Revaluation is a process of recalculating the base currency equivalent of GL account balances from the foreign currency amounts because the current exchange rate has changed. This is useful to more accurately report on the base currency value of foreign accounts, generally for assets and liabilities but could be for any account.

Revaluation can only be performed on GL accounts that have the ‘Revalue’ flag enabled.

Before running the revaluation process be sure to set the exchange rate for each currency, not only for today but also for any month that you wish to revalue currencies as of.

To run the revaluation, open the GL accounts view and click the ‘Revalue’ button on the toolbar. The revaluation will be run for allowed accounts with that currency. The user must have the security setting Users / Currency / Revalue Currency enabled to be able to run this function.

The revaluation process can be run for Today’s date by default, or a past month can be chosen to run revaluation retroactively. If there is a rate set for that month it will be used in the calculation for revaluation. If there is no rate set then it will use the main rate.

When Revaluation processing is complete, the values in the base currency balance columns for each selected foreign GL account are recalculated from the exchange rate of each of the transactions that were posted to it. The foreign currency balances for accounts do not change. For accounts that have base currency balances changed, the difference gets posted to the GL account that was configured for gain or loss on currency.

If an error is made, the revaluation can easily be repeated, such as for an incorrect the exchange rate.

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