SECTIONS
This example shows how adjustment values are calculated for home and dual currency when performing a currency revaluation. For simplicity, the example shows values resulting from a single sales invoice.
Company
| Company Name | Home Currency | Dual Currency |
|---|---|---|
| Atkins GB | GBP | EUR |
Sales Invoice
| Invoice Currency | Invoice Date | Invoice Exchange Rate (Doc to Home) |
Dual Exchange Rate (Home to Dual) |
Invoice Line Net Value | Tax Value | Invoice Total |
|---|---|---|---|---|---|---|
| USD | 01/01/2014 | 2 | 1.2 | $100 | $17.50 | $117.50 |
Transaction Line Items
| Line Type | GLA | GLA Allows Revaluation? | Doc Value | Home Exchange Rate | Home Value | Dual Exchange Rate | Dual Value |
|---|---|---|---|---|---|---|---|
| Account | AR Control - USD (Balance Sheet) | Yes | $117.50 | 2 | £58.75 | 1.2 | €70.50 |
| Analysis | Sales - Parts (Income Statement) | Yes | $100.00 | 2 | £50.00 | 1.2 | €60.00 |
| Tax | VAT Output (Balance Sheet) | No | $17.50 | 2 | £8.75 | 1.2 | €10.50 |
CRV Wizard
Revaluation Criteria
- Unrealized Gains/Losses GLA = Exchange Gains/Losses UK
- Dimension Analysis = None
- Analysis = Summary Level
- Revaluation Type = Both
- GLA Selection = Automatically select all eligible GLAs
- Action on Duplicates = Exclude from selection
- Income Statement Periods = From 2014/001, To 2014/001, Posting Period 2014/001
- Balance Sheet Periods = From Opening Balances, To 2014/001, Posting Period 2014/001
Revalue
- Enable the checkboxes to revalue both Document to Home, and Home to Dual, for USD to GBP.
- Document Rate (USD to GBP): 4
- Dual Rate (GBP to EUR): 2
Transaction Line Items - Revalued
This table shows what the transaction line values would be if the new exchange rates were applied. The original transaction lines are not changed; any differences are accounted for in the resulting CRV documents.
| Line Type | GLA | GLA Allows Revaluation? | Doc Value | Home Exchange Rate | Home Value | Dual Exchange Rate | Dual Value |
|---|---|---|---|---|---|---|---|
| Account | AR Control - USD (Balance Sheet) | Yes | $117.50 | 4 | £29.38 | 2.0 | €58.76 |
| Analysis | Sales - Parts (Income Statement) | Yes | $100.00 | 4 | £25.00 | 2.0 | €50.00 |
| Tax | VAT Output (Balance Sheet) | No | $17.50 | 2 | £8.75 | 1.2 | €10.50 |
CRV Documents
In this example, two CRV documents are generated: one for the Income Statement revaluation, and one for the Balance Sheet revaluation.
CRV Document 1 (Income Statement)
| GLA | Home Adjustment Value | Dual Adjustment Value |
|---|---|---|
| Sales - Parts | 25 | 10 |
CRV Document 2 (Balance Sheet)
| GLA | Home Adjustment Value | Dual Adjustment Value |
|---|---|---|
| AR Control - USD | 29.37 | 11.74 |
Upon posting a CRV document, the adjustment values are debited from the GLA on the transaction line item, and credited to the Unrealized Gains/Losses GLA specified in the Revaluation Criteria.
Transaction line items that have been included in an Income Statement revaluation (the line posted to the Sales - Parts GLA in this example) are updated with the CRV reference number so that they cannot be revalued again accidentally. For more information, see Error Handling in Currency Revaluation.