Currency Revaluation - Unrealized Gains/Loss

  • 15 September 2021
  • 3 replies

Userlevel 5
Badge +5



Hope y’all are fine and well. 


I am trying to understand how does the IFS treats the Unrealized Currency Revaluation Gain/Loss. I know that there is a Currency Revaluation window, but how does the process works?


Thanks in advance




3 replies

Userlevel 4
Badge +8

It requires set up.  Each account i n the set up can act differently / different basis for a calculation. Most commonly we would calculate the difference in the currency rates and then post an unrealized gain / loss. 

Assuming we are revaluing AP and AR we have individual invoices that are used in the calculation process.  The difference in rate  between when the invoice was created and the rate at the time we do the reval is part of the calculation. Then we create the entries.  The entries are to be seen as temporary as we reverse the IFS entries the first day of the next month.   

The important part for AP / AR is to make sure the trade accounts (when adding to the revaluation set up connect to AP ledger or AR ledger (not General ledger). If GL is noted, then see help and fix posting control - as you must use the accounts correctly in posting control. I point this out because sooo many people make that mistake. 

The realized gain or loss would be created when the invoices are paid (difference from rate X and Y where X is the invoice rate and Y is the rate at payment. That’s the realized gain or loss. 


Best regards, 


Userlevel 7
Badge +13



Adding to Thomas’s comment, firstly you need to setup revaluation accounts as follows.


You have 2 revaluation levels, Balance and Transaction. AP and AR accounts will be revalued in traction level. Other accounts can be revalued by balance. (Please see the IFS Help for more information on each field)

Only the accounts defined here will be revalued.


  1. Then make sure all currency rates are updated for the period of revaluation.
  2. Then you can add new record in currency revaluation window for the relevant period and do the revaluation.



Shehan Almeida.

Userlevel 5
Badge +6



I would like to add something based on my experience:
•    cash accounts should have ticked checkbox Currency balance. Additionally one of code parts should be set as Curr Balance in Code Part Function column (window Define Code Part)
•    for cash accounts we use balance revaluation level
It is good idea to use different revaluation accounts for AP, AR and cash accounts. In the Revaluation Accounts window set up Posting Control in the Revaluation Posting Method Account and set up posting type GP9.
If you decide to use different revaluation accounts then will be easier to analyze postings on accounts and compare them with postings in sub-ledgers.
If you post the currency revaluation in the same accounts you have to always remember to exclude type H from the query/GL analysis.


Best regards,