REVALX - Revaluation of BAL transactions
What is REVALX
When running single currency operation (FRS23, IAS21) the company nominated currency(s) values are locked in.
This is correct for P&L accounts and for some Balance sheet items. However other items, specifically bank account balances and unmatched client transactions, need to have their non-FRS23 currency values re-valued to bring them inline with current exchange rates i.e. Month-end frozen. This is achieved by running the REVALX procedure BEFORE the fiscal close (MEPACT) for that period.
This procedure relies on account nominations in S01, enabled by request to HIvedome via the Zendesk portal.
Currency accounting differences are posted either (S01 nomination) to the account being revalued OR to a nominated account. The contra entry is always the ‘FX Revaluation account’.
Two revaluation journals are created, one to post the revaluation differences in the month being closed and one to reverse them in the subsequent month. A support report is automatically secured in OPRINT named yyyymm_REVAL.
Separate journals for each currency re-valued in REVALX can be produced, with the alternative being to produce a composite journal for all the currency items revalued.
A summary report is produced, listing all GL (NOM) balance sheet accounts and a single line for all CLI accounts. The summary will illustrate with a section per local currency, the effect of the REVALX after completion of ledger updates. The report also indicates which GL accounts have NOT had a REVALX applied. This element of the report is to assist Book-keeping if they wish to action their own reconciliation.
If the user is CMP authorised, the option to automatically authorise the accounting entries and match where relevant will be enabled. The matching is actioned when the CLIENT x REVALX posts the entries to the client account and/or where individual NOM entries are posted to their accounts.
If a completed REVALX process needs to be reversed, use REVALX right-click 'View existing document references' to locate the relevant previous execution.; do not use DOCENT/EJL to reverse the JLs.
Bank + Selected NOM Accounts
All unmatched, non-FRS23 currency transactions in all NOM accounts nominated as a bank or explicitly marked as REVALX required, are revalued.
The difference posts between the NOM account itself and the FX Revaluation account.
If ‘FX Revaluation Bank – Debits’ and ‘FX Revaluation Bank – Credits’ are nominated the debit and credit differences post between these accounts and the FX Revaluation account instead.
There is an option to produce the accounting segregated by Department code, useful for where a company is operating integral DEPT x balance sheet etc..
Client Accounts
All unmatched, non-FRS23 currency transactions in a .P or .S client account are revalued. There is an option to also revalue .T accounts.
If the ‘FX Clients Revaluation Account’ is nominated, the difference posts between that nominated account and the FX Revaluation account, if not nominated it posts between the client account itself and the FX Revaluation account.
If ‘FX Revaluation Client – Credits’ is nominated as well as ‘FX Clients Revaluation Account’, the debit and credit differences post between these accounts and the FX Revaluation account instead.
There is an option to produce the accounting segregated by Department code, useful for where a company is operating integral DEPT x balance sheet etc..
WIP Accounts
When an Entity is operating the WIP ledgers, all non-FRS23 currency WIP account balances are revalued, if process has been activated by S01 configuration
The difference posts between the nominated ‘FX WIP Revaluation Account’ and the FX Revaluation account.
There is an option to produce the accounting segregated by Department code, useful for where a company is operating integral DEPT x balance sheet etc..