Consolidating Revaluation Transactions

Ledger Revaluation (LER) can generate a revaluation adjustment posting for every transaction it revalues, if the revaluation generates a difference between the original and revised target currency amount.

At the most detailed level the revaluation transaction posts this difference to the account referenced on the transaction and contains all of the original transaction details, for example the analysis codes, asset code, asset indicator and so on.

If you are revaluing a large number of transactions, this may generate an equally large number of additional account postings. To restrict the number of revaluation transactions generated, you can consolidate the transactions chosen for revaluation, and produce consolidated gain/loss or balancing adjustment postings.

You can consolidate the revaluation transactions by:

Period (for balance sheet, creditor, debtor and client account types), for example, to produce a consolidated gain or loss posting for all transactions regardless of their posting period. That is, the consolidated revaluation posting is not split by period.
Analysis Dimension, for example, to produce a single gain or loss posting summarizing all the transactions regardless of their analysis codes in that dimension. That is, the consolidated revaluation posting is not split by analysis code for the specified dimension(s).
Asset, for example, to produce a single gain or loss posting for all assets. That is, the consolidated revaluation posting is not split by asset code.

In addition, you can consolidate the revaluation transactions for accounts, by account type. This produces a single revaluation posting for each account type, for each currency.

Use Ledger Revaluation Profiles (LEP) to define the consolidation rules for the revaluation.

Consolidating by Analysis Dimension

If you consolidate by analysis dimension 1, then different analysis dimension 1 codes are ignored by Ledger Revaluation (LER) in the revalued transactions. It still consolidates the transactions by account and by currency within account, and posts separate transactions for any other individual analysis dimension codes.

Note: Ledger Revaluation never consolidates currencies, even when accounts are consolidated.

Consolidating on a One-to-One Basis Applying Revaluation Link References

The One-to-One Consolidate option allows the revaluation difference postings to be calculated and posted at the most detailed transaction level. It also allows each revaluation difference posting to be associated with its source 'revalued' transaction.

When the revaluation difference posting is generated, a unique Ledger Revaluation Link reference is assigned to the original source transaction and the new revaluation difference posting.

When you select this Consolidate option on subsequent revaluations, Ledger Revaluation (LER) uses the Revaluation Link Reference to group the source and revaluation postings together and revalues them as a whole rather than as individual transaction.

The new revaluation posting contains the same information as the source posting, apart from the Journal Type, Journal source, Journal number, Journal Line number, Transaction Date, Due Date and the Debit/Credit marker.

Note: It is strongly recommended that you always use the same Consolidate option (either One to One, Yes, or No) when running revaluations on a ledger. This is because One-to-One consolidation creates and relies on a revaluation link reference, and the other Consolidate options (Yes and No) do not create any such link reference. Consequently, switching between options for successive revaluations could cause incorrect revaluation postings.