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Hi,
In on of my client's dbs, USD is the functional currency. There is no reporting currency.
When entering AP Invoices and AP Checks, the Canadian (C$) is used with the exchange rate for the day. When posting invoices, the originating debit and credit amounts are in C$. However, the Debit and Credit amounts always post in USD.
When applying checks to invoices, a realized gain is posted for the changes in currency rates.
My question is do we need to run the Revaluation routine for Unrealized gains? I've heard conflicting thoughts. I've read that if the functional currency is in USD, it does not need to be processed. However, I read other threads that say the Revaluation for Unrealized gains/losses needs to be run, even if there is not reporting currency.
Does anyone have any thoughts?
Thanks,
Steve
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Hi Steve
I spotted that you have gotten further details from the below forum thread. I have added it to this post so that if anyone else finds this thread they can also look at the other one.
community.dynamics.com/.../20853.aspx
Cheers
Heather
It has been a long time since I looked at it in detail, but I would think that if you wanted to revalue AP, you would do it at the sub-ledger level and post through to GL.
I would think revaluing at GL only is what would cause AP and GL to go out of balance.
There may be someone else who has more daily experience of this that can help better on it.
Hi Heather,
Thanks for your reply.
My confusion is from two areas. Wouldn't revaluing cause GL to not reconcile to AP and the checkbook since I would only be revaluing gl? Or, should I revalue payables as well?
I only have the cash and ap account setup to revalue.
My other cause for confusion is wouldn't gl already be valued correctly since we've been realizing gains/losses throughout the quarter?
Thanks!
Steve
I think it very much depends on individual company needs. You don't HAVE to run the process, but it you want Unrealized Gains in your month end reporting, then yes you do.
I have a number of clients who use MC - some revalue, some don't. Most would probably do so at their financial year end however.
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