Create Revaluation Batch Form

Sage ERP Accpac General Ledger 6.0

image\field_bt.gifCreate Revaluation Batch

This form:

  • Updates account balances in multicurrency accounts at new exchange rates.

You would revalue accounts typically at period end or when currency rates fluctuate rapidly. See Before Using.

You should use this form before printing financial statements.

  • Change the order of columns in the currency list to suit the information you are entering.

  • Split the currency list to view the fields you want to see when you review the list.

To create a batch of revaluation transactions

What revaluation does

The form revalues the functional-currency equivalents of each specified source-currency amount using the exchange rate you enter. It posts the difference between the new functional-currency value and the previous functional-currency value to the account and to the exchange gain/loss account.

Realized/Unrealized Gain/Loss Method:

  • Revaluation transactions are reversing entries. This means that if you revalue a range of three months, the first month will have an entry that's reversed in month two. The second month will have an entry that's reversed in month three, etc.

If you revalue accounts in the last period of a year, you must create the new year before you post the batch (because the reversing entry will be posted to the new year).

Recognized Gain/Loss Method:

  • Because revaluation transactions are considered permanent, no reversing entries are created when you use the Recognized Gain/Loss Method.

Entries are assigned to the next open batch, which you can view, edit, and post in the same way as other batches.

  • New revaluation accounts need to be set up for the Recognized Gain and Recognized Loss accounts in the Revaluation Codes setup form before creating a revaluation batch.

The G/L accounts that had been set up for the Unrealized/Realized Exchange Gain/Loss will not default, as the Unrealized/Realized Exchange Gain/Loss accounts are Balance Sheet account types, while the Recognized Gain/Loss accounts are Income Statement account types.

  • The From Period and To Period fields default to the sign-on date’s period when you use the Recognized Gain/Loss method. When you select to span a range of periods, a warning appears to remind you to check your selection carefully, since these transactions are being revalued permanently.

  • As an extra precaution, the system won’t allow you to access the Create Revaluation Batch form when there are unposted revaluation entries. The revaluation entry has to be posted or deleted first.

Forcing revaluation

You can revalue a currency for an account only if that currency is listed on the currency tab of the G/L Accounts form, if revaluation is set to Yes for the account, and if the account has been assigned a revaluation code.

If you force revaluation, you will revalue currencies only if they are set to NO for revaluation in the G/L Accounts form.

If you are forcing revaluation, all accounts which do not have a revaluation code assigned will use the default that you specify in the Create Revaluation Batch form.

Revaluation codes

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

  • The rate type that will be used to display the default exchange rate.

  • The source code to assign to revaluation transactions.

  • The gain/loss accounts to which exchange differences will be posted.

Once you define revaluation codes, you can assign them on an account basis to each of the currencies which can be posted to an account (using the Accounts form).

You can change the displayed rate for a revaluation run, but you cannot change the date associated with the rate displayed by the system.

See also