Accounts Payable > Invoice Processing > AP Exchange Rate Revaluation

AP Exchange Rate Revaluation

You use this program to calculate and optionally update the local equivalent balances of foreign currency suppliers. This is required when fluctuating currency exchange rates cause inaccurate outstanding invoice values.

This program enables you to restate the value of outstanding foreign currency supplier invoices (where a fixed exchange rate was not applied) at a revised exchange rate and update GL accordingly with the currency variance. You would typically do this to meet statutory requirements that require you to restate your debt at a realistic rate of exchange at reporting dates (i.e. when you prepare your Balance Sheet).

Toolbar options

Field Description
Start Processing Generates the revaluation process according to the selections you made.
Save Form Values This option is only enabled in Design mode (see Automation Design). Your selections are saved and applied when the program is run in automated mode.

AP Revaluation Options

Field Description
Options  
Report Options
Option Description
Report Only Performs the revaluation calculation and produce the report without generating the entries to update the General Ledger. This enables you to check the results of the calculations before actually performing the update.

You can run the report in Report only mode as often as required.
Report and update Performs the revaluation calculation and to generate the entries to update the General Ledger.
Use invoice branch Filters the invoices by invoice branch (i.e. the AP branch defined against the invoice).

When this option is not enabled, the invoices are filtered according to the AP Branch defined against the supplier.

[Note]

This also determines the General Ledger account to which the GL journal is posted as the ledger code is defined against the branch.
Branch selection Indicate the supplier branch(es) you want to include in the calculation.
Currency selection Indicate the currency(ies) for which you want to process the calculation.
After processing completed These options are displayed within programs that can be automated. They enable you to indicate the action you want to perform once processing is complete (see Automation Design).

AP Revaluation Report

The results of the processing function you selected are displayed in this pane once processing is complete (unless you enabled the option to close the application from the After processing completed section). You use this section to print or email this information.

Notes and warnings

Restrictions and limits

  • Before running the report, you need to enter the buying exchange rate for each foreign currency you want to revalue (Currencies).

  • Ensure that you have completed all payment cycles for the currency(ies) you want to revalue (Payment Cycle Maintenance).

Revaluation considerations

  • The balances in the GRN suspense file/tables that relate to foreign payables are not revalued by the revaluation program.

  • Currencies defined with a fixed exchange rate are excluded (in accordance with IAS 39 which applies to hedge accounting for foreign currency items).

    If you set the currency to fixed, it is assumed that you have applied a hedge against the currency (e.g. you have taken foreign exchange cover). Transactions with a fixed exchange rate are therefore not revalued for the purposes of financial reporting, but are reported at the rate of the hedge.

  • The currency variance is calculated as: (Currency rate of invoice when captured - Current currency rate) x Invoice balance

  • A new journal is created for each 999 lines revalued.

Integration considerations

  • If you defined interface ledger accounts for revaluations using the AP Currency Variance GL Interface program, then variances are posted to that exchange variance account. Otherwise, variances are posted to the exchange variance account defined against the supplier's bank.

Exchange variance calculation

  • Exchange Variance = [Round to 2 decimals(new rate * invoice balance amount)] - [Round to 2 decimals (original invoice rate * invoice balance amount)]

Inserting Application Help

You would typically follow this procedure to display help for the current program in a customized pane that can be pinned to the program window.

Information includes step-by-step instructions for the various functions available within the program, including a brief overview of what the program does, what setup options are required and how to personalize the program.

  1. Open the program for which you want to insert application help into a customized pane.

    This functionality is only available for a program that has panes.

  2. Right-click any form field.

    You can also click the triangle menu icon that appears in the title area of a pane.

  3. Select Insert Application Help from the context-sensitive menu.

    The application help appears in a pane within your program. You can reposition the pane using the docking stickers or pin it to the program window.

Removing the Application Help pane

If you no longer want to display application help in a pane for your current program, you can simply remove it.

  1. Select the Close icon in the right-hand corner of the application help pane.

  2. Confirm that you want to delete the pane.