I have a unique requirement from client with respect to currency revaluation.
I understand the process for currency revaluation of open items at the month end - where items are revalued, gain/loss is posted to an adjustment account and then the postings are reversed on the 1st day of the next month.
Our client wants to do something different. The above process give them too much P&L fluctuations and they want to avoid doing the revaluation of open items. The client has asked whether there is any way to reverse the original postings and re-book those at the month-end rate itself, when the rate becomes available.
This way, there won't be any need to re-value as they are booked at the month end rate.
First of all, is this approach correct? If yes, how can we achieve this in practice?
Appreciate all the responses. Thank you very much.