Run Account Balance Revaluation – A summary of the activity
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This activity facilitates in reinstatement of balance of account codes in foreign currency other than customer and the supplier balances. Foreign currency account is an account code which has account currency other than the Base currency of the company, The reinstatement of balances is with respect to base currency and the corresponding effect is reflected in parallel base currency balance also. This may result in increase or decrease in the balances. This activity facilitates in reinstatement of balances of account codes satisfying the following conditions:
Account currency is not the base currency of the company.
Account group of the account code is Asset or Liability.
The account codes should not be of Control account type except for Bank / Cash / PTT control account and Auto posting account type.
Purpose of revaluation
Revaluation is always done on the last date of an open financial period. Revaluation must be done for every foreign currency. A revaluation entry – a journal voucher is passed in the respective finance books. The exchange gain or loss arising there from is accounted in the exchange rate revaluation gain/loss account. This account is retrieved from the “Account Rule definition” business component. This revaluation entry is of reversal type, a reversal entry will be passed automatically on the succeeding financial period start date.
The system updates the status of the revaluation voucher to “Authorized” on reinstatement of the Account balances. The system generates a unique number for the voucher and the reversal voucher. The system updates the login ID of the user to the created by and the system date to the created date. The system automatically reverses the voucher passed during the revaluation period, in the immediate open financial period to arrive at the exact picture of exchange gain loss.
Getting familiar with the pages inside
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Run Account Balance Revaluation |
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Accounting Information |
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Attach Notes |
What you can do in this activity
Select foreign currencies for revaluation
Revalue using Simulation Run #
Select foreign currencies for revaluation
Any foreign currency account code that is an account code having account currency other than base currency of the company can be selected for revaluation.
Go to “Run Account Balance Revaluation” page.
Select the currency for which the revaluation has to be made with respect to the base currency.
The exchange rate gain or loss arising on account of revaluation is recorded in “revaluation Gain or Loss account”. This is retrieved from “Account Rule Definition” business component.
Automatic Reversal of revaluation entry:
Go to “Run Account Balance Revaluation” page.
Specify a unique reversal voucher number or the numbering type for the system to generate.
Run the Account balance revaluation.
The system automatically reverses the voucher generated during the revaluation period, in the immediate open financial period. The system also generates a unique reversal voucher number based on the numbering type if specified otherwise can be a unique number manually entered.
This is required to ensure that gain or loss arising on account of Translation is reflected only on the financial period or year-end balances, and not carried over to the future open financial periods or years.
Revalue using Simulation Run #
The Simulation run no, which has been simulated and viewed can be used for revaluation.
Go to “Run Account Balance Revaluation” page.
Specify the simulation run number and retrieve the account details.
Run the revaluation process.
The account details whose balances are not revalued can be viewed in this activity.
Go to “Accounting Information” page.
View the accounting information by specifying the transaction type.