Using Revaluation with the Currency Models

Ledger Revaluation generates revaluation postings that update different transaction values, depending on the source and target currencies you choose, and on your pivot currency.

Therefore, depending on which currency is your pivot currency, you may need to run Ledger Revaluation more than once to calculate all of the required revaluation values.

The following sections summarize the revaluation runs you may need to perform for each currency model:

Revaluation Using the Split Risk Currency Model (Pivot is Base Currency)

In the split risk currency model the base currency is set as the pivot currency and the exchange risk is split between the local company and the parent company.

Two revaluation runs are required to support using this model:

  1. Revalue transaction currency against base to revalue the base currency values.
  2. Revalue base currency against second base/reporting currency.

Revaluation Using the GAAP Model (Pivot is Transaction Currency)

Using the typical GAAP currency model the transaction currency is the pivot and the exchange risk is taken by the parent company. In this situation, two revaluation runs are typically required:

  1. Revalue transaction currency against base currency to update the base currency values and calculate the gain or loss in the base currency.
  2. Revalue transaction currency against second base/reporting currency to update the second base currency values and calculate the gain or loss in this currency.