Fluctuations in exchange rates affect recorded values of open transactions in foreign currencies. Thus, the revaluation process has to take place to update the value of open transactions according to new exchange rates.
The revaluation process results in unrealized gains or losses for open transactions, as usually there is a difference between the original amounts and the revalued amounts.
At the time of transaction, Codejig ERP uses a current exchange rate to translate the foreign currency amount into the amount in a base currency of your company. At the end of a month, foreign currency amounts have to be revaluated according to new exchange rates to update the value of open transactions in the base currency.
Foreign currency revaluation can be run for both Accounts payable and Accounts receivable as well as for Foreign currency bank accounts.
Thus, depending on whether it is open payable or open receivable transactions or balances in foreign currency bank accounts that are revalued, the revaluation process impacts:
- Sales journal
- Purchase journal
- Banking journal
Regardless of the type of account balance to be revalued, an accounting entry is always posted to Transaction journal.
Foreign currency revaluation is run on a certain date that determines:
- Transactions that are open on that date and have to be revalued.
- The exchange rate for the indicated date that is to be used for the revaluation process.
To go to the Revaluation
- On the Codejig ERP Main menu, click the Accountant tab.
- Under the Accountant tab, click Revaluation.
Schedule Foreign Currency Revaluation
Manually Manage Foreign Currency Revaluation
Update Revaluation Documents
Post Revaluation Documents
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