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Former Member
Mar 23, 2010 at 03:06 AM

Closing year end for exchange rate difference.

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Hi experts,

I have an accounting questions,

my client have run a "exchange rate difference" revaluation on 31.12.09 and then reverse it on 01.01.10, the whole exchange rate difference results posted to "unrealized gain or loss on exchange rate difference" and then they do closing year end for 2009 on march

now they have been asked by authorities in my country,because they have a very big amount of exchange rate loss.

my investigation results show that the value is big because there is something not right on year end closing.

the account balance of gain or loss on exchange rate difference shows something like this:

Date                                       amount       Cumulative Balance
31.12.09   Revaluation December 09        300000        300000
31.12.09   Closing year end               -300000            0
01.01.09   Revaluation Dec09(reversal)    -300000      -300000

My question is do you need to reverse the revaluation of december 2009?

because what i know that it need be zero on every start of the month, but year end closing have put the account balance to zero, and the reversal make the balance negative.

is this the right way to do it?

so please show me how to solve this issue ?

any help will be appreciated

i have read the wiki page

https://wiki.sdn.sap.com/wiki/pages/viewpage.action?pageId=60654139

and it doesn't really help