Revaluation
Restate foreign-currency balances with clear sign conventions, item-level carrying values and independent approval.
Approval conditions
Controller: Approve JournalEntries, RevaluationRuns, BankReconciliations, Bills and credit memos above clerk limits, PayRuns and urgent PaymentsMade above AP Clerk limit, disputed IntercompanyTransactions, DepreciationRuns, AllocationRuns, AssetMovements, RateOverrides, ApprovalDelegations and waived CloseTasks
PendingApproval
- RR-13590 ENT-4517 3 10 d
- RR-16212 ENT-7079 30 11 d
- RR-21123 ENT-1663 5 1 d
- RR-43075 ENT-6320 33 11 d
- RR-73165 ENT-1406 6 5 d
RR-13590
- Entity
- ENT-4517
- Period
- AP-120
- RunDate
- 07 Sep
- RateType
- Closing
- RateDate
- 10 Sep
Approval waits for the controller.
Scope and readiness
ChartOfAccounts identifies monetary accounts eligible for revaluation. Typical scopes include foreign-currency bank balances, receivables, payables, loans, unapplied receipts and intercompany balances. Classification and rate policy are reviewed for the entity; the configuration does not substitute for accounting-policy review.
Each run states entity, period, scope, rate date and reversal method. Approved bank reconciliations, subledger cutoff and required intercompany agreement precede calculation. A smaller scope still needs the dependencies relevant to its accounts. Missing-rate exceptions block posting until the required rate is supplied or a supported substitute is approved and recorded.
Approval conditions
Controller: Approve JournalEntries, RevaluationRuns, BankReconciliations, Bills and credit memos above clerk limits, PayRuns and urgent PaymentsMade above AP Clerk limit, disputed IntercompanyTransactions, DepreciationRuns, AllocationRuns, AssetMovements, RateOverrides, ApprovalDelegations and waived CloseTasks
PendingApproval
- JE-21112 ENT-4622 150 4 d
- JE-58944 ENT-8633 450 14 d
- JE-49861 ENT-6361 380 9 d
- JE-89721 ENT-9342 30 13 d
- JE-88494 ENT-8666 440 2 d
JE-21112
- Entity
- ENT-4622
- Date
- 13 Sep
- Description
- Issue to WIP
- EntryType
- Standard
- Source
- Manual
Approval waits for the controller.
Account and item workings
RevaluationLines summarises an account and currency. RevaluationItems retains open-item detail where balances settle individually, including original basis, unreversed adjustments and the amount still open. Account-level bank and loan workings remain traceable to their source balances. The summary must reconcile to the supporting items or balance working.
| Calculation | Meaning |
|---|---|
| Foreign balance | Amount still open in the foreign currency |
| Booked functional balance | Current carrying value before this run |
| Closing rate | Approved rate for the run’s date and pair |
| Revalued functional balance | Foreign balance translated at closing rate |
| Carrying adjustment | Revalued balance less current carrying balance |
| Economic gain or loss | Adjustment interpreted according to debit-asset or credit-liability side |
Amounts are magnitudes with a recorded balance side. A positive carrying adjustment on a debit asset creates a gain; the same increase on a credit liability creates a loss. A positive economic gain credits FX profit and loss. Reductions reverse those directions. Offsetting assets and liabilities cannot be treated as though every increase were a gain.
UnrealisedGainLoss != 0RevaluationRun.StatusCalculatedPendingApproval
Preparation and approval
Treasury Analyst calculates the run and reviews Unrealised FX by Account against aging, bank reconciliations and intercompany evidence. Exceptions return to their source; a changed balance or rate requires recalculation. Open-item counts and allocations support the review.
Controller, different from the preparer, approves the submitted version. Posting creates its journal once and retains the exact used-rate versions and item adjustments. A posted run is corrected through the reviewed reversal or replacement path, with period restrictions still enforced.
StatusOpenSoftClose
Reverse next period
ReverseNextPeriod posts its exact linked reversal before new-period activity in the next eligible period. It restores the affected original basis before settlement proceeds. A scheduled but unposted reversal cannot be assumed to have happened; readiness stays blocked until its posting is confirmed.
The next revaluation starts from the resulting carrying balance. The original and reversing journals remain linked, so a replay or new calculation cannot duplicate either posting.
EffectiveDate = today
| From Currency | To Currency | Rate Type | Effective Date | Rate |
|---|---|---|---|---|
| CRR-4856 | CRR-4510 | Spot | 11 Sep | 390 |
| CRR-6695 | CRR-7506 | Average | 24 Sep | 90 |
| CRR-8456 | CRR-6781 | Closing | 05 Sep | 40 |
| CRR-2603 | CRR-8182 | Budget | 27 Sep | 580 |
| CRR-6577 | CRR-3567 | Spot | 22 Sep | 40 |
| CRR-1003 | CRR-4211 | Average | 07 Sep | 360 |
Carry the delta
Delta retains the restated carrying amount. A later revaluation posts only the difference from that current amount. RevaluationSettlements records how much of a carried item adjustment is released as the item settles; a partial settlement releases only its supported portion.
For receivables, the application compares the current unapplied-cash carrying value plus withholding receivable with the invoice carrying amount settled. For payables, current payable carrying is compared with payment-date cash value plus withholding payable. The bank separately removes its current carrying value and recognises disposal FX against payment-date cash value. Only these residual differences become realised FX. Releasing the allocation is tracking and derecognition, not a second profit-and-loss reversal or reclassification.
FX reporting
FX Gain and Loss Summary identifies revaluation and settlement amounts separately with their source periods. Prior recognised FX plus the residual at settlement explains the total movement. Reporting does not recalculate realised FX from the original rate while ignoring an unreversed adjustment.
Revaluation Runs Awaiting Approval and Unrealised FX by Account give Controller the review queue and workings. Auditor can follow the summary to item allocations, rate versions, settlement releases and the journal.
Modules
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General ledger
Keep transaction amounts, functional values and approval evidence together across journals, close adjustments and group reporting.
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Currencies and rates
Keep the source, purpose and approval behind every exchange rate, from document posting to group reporting.
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Revaluation
Restate foreign-currency balances with clear sign conventions, item-level carrying values and independent approval.
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Receivables
Keep customer balances, cash received and exchange differences clear across invoicing, collection and settlement.
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Payables
Review supplier bills and payment authority, then reconcile cash, withholding and exchange differences without losing the original evidence.
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Banking
Reconcile each bank account in its own currency, recognise unmatched cash and retain the evidence behind transfers and payment outcomes.
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Intercompany and consolidation
Agree cross-entity activity, preserve each company’s books and review translation and eliminations in the group reporting currency.
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Period close
Coordinate close dependencies, review supporting workings and keep reporting periods separate from later postings.
Reports
All reportsTrial Balance
All GL accounts per entity per period with opening balance, debit and credit movement and closing balance in functional currency, with a reporting-currency column at the period's translation rates; drills from summary account to account to source journal lines.
Balance Sheet
Assets, liabilities and equity rolled up per entity and consolidated, comparative to prior period and prior year, in functional or reporting currency, with the fixed-asset roll-forward as a supporting schedule.
Consolidation Worksheet
Per account, one column per entity in reporting currency from the translated balances, an eliminations column, a non-controlling interest column and the consolidated column, for a locked or calculated run; each elimination drills to the entry and the transaction it removes.
FX Gain and Loss Summary
Posted residual settlement and bank-disposal FX plus posted revaluation FX, per entity, currency and period. RevaluationReleased is a carrying-value allocation and is not added to P&L again; any optional lifetime presentation identifies previous-period recognised FX separately.
Roles and permissions
Owns the trial balance, the close and the consolidated statements. Approves what the GL Accountant, the Treasury Analyst and the clerks prepare: manual journals, revaluations, reconciliations, bills and credit memos above the clerk limit, pay runs above the clerk limit, and the period close itself.
Prepares manual journals, accruals and prepayments, bank reconciliations and the entity close tasks the Controller approves.
Owns currencies, exchange rates, bank accounts, transfers between currency accounts and the month-end revaluation. Prepares what the Controller approves.
Processes vendor bills in the vendor's currency, checks them against the order and receipt references, and builds pay runs.
Raises customer invoices and credit memos in the customer's currency, applies cash at the receipt rate and runs dunning.
Loads and maintains budget versions in entity currency, runs allocations and reads variance in reporting currency.
Owns tax codes, jurisdictions, filings and the tax accrual.
External or internal auditor. Read-only across the platform with access to the closing binder, revaluation workings and the audit trail.
Related processes
Multi-currency period close
Approve reconciliations, revalue supported balances, review the close and consolidate each entity into the group reporting currency.
6 stages · 3 approvals
Invoice to cash in a foreign currency
Invoice customers in their currency, record cash when it arrives, and reconcile each application with the amount owed and its current carrying value.
6 stages · 2 approvals
Bill to payment
Review supplier bills, approve spending within recorded authority, and track payments, currency differences and rejected-bank attempts through to reconciliation.
6 stages · 2 approvals