Foreign Exchange Revaluation Accounts

Overview

At month end (or at any time), you have the option to use JobBag's 'restate general ledger' process to revalue the assets and liabilities which were processed in foreign currencies. This process requires then following revaluation accounts to be set up.

Balance sheet revaluation accounts have to be set up for each of the following balance sheet accounts: 

• Trade Debtors

• Trade Creditors

• Foreign currency bank accounts

• GST accounts

• Payroll clearing

• Divisional Loan Account

P&L revaluation accounts have to be set up and mapped as control accounts

• Foreign currency unrealised gain / loss (P&L)

• Foreign currency realised gain / loss (P&L)

P&L Foreign Exchange Accounts

The aim is to set up two P&LM accounts as below:

Create F/C Unrealised Gain Loss P&L account, use type "posting".

Create F/C Realised Gain Loss P&L account, use type "posting".

Map above accounts as control accounts by clicking on settings icon.

Link the P&L accounts and click on SAVE. 

Balance Sheet Revaluation Accounts

Trade Debtors Revaluation GL Accounts

Create and map a general ledger account for 'unrealised foreign exchange gain or loss on Trade Debtors'. Follow the process below:

Create Trade Debtors Nett

Create 'Unrealised Forex on Trade Debtors'

Edit the existing Trade Debtors account and map the F/C Unrealised gain/loss account

Final outcome is as below

Trade Creditors Revaluation Accounts

Create and map a general ledger account for 'unrealised foreign exchange gain or loss on Trade Creditors'. Follow the process below:

Create Trade Creditors Nett

Create 'Unrealised Forex on Trade Creditors'

Edit the existing Trade Creditors account and map the F/C Unrealised gain/loss account

Final outcome is as below

Bank Accounts Revaluation Accounts

Create cash revaluation accounts if you have foreign currency bank accounts.

Create a nett account for the bank 

Create Unrealised FX account for bank

Edit bank account and link the FX Unrealised account

The final outcome

GST Liability Revaluation GL Accounts

Create and map a general ledger account for 'unrealised foreign exchange gain or loss on GST Liability Accounts'. Follow the process below:

Create GST Liability Nett

Create 'Unrealised Forex on GST Liability GL Accounts'

Final outcome is as below

Payroll Clearing Revaluation Accounts

Create and map a general ledger account for 'Payroll Clearing unrealised foreign exchange gain or loss'. Follow the process below:

Note: These revaluation accounts have to be created even if you are not using the payroll system.

Create 'Payroll Clearing Net'

Create 'Payroll Clearing Unrealised Gain/Loss' account

Edit the Payroll Clearing account and map the F/C Unrealised gain/loss account

Final outcome is as below

Divisional Loan Account Revaluation GL Accounts

Create Divisional Loan Account Nett

Create Divisional Loan Account Unrealised Gain/Loss

Edit Divisional Loan account and map the F/C Unrealised gain/loss account

Final outcome is as below

Need more help?

Please contact support call 02 8115 8090 or email support@jobbag.com