Revaluing Second Base Reporting Currency using Base Currency as the Source
This type of revaluation generates a balancing adjustment which typically adjusts for any small currency conversion rounding errors.
The following table indicates the values that are included on the revaluation posting, depending on which currency is the pivot:
| Pivot is: | Value 1 | Value 2 | Value 3 | Value 4 |
| Base Currency | X | |||
| Second Base Currency | X |
Base Currency is Pivot
If the base currency is the pivot, this is the split risk currency model. The exchange risk is split between the local company and the parent company.
Second Base Currency is Pivot
This is not truly revaluation, but can be used as a mechanism for handling rounding differences for a reporting currency. The total of the reporting currency is compared to the total value in base currency at the standard, fixed exchange rate, and adjustments are posted for any differences which are assumed to be rounding errors. This needs to be run for each period if you want each period to balance, or at year-end if you require an exact equivalence at year end.