Foreign Currency Revaluation

[Former Member]

Hi,

Foreign currency valuation :

1. Invoice is posted with usd -invoice genreated with 190000000

2. Revaluating the invoice thru revaluation of foreign currency with exchange rate updated - document is generated with 1000000

i would like to know what are all the entries which get affected in the revaluation transaction

1.Realised exchange

2.payables/receivable exchange

my question is

whether reconcillation account gets afftcted with this transaction if means how

Points will be awarded for the sooner reply

Regards

Rupa

[Former Member · Accepted solution]

Hi,

Mainly it depends on how u customized in OBA1 with the realised and Unrealised Gain /Loss accounts gets DR/CR depending on the exchange rate. And at the same time the adjustment accounts get reversed and gets DR/CR of ur realised/Unrealised Loss/Gain accounts.

The recociliation accounts will not be effected with the execution of foreign currency transaction. It remains the same.

Hope this clarifies.

Regards

Balaji

[Former Member]

Thanks for all the useful comments

[Former Member]

Hi,

The normal entries during the revaluation is based on your configuration settings and debits and credits are controlled depending on whether the exchange rate being used for the reval is creatiing a loss or gain. So the entries would be Dr/Cr Gain or loss on Reval and Dr/Cr balance sheet adjustment.

The actual Reconciliation account of the vendor or debtor should not be affected.

You can however for each AP or AR recon account define which accounts are posted to for valuations and Translations - Tcode OBA1

Hope this helps

Siva