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We will discuss the Cash Book, Creditor and Debtor Account Revaluations in this document.

Revaluations are carried out in the general ledger module and are not reflected in the sub-ledgers

(payables and receivables). They are represented in general ledger (GL) as journals of journal

source Revaluation.

Revaluation entries are based on the foreign currency entries/balances of a particular account. e.g.

Dollar, Euro, Pound

As revaluations are an on going exercise and needs to be carried out every month, you would

reverse the previous month revaluation entry in the current month before generating the current

month revaluation entry.

Revaluation entries could be system generated or manually calculated and entered as Journals.

1. Cash Book Account Revaluation

Cash Book Account Revaluations would be based on the foreign currency entries in the particular

account in General Ledger. The logic followed in a revaluation is detailed below.

The steps to carry out a system revaluation is detailed below. The closing rate could be arrived at,

a) using the Daily Rates (rate as at the last date of a month) or

b) using the Period Rates (period end rates form) or

c) using One Time Rates (rate manually entered when running the revaluation)

2. Creditor Account Revaluation

Creditor Account entries are transferred to the General Ledger from the Payables module. As the

source for the creditor account entries are the Payables module, the Payables module provides a

report called Open Items Revaluation Report to reconcile the Revaluation Journal entry

created/entered in General Ledger.

The revaluation entry could be system generated following the steps detailed above, or manually

calculated and entered. Manually calculated entry will not follow the steps detailed in point 1.

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As a system revaluation is based on the entries appearing in the General Ledger, for an accurate

system reconciliation for creditor accounts, the below conditions should be met

a) The Payables module creditor account balance should reconcile with the generalledger creditor account balance (use Accounts Payable Trial Balance)

b) The Payables module foreign currency entries need to be in sync with the General

Ledger Creditor Account foreign currency entries.

If the foreign currency (e.g. dollar) entries originating from Payables are reversed in

General Ledger or foreign currency entries directly entered from General Ledger, the

system revaluation run in General Ledger will not tally with the Open Items

Revaluation Report as in dollar or foreign currency terms the Payables module andGeneral Ledger Creditor account is showing a variance.

In these situations the revaluation entry need to be based on the Open Items

Revaluation report, and not on the Journals in General Ledger

i.e. a system revaluation or manual revaluation based on the Journal information in

General Ledger is inaccurate. Revaluation should be based on the Open Items

Revaluation report

3. Debtor Account Revaluation

Debtor Account entries are transferred to the General Ledger from the receivables module. As the

source for the debtor account entries are the Receivables module, the Receivables module provides

a report called Open Items Revaluation Report to reconcile the Revaluation Journal created/enteredin General Ledger.

The revaluation entry could be system generated following the steps detailed above, or manually

calculated and entered.

As a system revaluation is based on the entries appearing in the General Ledger, for an accurate

system reconciliation for debtor accounts, the below conditions should be met

a) The Receivables module debtor account balance should reconcile with the general

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ledger debtor account balance (use Aging 7 Buckets by Account Report)

b) The Receivables module foreign currency entries need to be in sync with the General

Ledger Debtor Account foreign currency entries.

If the foreign currency (e.g. dollar) entries originating from receivables are

reversed in General Ledger or foreign currency entries directly entered from General

Ledger, the system revaluation run in General Ledger will not tally with the Open

Items Revaluation Report as in dollar or foreign currency terms the receivables

module and General Ledger Debtor account is showing a variance.

In these situations the revaluation entry need to be based on the Open Items

Revaluation report, and not on the Journals in General Ledger.

i.e. a system revaluation or manual revaluation based on the Journal information in

General Ledger is inaccurate. Revaluation should be based on the Open Items

Revaluation report