Hi David, Multicurrency revaluation is something one does at the month/period/year end for financial statements. For example you have multicurrency transactions and you have to reflect the true value at the end of month in functional(base or local) currency. One revalues the accounts i.e. balance sheet accounts at the month end exchange rate and profit & loss accounts at the average exchange rate for the month or period (depends on what duration one runs the revaluation.
For example: Your base currency is Pound Sterling in GB. 1st March: You purchase 100 USD from a foreign supplier (div exch rate 1.5 = 66.66 Pounds) (assuming invoice is not settled and it is in account payables) 3rd March: You purchase 100 USD from a foreign supplier (div exch rate 1.6 = 62.50 Pounds) (assuming invoice is not settled and it is in account payables) 31st March: Month End (exch rate 1.4) at the end of March your foreign currency balance in account payables i.e.liability would be 200 US Dollars.However the Pound Sterling value would be 66.66+62.50 = 129.16. Since it is balance sheet item and one have to revalue at the month end rate, the revaluation process will adjust Pound value from 129.16 to (200/1.4=) 142.85. So the account payables in the balance sheet would be 142.85. The difference of 142.85 and 129.16 would be posted to gains/losses account accordingly. Some material on revaluation on page 47 of http://mbs.microsoft.com/downloads/public/GP10Docs/MulticurrencyManagement.pdf However currency translation is slightly different and only used for reporting in presentation currency. For example your parent company is in Japan. Than you will simply translate the value based on exchange rate (Balance sheet @ cut off date, Profit & Loss @ average rate for the period) Hope this helps Regards, Dhariwal -------------------- m2f -------------------- -- http://www.openobject.com/forum/viewtopic.php?p=36537#36537 -------------------- m2f -------------------- _______________________________________________ Tinyerp-users mailing list http://tiny.be/mailman/listinfo/tinyerp-users
