Fields and controls
Rate Type
Select a rate type to specify which rate table is used to get the exchange rate for the revaluation.
Recognized Gain/Loss Account
Exchange gains and losses are recognized when the foreign currency monetary items are revalued or settled using the exchange rate in effect at the revaluation date (balance sheet date).
These gains and losses will be shown on the income statement and will be included in the determination of net income for the current period, causing tax implications for the recording entity.
Revaluation Code
This is a code of up to 6 letters or numbers that identifies a method of revaluing accounts after exchange rates have changed.
For example, you may create different revaluation codes for different currencies, allowing you to post exchange gains and losses for different currencies to different accounts. Alternatively, different revaluation codes may have different source codes assigned to them.
Source Code
Specify the source code that will be assigned to all transactions generated for accounts that use this revaluation code.
Unrealized Exchange Gain Account
Specify the account to which you will post any gain resulting from the functional equivalent of a source-currency balance being revalued at a different rate of exchange than was in effect when you initially recorded transactions.
The amount is an "unrealized" gain, because it is theoretical only. For example, if you are revaluing a receivables account, you record an unrealized gain or loss when you revalue a currency, and then record a "realized" exchange gain or loss at the time you are paid, and convert that payment to your functional (home) currency.
If you have posted an unrealized gain or loss, that amount is reversed when you realize the gain or loss.
Unrealized Exchange Loss Account
Specify the account to which you will post any loss resulting from the functional equivalent of a source-currency balance being revalued at a different rate of exchange than was in effect when you initially recorded transactions.
The amount is an "unrealized" loss, because it is theoretical only. For example, if you are revaluing a receivables account, you record an unrealized gain or loss when you revalue a currency, and then record a "realized" exchange gain or loss at the time you are paid, and convert that payment to your functional (home) currency.
If you have posted an unrealized gain or loss, that amount is reversed when you realize the gain or loss.
Overview
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.
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.
After you set up revaluation codes, you can use the G/L Accounts screen to assign these codes on an account basis to each of the currencies that can be posted to an account.
For more information, see About Revaluation.