Currency revaluation
A USD balance still open at month-end may have a different base-currency value at the closing rate. Revaluation records that difference without claiming that another USD payment occurred.
Before you begin
- Reconcile the foreign-currency balances and confirm the as-of date.
- Have an approved exchange rate and the correct exchange gain/loss account.
- Check that the posting date is open. The absence of eligible balances is a valid empty state.
Prepare the revaluation
- Open Accounting > Period close > Currency revaluation.
- Review the account, party, currency, balance and current rate. Select the preparation action for an eligible balance.
- In Prepare currency revaluation, select the balance, gain/loss account, new exchange rate and as-of date. Review the rounding allowance.
- Save a draft for review or Create and post when authorized.
Verify the effect
Inspect the revaluation journal and base-currency reports. The adjustment should explain the change in carrying value and the corresponding exchange gain or loss; it is not a change to the original foreign-currency invoice amount.
If a rate is rejected or a period is closed, resolve the cause and review the draft. Do not compensate by changing the original source transaction.