The need to revalue nominal accounts normally comes about only due to a change in the holding rate.Even in this event it may only be certain balance sheet accounts which need to be revalued. Note that the debtor and creditor control accounts would be automatically revalued as a result of revaluing the sales and purchase ledgers and thus would not need a separate revaluation.
This procedure allows accounts to be selected one-by-one for revaluation, ether at the current holding rate or spot rate. Any exchange difference is posted to the exchange difference account for that currency and this difference could be posted as a provisional journal if required.
Period No / Date
Enter the period number and date as of which you wish to revalue.
Account Code
Select the account code you wish to revalue, <F4-Select> is available. Of course, you can only revalue non-base currency accounts.
Balance in Currency
Balance in Home
New Holding Rate
New Spot Rate
The system then displays the balance of the account in both the currency of the account and the base value together with the holding and spot rates it will revalue this account at.
Revalue at Current / Spot Rate
Effect of Exchange Difference Value
This asks whether you want to revalue at the current holding rate (enter ‘C’) or the spot rate (enter ‘S’).At this point the system determines whether any exchange difference is calculated – if not then you are warned accordingly and asked if you wish to revalue another account. If a difference is calculated then the system displays the result.
Write Off Exchange Difference to Account
This asks for the account to post the exchange difference to, it defaults to the exchange difference account set for the currency but you can amend as required. <F4-Select> is available.
Post as Provisional Journal
Set accordingly.
After confirming these details you will be prompted to update the nominal files, respond as required and then confirm whether you wish to revalue another nominal account.
Article ID: 1035
Created On: Wed, Jun 27, 2012 at 2:34 PM
Last Updated On: Mon, Jun 19, 2023 at 7:16 PM
Online URL: https://kb.datafile.co.uk/article/revalue-a-nominal-account-nominal-1035.html