Revalue GL in Foreign Curr

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This topic require you to have fairly good accounting knowledge. You may want to seek your accountant or our support team for assistance.
You may have balance sheet item that is in foreign currency, example bank, investment accounts etc, and you need to revalue them as at the month end reporting rate.


To report the accounts in the Balance Sheet, the foreign currency (example USD bank account)  must be translated to the base currency base on the exchange rate in the month that you are reporting your financial statement.

So if you are reporting your Balance Sheet in December, you must report the balance of USD1,000.00  as SGD1,300.00( x'rate @ 1.3000) or SGD1,320.00 (x'rate @ 1.320).
The difference will go to unrealised gain and loss accounts in the Profit and Loss Statement.



It has the effect of reducing the  SGD1,320.00 to SGD1,300.00 so that the bank balance will not be overstated (if the rate falls from 1.3200 to 1.3000)

Likewise, it has the effect of increasing the bank balances  from SGD1,300.00 to SGD1,320 so that the bank balances will not be understated (if the rate increase from 1.3000 to 1.320)


: Revalue customer,supplier and general ledger in foreign currency


Assuming the month end rate of USD as at Dec 2020 is 1.3400. Check you currency rate table
At [Setup], click [Currency Rate]



Follow the steps from [1] to [6]






At [Setup] , click [Chart of Accounts], only accounts in foreign currency that is flagged with a tick will be revalued.




FAQ : When will a foreign currency account need not be revalued? When it is capital in nature, example share capital or Fixed asset account


When your base currency is in USD and your fixed asset are purchased locally in SGD, you need not revalue the fixed asset on a monthly basis but fixed at the rate when the fixed asset were acquired.







To revalue GL foreign currency account


Exercise: Assuming you want to revalue your General Ledger's foreign currencies balances as at April 2020.


Step 2: Click [A/C Entry] --> [Revalue Accounts] --> [Add] ,





Follow the steps from [1] to [5]        





Bank balance in SGD was revalued based on USD balance @1.34000 to SGD in 31/12/2020 and 1.3200 in 31/12/2021





FAQ : What if I never revalue my bank ?

Answer : Your bank balances will be overstated by $120.00 when it should be $26,934.00 instead of $27,054.00
              This exchange gain/loss becomes material if your foreign currency balances is beyond six figure sum.


FAQ Can I revalue only at the end of the year? Yes but best practice to revalue monthly




Related Topics

Chart of Accounts , tick the revalue Balance Sheet item, not to revalue capital accounts.


Preset Unrealised Gain/Loss in Exchange in Company Profile - Account Settings


Exchange Gain / Loss account in Chart of Accounts


FAQ Can I revalue only at the end of the year? Yes


Month end Procedures



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