Each foreign currency record offers the option to Revalue Debtors or Creditors Since the calculation includes outstanding transactions for the current period and before revaluation is usually run directly before a period end.
The process calculates a new home value based on either the current rate or one entered at the time and this can either be printed for reference or posted as a journal to the default Exchange Difference and Control nominal accounts for the currency being revalued. It is also possible revalue all currencies using the drop-down option and in this instance the current exchange rate is used.
Where a journal is produced, it can be set with the standard reversing options as for recurring journals. It is important to bear in mind that journals posted to a control account may lead to differences between aged Debtors/Creditors and control account values as these have no effect on the Sales or Purchase ledger and so the reversal option may be advisable.
Note: This function does not adjust the original values on transactions, nor does it adjust customer or supplier balances.