11.09. Invoice Gain/Loss Revaluation
This functionality is required by the law and it currently indicates the execution of this operation at the end of each month.
The functionality is covered by the Invoice Not Realised Gain/Loss Revaluation report, found in the Open Items menu.
This report lists the not wholly paid/received invoices at the end of the indicated period and their operational, accounting and revaluation balances.
the reversed invoices (original) are taken into account if the reversal process is don in the periods following the revaluation interval. This is the case when the reversal occurred before the revaluation for the past month/period;
the invoices that have been reversed in the same period as the revaluation one are not taken into account (same behaviour occurs with voided invoices).
If you also indicate an accounting document, then, by compiling the report, the accounting document through which you register the resulting currency exchange difference will also appear. The generated accounting document is drafted, one for each invoice that entered the revaluation calculation. This document can be manually completed and posted. It is mandatory you go through this step, as this will prompt the following registrations:
accounting transaction that posts the currency exchange differences;
a detailed record specific to each revaluation of the affected invoices; the system will take this into account when calculating the currency exchange differences for the next transactions which implicate these invoices.
The document is posted using the difference accounts entered in the Unrealized Gain Acct and Unrealized Loss Acct in the General section of the Defaults tab in the Accounting Schema window.
With only this information, the system will function correctly in the future as far as the currency exchange differences from future payments/receipts and revaluations are concerned!
Attention!
In specific situations when the revaluation process is carried out for a past period and transactions (mainly allocations) have already been registered after said period, it is mandatory you repost all the allocations (payment/receipt) to recalculate the exchange rate differences as compared to the new value indicated by the revaluation process.
Example:
- current date: 10 of August: until this date, the revaluation for 31st of July has yet to be done.
- between 1 and 10 of August: payments and receipts have been operated for open invoices and the corresponding allocations have also been established.
- between 1 and 10 of August: some invoices that were open in July have been reversed; the allocation between invoices has also automatically been achieved (also in August).
- 10 of August: the accounting runs the revaluation process for July (31st of July) and posts the obtained accounting document.
- Right now, it is mandatory to repost all the allocations from the period 1-10 August, because the currency exchange difference will be calculated as compared to the data obtained from the revaluation (that does not initially exist).
- There are two ways to repost:
-a. manually - recommended only when there are few foreign currency transactions which can be manually controlled.
-b. automatically - via the Reset Accounting with Filters process for the Allocation Document Type and the Account Date interval: 1-10 August (as per the previous example) with the Delete Existing Accounting Entries checkbox selected. The system will then automatically repost them and will also completely redo the currency exchange differences calculations.