At what point in the month end process should I run the FX revaluation?
If consolidation is used and “Manage Currencies at Group Level” is enabled in the consolidation manager, follow this order:
- Reconcile between banks and creditors in the subsidiary, ensuring that payments and receipts are allocated to the invoices. See Manual Bank Reconciliation or Automated Bank Reconciliation.
- In the consolidation manager, update the relevant currency rates to the Balance Sheet Month which will automatically update them in the subsidiaries. See Using Multi-Entity Consolidation.
- Run a revaluation journal in the subsidiary. See Using Foreign Exchange Revaluation Journals.
- Run consolidation in the Consolidation Group Entity. Using Multi-Entity Consolidation.
Which entities should I run revaluation in?
Revaluation Journals should be run in all entities that have either foreign currency bank accounts and/or foreign currency customers/suppliers. If you are running revaluation in multiple subsidiaries, this can be done in any order.
Revaluation does not need to be run in the consolation entity or if an entity does not have foreign currency bank accounts and/or foreign currency customers/suppliers.
Should I run the bank, and creditors and debtor open items simultaneously or individually?
Bank, Creditor and Debtor revaluation can be run all at the same time but can also be processed individually.
Where does the FX exchange rate come from in the revaluation journal?
FX rates will either come from:
- Consolidation Entity: When the consolidation entity has the “Manage Currencies at Group Level” box ticked, the exchange rates are set in the consolidation manager and automatically update in the subsidiaries.
- Revaluation Journal: If consolidation is not used or the “Manage Currencies at Group Level” box is not ticked, then the rate must be entered manually when entering the revaluation journal.
Does the revaluation journal reverse automatically in the following period?
Yes. In the following period, the revaluation journal will be automatically reversed.
How can I review my revaluation journal after it is run?
FX Revaluation Export
In the revaluation journal screen, the excel download breaks down the revaluation journal by individual customers/suppliers and bank accounts. This should be downloaded prior to saving the journal. The transaction browser and journal reports will only show one value for all customers/suppliers and bank accounts.
Transaction Browser
Go to the transaction browser and type in “reval” into external reference. See Using the Transaction Browser for more details.
Report Manager
Consult the following reports. See Reports Glossary for detailed explanations.
- Consolidated Entity:
- General Journals List
- General Ledger Daybook by transaction or period date
- Subsidiary Entity:
- General Journals List
- General Ledger Daybook by transaction or period date
- FX Analysis Summary Report
- Realised FX Gain/Loss Report
- Unrealised FX Gain/Loss Report
How can I reverse a revaluation journal?
If a month-end rate was applied incorrectly, you can reverse the latest revaluation journal by going through the same steps used to create the journal, selecting the same period end date. The system will warn you that it will reverse and replace the previous revaluation. See Using Foreign Exchange Revaluation Journals.