Should a management decision be taken to alter a holding rate, then a holding rate revaluation can be done. This is usually undertaken at month end and the following steps are typical:
Alter the holding rates via the Currency Maintenance options.
Run a holding rate revaluation without updating the file, so that the effect of the change can be viewed.
When satisfied with the effect, re-run the revaluation selecting the option to update the files.
Run the remainder of the period end processes.
For each account
the transactions are analysed one-by-one, and any outstanding invoices or
credits are revalued to the new holding rate (unless the transaction is marked
as having a fixed exchange rate). The
transaction is updated by updating the base currency ‘allocated’ value with the
gain/loss caused by updating the exchange rate with the new holding rate and,
if not previously revalued, updating the original rate with the previous
exchange rate. A holding-rate
revaluation analysis record (type "7”) is written for each changed account with
the base currency exchange difference value.
The pre-run parameters for the
revaluation routines, whether holding or spot rate, follow the same processes.
Leaving this as ALL process all the transactions for each account in account code order by currency, giving totals per account, per currency and overall. By specifying a particular currency then only the accounts and transactions for that currency are processed.
If you reply ALL then you are asked which currency to start with.
The purposes of this question is to allow you to report on all transactions outstanding, thus giving you a ledger balance per currency, or to report only those transactions where an exchange difference will result.
Article ID: 844
Created On: Tue, Jun 26, 2012 at 10:06 AM
Last Updated On: Tue, Jun 13, 2023 at 1:00 PM
Online URL: https://kb.datafile.co.uk/article/application-differences-sales-purchase-ledger-revaluations-holding-rate-revaluation-844.html