Currency Options

This menu, applicable for systems where the Foreign Currency application is in use, allows utilities to revalue outstanding invoices and credits via both Holding Rate revaluations (which effect the sales/purchase ledger) or Spot Rate revaluations (which effect the debtor/creditor totals in the nominal ledger).

Should management decide to alter holding rates, then you can undertake a revaluation of the ledger.You normally time this for the end of an accounting period, but it can be done at any stage. A holding rate change is a permanent change, affecting the outstanding base currency value of the ledger.

If you require a temporary change, usually to prepare and produce statutory accounts at a particular exchange rate, then you could run a revaluation at specified spot rates. As this is only for reporting purposes it is not a permanent revaluation. The spot rate revaluation creates an analysis record giving the effect of the valuation for update to the nominal ledger, but this is ignored by the sales and purchase ledgers. Your nominal reports can then be ran including this change, before being reversed (in the nominal) as required.

These menu options allow for revaluation reports to be printed without updating the ledger, or alternatively to update the ledger after the report. The former allows you to see what the ledger would look like if a revaluation were done, whereas the latter updates the account records and writes the revaluation transaction to the ledger.