Revaluing a Bank Account
Revaluing a Bank Account changes the value in the Nominal Ledger, it does not change the value in the Source Currency.
The Revaluation will create either a Bank Gain or a Bank Loss.
The Revaluation Date is what the Bank Gain or Loss Ledger Entries will post to
Reconcile before Revaluing
The value that is being revalued is the Source Currency Nominal Value, not the value of the Bank Statement. Therefore, it makes a lot of sense to fully reconcile the Bank Account before Revaluing it, so that the Bank Statement and Nominal Ledger values are the same.
POSTING RULES
| Code | Name | Debit | Credit |
| BG
BL |
Bank Gain OR Bank Loss |
[Bank Account]
FX Gains & Losses |
FX Gains & Losses
[Bank Account] |
For a Revaluation FX Gain, The Debit is against Bank Account Nominal Code and the Credit is against the FX Gains & Losses Account. For a Loss the entries are reversed.
There is only a single line entry for a Bank Revaluation.
Step-by-Step Process
- From the Bank Menu, select a Bank Account, and then select Revalue.
- Edit the Revaluation Date if required; it will default to today’s date.
- Enter the Exchange Rate to 5 decimals places.
- Click Revalue.
- Check the FX Gain or Loss Calculation and the amount that will be posted.
- If you are satisfied that it is correct, click Post.
- Optionally, you can also update the Currency Exchange Rate, click Update if required.
