Revaluation Codes Form

Sage ERP Accpac General Ledger 6.0

$image\field_bt.gif$ Revaluation Codes

This form lets you define revaluation codes that you can assign to multicurrency accounts to specify how to revalue functional currency balances when exchange rates change.

Once you define revaluation codes, you can assign them on an account basis to each of the currencies that can be posted to an account (using the G/L Accounts form). See Before using.

The Gain/Loss Accounting Method selected for your company (in the Company Profile form in Common Services) determines how exchange gains and losses are calculated. The choices are:

Realized and Unrealized Gain/Loss
Recognized Gain/Loss

If you choose the Recognized Gain/Loss Method, and then save the Company Profile, you cannot revert to the Realized/Unrealized Gain/Loss method. Also, you must specify Exchange Gain and Exchange Loss accounts for each revaluation code. (The program does not use the Unrealized Gain/Loss accounts specified under the Realized and Unrealized Gain/Loss method as default Exchange Gain and Exchange Loss accounts.)

To add revaluation codes

Click the New button and type the revaluation code. You can use up to 6 characters for the code (numbers or letters).

You can also just type the code and press Tab: G/L will assume you are adding a new code if it doesn't already exist.

Enter a Description of up to 60 characters.
Select the Rate Type. The rate type determines which exchange rate table will be used for the revaluation.
Enter a Source Code to assign to all transactions created with this revaluation code.
Enter or select the accounts to which exchange gains/losses will be posted. (Note that the labels on these fields change depending on the translation method selected in the Company Profile -- either Unrealized Exchange Gain / Loss Account, or Recognized Gain / Loss Account.)

If the account chosen in one of these fields has the Post To Account field set as Prohibited, you cannot select that account as the exchange account.

Click Add.

How revaluation works

When General Ledger creates a revaluation batch, it:

Recalculates the functional-currency-equivalent values of source-currency account balances at new exchange rates.
Creates a transaction for the difference between the old functional-currency-equivalent and the new value, and posts one side to the unrealized exchange gain / loss accounts, or to the recognized exchange gain/loss accounts (and the other to the account being revalued).

When you create the revaluation batch, the revaluation code assigned to an account determines:

The source code to assign to revaluation transactions.
The exchange gain/loss accounts to which exchange differences will be posted.
You then post the batch to update account balances.

Notes

You must assign a revaluation code to each currency in each account that you want to revalue.
Source codes specified in this form are defined using the Source Codes form.
Rate types specified in this form are defined using the Currency Rate Types form in Common Services.

Before deleting a revaluation code

Determine whether the revaluation code you want to delete is used with any accounts.

If it is, be certain to assign a different revaluation code to each of the accounts (using the Accounts form).

After using

Print the Revaluation Code report to list the information defined using this form.
Assign the revaluation codes to the relevant accounts and currencies.

For help with the fields on the Revaluation Codes form, click the Field List button at the top of this page.

Click here for hints on using forms.