REVALUATION IN REPORTING CURRENCY LEDGER OF ACCOUNT BALANCES DENOMINATED IN REPORTING CURRENCY

 

Revaluation in Reporting Currency Ledger of Account Balances Denominated in Reporting Currency

Revalue account balances in the reporting currency ledger when the entered currency is the same as the reporting ledger currency. If you want a journal-level or subledger-level reporting currency to produce the same balances that you would get after running the Translate General Ledger Account Balances process for a balance-level reporting currency, run the Revalue Balances process in the reporting currency ledger.

In certain cases, you might want your primary or secondary ledger balances translated to a reporting currency not at the account balance level, but with journal level details. When the revaluation basis in a journal-level or subledger-level reporting currency is set to Primary ledger currency, the revaluation adjustment calculated for the reporting currency ledger is based on the account balance in the primary or secondary source ledger's ledger currency. The difference in an account balance due to the fluctuation in the conversion rate between the source ledger's ledger currency and the reporting currency's ledger currency is booked as an adjustment in the reporting currency ledger.

In general, when the Revalue Balances process is submitted for all currencies by leaving the Currency field blank in the revaluation rule, the process skips the ledger currency of the reporting currency, and completes revaluation for all other foreign currency balances for the selected accounts.

With the revaluation basis in a journal-level or subledger-level reporting currency set to Primary ledger currency, you can submit revaluation for the ledger currency of the reporting currency by setting the Currency field to the ledger currency of the reporting currency in the revaluation rule definition. The process revalues balance sheet accounts at the month-end rate and income statement accounts at the average rate, or a revaluation rate of your specification, even if the entered currency for an account is the same as the reporting ledger currency. This enables journal-level or subledger-level reporting currencies to produce reporting currency balances that would be the same as that of a balance-level reporting currency when the Translate General Ledger Account Balances process is run.

Business benefits include:

Flexibility of maintaining reporting currencies at the detailed transactional level with the ability to make adjustments using the revaluation process to reconcile these to a balance level reporting currency.

Steps to Enable

To submit revaluation in the ledger currency of the reporting currency, you must complete the following setup steps :

Step 1 : Set the Revaluation Basis to Primary ledger currency in the reporting currency configuration.

Step 2 : Set the Currency field explicitly to the ledger currency of the reporting currency in the revaluation rule definition.

Step 3 : Submit the Revalue Balances process using the revaluation rule definition created in step 2.

Tips And Considerations

This method of using revaluation to adjust the balances of a journal or subledger level reporting currency does differ from using the translation method of generating translated balances or using a balance level reporting currency.  Please note your organization's Chief Accounting Officer must consent to this currency treatment before performing revaluation in your journal or subledger reporting currency in this manner for this purpose.

Key Resources

• Refer to the Revaluation topic of the Accounting Period Close chapter in the Using General Ledger guide on the Oracle Help Center.