts under the summary account. You can also further limit the detail accounts to either a range of subaccounts or a subaccount group.

    Subaccounts / Subaccount Group

    If you select a chart of accounts, then you can further limit the detail accounts to either a range of subaccounts or a subaccount group.

  4. (Optional) You can choose the Currency page to limit the revaluation to one of more currency codes.

    Use these guidelines to specify the field values:

    Code

    • If you leave these fields blank, then all transaction currencies that are used by the company, accounting unit, company group, or accounting unit list you select will be revalued.

    • If you select one or more currency codes, then only these currencies will be revalued.

  5. Post revaluation journal entries using Journal Posting (GL190).

Other revaluation considerations

  • The General Ledger revaluation journal entry will not be flagged to auto reverse. If the entry needs to be reversed in the following period, then it must be done manually using Journal Entry (GL40.1).

  • GL191 revalues transaction amounts for all posting accounts that are defined for revaluation, based on the currency exchange or translation rate in effect, and creates journal entries for the currency gain and loss accounts assigned to the company to track unrealized gains and losses.

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