Multi Currency / Result / Report
Re-Valuing Bank Amount
Note that the Local Amounts shown for your Foreign Bank Balance, Balance Sheet, and other reports are calculated based on your document transactions exchange rates. Hence, it should NOT be taken as the current valuation. As exchange fluctuates over time, you may have to do a revaluation based on current exchange rate.
Type
Report> Bank Balance
Action
> Click REPORT activity
> Click FINANCIAL
> Click BANK BALANCE module
> ACCOUNT select Bank USD
> DATE FROM select 1 Jan 12
> DATE TILL select 30 Jun 12
> BALANCE ACC check for SGD2,288.84
Notice the SGD value is 11,592 which is based on 1.288Assuming the current rate is now 1.2 and you would like to do a re- valuation.
> Take note the rate is SGD2,288.84 divide by USD1,777.05= Exchange rate is 1.288
Type
Setup> Currency
Action
> Click SETUP activity
> Click ACCOUNTS
> Click CURRENCY module
Details Add:
> DATE FROM select 01 Apr 12
> DATE TO select 30 Jun 12
> EXCHANGE RATE enter 1.2 You have to update the exchange table with new rate.
You have to update the exchange table with new rate.
Type
Adjustment> Journal Entry
Action
> Click ADJUSTMENT activity
> Click ADJUSTMENT
> Click JOURNAL ENTRY module
> DATE select 30 Jun 12
> SUBJECT enter Bank Revaluation
Select date as per the day you would like to revalue.
Details Line 1:
> ACCOUNT select Bank USD
> CREDIT enter 9000
> EXCHANGE RATE enter 1.288
Line 1, you have to temporarily credit out the total foreign amount.For exchange rate, enter the rate you have calculated earlier.
Details Line 2:
> ACCOUNT select Bank USD
> DEBIT enter 9000
> EXCHANGE RATE enter 1.2
Line 2, the total amount is debit back. But a different exchange rate is entered.
> TOTAL check for -792.00
Notice that entry may look balance in foreign currency; it is not in local currency. There is a difference of SGD792.
Details Line 3:
> ACCOUNT select Bank Revaluation
> expense account
> DEBIT enter 792
> CURRENCY select SGD
TOTAL check for 0
This will post the difference to the expense account, and hence balance this journal entry.
Unrealised Exchange Gain or Loss
Type
Adjustment> Closings
Action
> Click ADJUSTMENT activity
> Click CLOSINGS
> Click UNREALISED EXCHANGE module
> Click NEW
> DATE select cut-off MONTH Dec & YEAR 2012
> UNREASLISED EXCHANGE A/C select
> EXP1200
Note. Depending on your management preference, for Unrealised Exchange A/C to post to, you can select between a Cost, Expense or Capital Account.
> Details
For Code, you may add as many
> CODE select Bank USD
> EXCHANGE RATE enters the exchange rate as of the date of cut-off date.
> CLICK ADD
accounts as you would like to valuate.E.g. Trade Debtors, Trade Creditors, Bank accounts, etc.
Applying Unrealised Exchange Gain or Loss on Profit & Loss Statement
Type
Report> Profit/Loss
Action
> Click REPORT activity
> Click FINANCIAL
> Click Profit/Loss module
> DATE FROM select 1 Jan 12
> DATE TO select 31 Dec 12
> UNREASLISED EXCHANGE click Tick
> Click REFRESH
Depending on the period selected, the system will automatically apply the appropriate Unrealised Exchange scenarios you have created earlier.
> Click PRINT UNREALISED REPORT
This will list out the accounts that have been re-valuated and how the unrealised amount is derived.
> Close module
Note. During the process of generating the Unrealised Exchange scenarios, if you have selected a Capital/Owner Equity Account instead, you will need to go to Balance Sheet to view the Unrealised Exchange value.
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