Use the G/L Revaluation Codes screen to set up revaluation codes. You assign these codes to multicurrency accounts to specify how to revalue functional currency balances when exchange rates change.
Before you start
- Decide on a coding convention, draw up a list of codes and a description for each.
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Choose the rate type to use for each revaluation code.
Note: Because you can assign only one rate type to each revaluation code, you must create a separate revaluation code for every rate type you use.
- Choose the source code to use to track revalued transactions.
- Determine the exchange gain and loss accounts to which to post revaluation gains or losses for each revaluation code.
To add revaluation codes:
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General Ledger > G/L Setup > Revaluation Codes.
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Click Create New and then enter the new revaluation code in the Revaluation Code field. You can use up to six characters (letters and numbers) for the code.
- In the Revaluation Code Description field, enter a short description of the code, using up to 60 characters.
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In the Rate Type field, select a rate type that has been defined for currencies.
The rate type determines which exchange rate table will be used for revaluations.
- In the Source Code field, specify the source code to assign to all transactions created with this revaluation code.
- Enter or select the accounts
to which to post exchange gains and losses.
Note: The labels for the exchange gain and loss fields will be either Unrealized or Recognized, depending on the Gain/Loss Accounting Method option selected in the Company Profile.
Important! You cannot specify an account to which posting is prohibited.
- Click Save.
After adding revaluation codes
- Assign the revaluation codes to the relevant accounts and currencies.