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On the revaluation screen there is an option to select Realized or Unrealized.
I understand that unrealized option will affect the unsettled documents in AR/AP.
I could not understand how the realized option will afftects the documents in AR/AP if they are already settled.
So, when the realized option is used?
I ran the print option for the realized and unrealized options. Both are giving the same report values except the report headers.
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Hello everybody
I 'm from Lima - Peru , Were Implemented Dynamics GP in a company in Lima, that report a mother company in USA .
Here in Peru's functional currency is PEN (Sol) and that the financial statements are presented in PEN and the number of special taxes and casuistry of the Peruvian taxation is in PEN, but should also generate financial statements in dollars for the mother company USA.
CFO asks conversions must be performed with the FAS52, indicating that for every transaction in functional currency has its conversion to dollars.
The remediation process should produce the same results as if the accounting records of the entity abroad had been initially held in the reporting currency (US dollars). That is, like all currency transactions in terms of the parent (dollars) posted.
Dynamics GP only converts transactions in foreign currency. Therefore we are implementing a parallel table GL2000 and GL30000 for PEN conversion of functional currency to US dollars.
Or any suggestions about a better solution?
very much helpful.thanks
Mr. Joshua,
Thanks a lot for your reply and information.
Hello Imad!
Before answering your question there are a few disclaimers to this one.
1)Multicurrency AR and AP transactions are automatically realized when you apply a payment of the same currency against them. For example if your functional currency for the company is US$ and you enter a payables transaction in Canadian dollars AND pay the document off in Canadian dollars then the document will automatically have a realized revaluation ran against it. If the document is only partially paid off with the same currency then only the paid off portion will have the automatic realized revaluation ran against it. If either the invoice or the payment is in the functional currency for the company it naturally will not be able to revalue the transaction.
2)When a MC document is paid off, if it already had a realized revaluation ran against it, the automatic revaluation will make any adjusts needed to correct any differences between the time the document was manually revalued and when it was paid off.
3)Revaluations in AP and AR (both realized and unrealized) will ONLY revalue the open portion of AP and AR documents.
4)If/when a revaluation is needed in AP or AR and how it needs to be setup in your specific circumstances is dependent on a lot of variables and it really is best to speak with your companies CPA to know exactly how you need to have this setup. In short it's not something that can easily be answered on a message board.
Now onto your questions!
A realized and an unrealized revaluation typically will show the same amount because both of them are only revaluing the outstanding amount on open MC documents.
Typically an unrealized revaluation is used to see what the actual functional value of an account is at a specific point in time but you don't actually want the accounts updated. There is also the option to have the revaluation automatically reversed as well. Most often this is used in situations where a company needs to submit a report and want it to show the most accurate functional value possible and then need it reversed out after the report is ran.
A realized revaluation is basically manually doing the automatic revaluation that occurs when a MC document is paid off in the same currency. It's important to note that when the document is paid off the automatic revaluation process will actually make any changes needed to any outstanding revaluation. For example.
on 1/1/2014 a PM doc is entered in C$ for 100.00. the functional currency is US dollars and the exchange rate is a multiply rate of 1.1. This means the functional total is 110.00
on 2/1/2014 a revaluation is ran against this vendor\currency and the exchange rate is now 1.3. That means that the function value is now 130.00 and a realized loss of 20 is booked.
on 3/1/2014 the document is paid off with a C$ payment for the full amount. At this time the exchange rate is 1.2. When the document is paid it sees that there was a previous realized revaluation and a 20 loss was booked. the function value of the document is now actually 120.00. It now books a new transaction for a gain of 10.00 (the difference between the current exchange rate and the previous exchange rate used on the manual realized revaluation).
I hope the above helped answer your questions!
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Almas Mahfooz
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