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Currecy revaluation

  • 22 December 2023
  • 6 replies
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  • Thej
  • Sidekick (Partner)
  • 33 replies

Hi All,

When we are performing currency revaluation process, two vouchers will be created. For example, when we run the currency revaluation on 31/10/2023 , reversal voucher will be created on 31/10/31 and new voucher will be created to 1/11/2023. This is for the month end transactions. How it will be like when we run the currency revaluation at year end. Does the system has new voucher for new financial year? What will be the impact of currency revaluation for the new financial year.

 

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Best answer by gumabs 22 December 2023, 15:17

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Hello @Thej ,

The system behavior is the same when you are running currency revaluation for last period of the year. If you select Do Not Reverse field for the General Ledger accounts then those accounts will not be reversed in reversal voucher. Other than that all the Account Receivable and Account Payable accounts will be reversed with next voucher which will go to 1st day of next financial year.

 

 

Hope this helps

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@gumabs We are going to invalidate existing bank accounts in current financial period and new accounts will be created to effective from first date of the next financial year. Financial year end is 31/1/2024 and we are performing currency revaluation on 31/1/2024. As a result, there should be a voucher created in 1st February 2024. However, 1st February 2024, there won’t be any old accounts in the system . In this case, what is the best way which we can handle the currency revaluation.

 

Best regards,

Theja

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Hello @Thej 

If you inactivate existing bank accounts then best practice could be using Do Not Reverse check box. In this case the reversal voucher with date 1st of February 2024 will not have bank accounts.

Hope this helps

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@gumabs That will be good. But, if we do not reverse the voucher in next financial year, the bank balance consist of exchange gain or loss. Is it correct? on the other hand we can keep the accounts open another one month. What would be  the best approach out of these two?

G
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Hi @Thej 

Yes that is correct, your balance at the end of financial year will be including gain/loss. When you change the GL account from one to another, you must transfer balance what is available on GL balance analysis. If you keep the account open or not, in any case you can always have Do Not Reverse selected for bank GL accounts. To me, this is the best approach I used so far.

Hope this helps

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@gumabs Appreciate your help very much...

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