Multi-currency - How to revalue at period end (unrealised gains/losses)

MYOB Product Manager clinteidelman
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Multi-currency - How to revalue at period end (unrealised gains/losses)

AR/AP revaluation at period end

At the moment the easiest way to calculate unrealised gains/losses is to use the AP/AR Recon Summary reports. You can filter by each currency, as at a period end date, to get the total value in reporting currency and originating currency. (depending on your number of currencies, you may find it easier to export the report to Excel and aggregate currencies using a pivot table)

 

The report displays reporting currency based on historical rates actually used in transactions, which makes it easy to use as the basis for your calculation ie. (reporting currency at historical rate) - (reporting currency at period end rate). 

 

Posting this revaluation general journal against the control accounts will create an out of balance with the subsidiary ledger. One way of avoiding this is to post the journal to a revaluation sub-account.

 

I'm assuming you'd want to reverse the journal on the first day of the next period, which you'd need to post manually. 

 

Foreign Bank revaluation at period end

Run the balance sheet report as at period end date to get the balance in reporting currency using historical rates. 

Run the Bank Recon report as at period end to get the balance in originating currency.

 

All general journals are posted in reporting currency, and therefore, unlike AR/AP, the revaluation doesn't impact the bank recon as it's calculated in originating currency (you'll see it as voided foreign transaction in the recon).

 

Other

Tip #1: In AR 2019.3 we've added Copy to Clipboard in Find Transactions, just like the Purchase/Sales registers. This will make it easier to paste and then analyse the contents of any account/transaction (including FX values) in Excel should you want to.

 

Tip #2: The Amount Due column in the Sales/Purchase Registers displays values in reporting currency based on the default/live exchange rate in the Currency List. This provides a quick way to understand your FX exposure as at today, especially if you group by currency (by right clicking the Currency column)

 

I'm hoping we can build an automated revaluation function in the near future to make it super easy to revalue each currency. If this is important to you, please add your comments and vote up this idea.

 

How do you handle FX revaluations? Do you have a better way? Please share your thoughts in the comments below.

4 REPLIES 4
Ultimate Partner Mike_James
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Re: Multi-currency - How to revalue at period end (unrealised gains/losses)

Hi @clinteidelman , there are 2 reported issues with the AR/AP recon reports where the local currency amount of a transaction that has been subsequently paid is reported at the rate of the payment not the transaction rate. And the  originating currency amount is reported as nil. 

 

I tested this in Clearwater and agree that there are issues. 

 

Would that affect calculation of the unrealized variances?


Regards, Mike (mike@datawise.co.nz)
DataWise Limited (www.datawise.co.nz), developers of:
DataWise Report Writer - Custom Reporting from MYOB programs
(Including AccountRight Classic/Live, and exo Payroll)

MYOB Product Manager clinteidelman
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MYOB Product Manager
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Re: Multi-currency - How to revalue at period end (unrealised gains/losses)

Yes, it would @Mike_James, thanks for calling that out.

 

These issues have been fixed in 2019.3, which we'll be rolling out throughout September.

Experienced User Lalapot
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Re: Multi-currency - How to revalue at period end (unrealised gains/losses)

Is this issue already fixed? As i noticed that whenever im runing a reconciliation report of previous year, some invoice that were subsesequently paid are not showing.

 

Thanks.

MYOB Product Manager clinteidelman
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MYOB Product Manager
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Re: Multi-currency - How to revalue at period end (unrealised gains/losses)

Hi @Lalapot 

 

Yes, the issue with the reconciliation reports was fixed in 2019.3.

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