When you run the CRV process, you choose which general ledger accounts (GLAs) to revalue and the period for which they are being revalued. For each selected GLA, FinancialForce Accounting calculates the CRV as follows:
- The values of transaction lines posted to the GLA for the specified period are summed in document currency.
- When you revalue, the new Home exchange rate is applied to the sum calculated in step 1, to get the new value in Home currency.
- When you translate, the new Dual exchange rate is applied to the sum calculated in step 1, to get the new value in Dual currency.
- The values calculated at steps 2 are subtracted from the stored Home or Dual values, and CRV documents are posted to record the revaluation loss/gain or translation adjustments.
For an example of these calculations, see Currency Revaluation and Translation Example.