General Ledger > Transaction Processing > GL Alternate Currency Valuation

GL Alternate Currency Valuation

You use this program to revalue any of the alternate currency ledgers based on the revaluation categories assigned to the General Ledger codes.

When you revalue an account more than once in a month, the difference between the first valuation and the second valuation is calculated and a journal is generated for this difference.

Toolbar and menu

Field Description
Start Processing

Select this to revalue the selected alternate currency ledger according to the options you selected.

The detail movements for the selected ledger period and the brought forward balance (where applicable), are revalued according to the revaluation category type attached to each ledger code.

The difference between the newly calculated values and the current alternate currency values on each ledger account is raised as a journal entry on the account. The other side of this journal is posted to the Gain/Loss account defined against the revaluation category for the currency (GL Revaluation Categories). The journal date is the date entered at the Date to use for revaluation field.

[Note]

If a Gain/Loss account is not defined against the revaluation category (GL Revaluation Categories), then the Forced Balance ledger account is used for the other side of the journal entry.
Currency

Indicate the currency you want to revalue.

The currencies available are those currencies you defined using the GL Alternative Currency Maintenance program.

GL Alternate Currency Revaluation

Field Description
Report Options  
Currency This displays the currency you entered in the Currency field.
Date to apply revaluation

This defaults to the current systems date, but can be changed.

This date is used as the date for the journals for the gain/loss transactions created by the revaluation program.

[Note]

This date also determines how the average rate is calculated and which month end rate is selected for the revaluation.

Refer to the examples below.
GL year This indicates the current year of the General Ledger module and cannot be changed.
GL period This defaults to the current period of the General Ledger module, but can be changed to any period within the current financial year.
Options  
Run Balance function

Select this to run the Balance function of the GL Period End program after the revaluation.

To resolve any rounding errors that may occur when revaluing an alternate currency ledger, it is recommended that this option is selected.

This option is selected by default.
Post journal

Select this to post the journal that is created for rounding errors into the General Ledger immediately after the report from the GL Alternate Currency Valuation program is processed.

Rounding errors detected are posted to the Rounding ledger code defined against the alternate currency (GL Alternative Currency Maintenance).

If you do not select this option, then you need to use the GL Journal Entry program to post the journal created by the GL Alternate Currency Valuation program.
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).

Exchange Rates

The following information is included in this pane:

  • Average exchange rate to apply

    This indicates the average exchange rate that the revaluation will be based on, but can be changed.

    If you enter an exchange rate at this field, then that rate is used. i.e. The calculated average rate is not used.

    This rate is applied to those ledger codes with a revaluation category type defined as Average - movement only and Average - balance and movement.

    The average exchange rate is calculated by accumulating the applicable rates and dividing this sum by the total number of rates accumulated.

    Example:

    Assume that the following exchange rate history exists for the currency:

    Table 1. Rate changes during January

    Date Rate
    January 2 1.50
    January 5 2.75
    January 17 5.75
    January 31 4.00

    If the Date to apply revaluation is January 31, then the average rate is calculated as: (1.50 + 2.75 + 5.75 + 4.00) / 4 = 3.50

    If the Date to apply revaluation is January 15, then the average is calculated as: (1.50 + 2.75) / 2 = 2.125

    [Note]

    The rates for January 17 and January 31 are not included in the calculation as these are after the Date to apply to revaluation.

    Exchange rate history can be viewed and maintained using the Currency History program.

  • Month end closing exchange rate

    This displays the month end rate that is applied to those ledger codes with a revaluation category type defined as Monthend - movement only and Monthend - balance and movement.

    This date cannot be changed.

    [Note]

    The Month end rate is not necessarily the rate on the last day of the month.

    The rate used is dependent on the date entered in the Date to apply revaluation field.

    Example:

    Assume that the following exchange rate history exists for the currency:

    Table 2. Rate changes during January

    Date Rate
    January 2 1.50
    January 5 2.75
    January 17 5.75
    January 31 4.00

    If the Date to apply revaluation is January 31, then the month end rate is 4.00

    If the Date to apply revaluation is January 15, then the month end rate used is 2.75

    [Note]

    The rates for January 17 and January 31 are ignored as these dates are after the Date to apply to revaluation.

    Exchange rate history can be viewed and maintained using the Currency History program.

GL Alternate Currency 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.

The New value is only displayed this first time the program is run in a particular month. If the program is rerun in the same month, the New value is displayed as zeroes, because the transaction has already been revalued, so only the variance changes and not the New value.

Notes and warnings

Prerequisites

Before you can successfully revalue alternate currency ledgers, you will need to have:

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.