Run Supplier Balance Revaluation – A summary of the activity
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This activity facilitates you in reinstatement of foreign currency balance of the Supplier. The currency revaluation would be with respect to the base currency. The foreign currency balance must be reinstated at the end of financial year or financial period. This is required to ensure that the Supplier balances reflect the true figures as on the date of the financial period or financial year statements (Balance sheet / Profit & Loss statement). Each time a revaluation is run, a separate revaluation journal voucher is generated. This voucher is of Reversal type that is the voucher is automatically reversed on the first date of the succeeding financial period. This is required to ensure, the balances reflect. The effect of revaluation done with respect to base currency is also reflected in Parallel base currency balance, if applicable.
So at any point in time the selected account balance would be revalued in the Base currency as well as in the Parallel Base Currency. The exchange gain/loss will be posted into the respective finance books. The exchange gain or loss is posted to Exchange rate revaluation gain/loss account. This account is retrieved from Account rule definition business component for usage ids as currency revaluation gain or currency revaluation loss. This activity also allows you to view the accounting information. This activity facilitates entering the additional comments.
The system updates the status of the voucher to “Authorized” on revaluation of the Supplier 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 succeeding open financial period. This is required as the exchange gain or loss recorded is only on account of Translation. This being a notional amount is reversed in the subsequent financial period to arrive at the true balances.
Getting familiar with the pages inside
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Run Supplier Balance Revaluation |
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Accounting Information |
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Attach Notes |
What you can do in this activity
Select foreign currency account codes for revaluation
Automatic Reversal of revaluation entry
Select foreign currency account codes 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 Supplier 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 fetched from “Account Rule Definition” business component.
Automatic Reversal of revaluation entry
Go to “Run Supplier Balance Revaluation” page.
Specify a unique reversal voucher number or the numbering type for the system to generate.
Run the Supplier 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 specified otherwise it 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 balance, and not carried over to the future open financial periods or years account balances as well.
The revaluation entry passed to account for the reinstatement of balances and reversal entry to nullify the effect in the subsequent open financial period can be viewed in this activity.
Go to Accounting Information page
View Accounting information by specifying the transaction type and transaction no.
Any comments while revaluating the supplier balances can be specified.
Go to “Attach Notes” page.
Enter any comments and save them.