Revaluation is the process of computing the Unrealized Gains and Losses associated with an outstanding asset or liability in the General Ledger.
In ERPro, Revaluation is a feature found in the General Ledger module, and is used to compute the period-end Revaluation Gains and Losses for all foreign-currency denominated assets and liabilities based on balances maintained in the ERPro General Ledger.
Overview of Revaluation
It is fairly common to maintain foreign-currency denominated assets and liabilities on one’s balance sheet, for example, cash in foreign bank accounts, notes receivable in a currency other than your Base Currency, and other goods such as land or buildings located in a foreign land. As the exchange rate fluctuates between your Base Currency and the Foreign Currency in which these assets and liabilities are denominated, the actual value of these assets and liabilities changes in your Base Currency books.
In ERPro, Revaluation automatically adjusts the Base Currency value of these foreign-currency denominated assets and liabilities to reflect their actual value in the Base Currency given the most current exchange rate. Typically, Revaluation is performed at the end of each accounting period.
The following summarizes the ERPro Revaluation Feature:
• Automatically computes the Revaluation Gains and Losses associated with foreign-currency denominated balance sheet accounts maintained in the General Ledger.
• Automatically books an entry into the General Ledger that adjusts the foreign-currency denominated balance sheet account with the offset booked to a Revaluation Gain or Loss account.
• Allows separate General Ledger bookings to Revaluation Gain and Loss accounts.
Revaluation is under General Ledger -> Processes -> Revaluation GLFRA
- All Balance Sheet Items with foreign denominated currency defined are listed
- Check the Account(s) that you wish to perform revaluation
- Select the Voucher Type for the Revaluation Voucher
- Select the Voucher Date for the Revaluation Voucher
- Select the Revaluation Gain/Loss Account
- Click the Generate Voucher button to generate the Revaluation Voucher
Revaluation Voucher is an Auto Reverse Voucher that a Reverse Voucher will be automatically created at 1st in next period.
Revaluation Voucher is an unposted Voucher that require posting.
Available in ERPro 6.2.12 or above.