Revalue Multicurrency

Access this form using Activities>Revalue Multicurrency.

Use this form to calculate and create revaluation entries associated with cash, accounts payable, and/or accounts receivable (if applicable) balances that have been booked in currencies other than the organization's functional currency. The revaluation process adjusts functional currency balances for foreign cash accounts to accurately reflect current exchange rates and record appropriate realized gains and losses. You can revalue as often as you want in an effort to adjust open foreign currency balances according to the most recent available exchange rate (Maintain>Multicurrency>Exchange Rates).

Note that this process only considers the balances of non-functional Cash, Accounts Payable, and Accounts Receivable sub ledger accounts (depending on which of these you select on this form) as of the revaluation date. The entry generated adjusts the Cash, Accounts Payable, and Accounts Receivable accounts offsetting the difference to a gain/loss account reported in the Reports>Financial Statements>Statement of Revenues and Expenditures.

Once this session is calculated, it has a status of Batch-to-Post. Therefore, you must post the session using Activities>Manage Sessions>Post Transactions.

Note: You must have previously created custom Rate Types using Maintain>Multicurrency>Exchange Rate Types.

 

Session ID: To create a new Session, enter a unique session ID representing the group of related documents, or press the "+" (plus) key to have the system assign a session ID. You might use the session ID "CH0725xx01," for example. The first two characters would be an abbreviation for "cash." The next six characters would represent the date. The last two would be a numeric sequence indicating that this is the first session of this type for this date. To edit an existing unposted session with a status of BP or BS, select it from the drop-down list.

We recommend using all numeric session IDs. Regardless, you should limit your entry to strictly alphabetic characters (A through Z) or numeric characters (0 through 9), and avoid the use of symbols.

Date: Enter a valid date session date.

Description: Enter a revaluation description for these entries.

Revaluation Date: Enter the date on which the revaluation will be calculated. This becomes the effective date for the revaluation transactions. Note that rates are set to expire at 12 a.m. of the date entered. If your valid date range is currently June 1 to June 30, we recommend entering July 1 as the expiration date. That way, you will be able to use the exchange rate until 11:59 p.m. on June 30.

Rate Type: Select an existing exchange rate type from the drop-down list. The system lists any custom types you created, along with two predefined rate types—DSR and MAR. This determines the exchange rate to be used for each currency in the revaluation process.

• DSR (Daily Spot Rate) - The daily value of the currency. This is used on a daily basis.
• MAR (Monthly Average Rate) - The average monthly value of the currency. This is used to revalue over a period of time.

Account Type to Revalue: Select the account type to revalue: Cash, Accounts Payable, and/or Accounts Receivable. The system creates one document per cash account. For Accounts Payable and Accounts Receivable, the system creates one document per currency.