Currency revaluation in GL module is showing huge amount for 1 account.

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Posted on by Sonali Rout

Dear Experts,

We have recently run the revaluation from January 01 to December 31, 2019 in GL module. Once this is completed; we have identified huge amount as recorded in revaluation voucher for 1 main account which is, as per the client, should not be that much amount.

The main account 1103002 is linked with sub-ledger bank account AUB (Abu Dhabi Islamic Bank).

Question is; how to find out which amount is revalued that much after the revaluation is completed ?

Below is the screens shot taken from the posted revaluation voucher for account 1103002.

Thanks and regards,

Sonali

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Ludwig Reinhard Microsoft Employee on at

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Hello Sonali,

It is not a good practice to run a foreign currency revaluation in GL for a bank account because running this revaluation in GL will result in a GL - bank module variance.

What you can do is running the foreign currency revaluation directly in the bank module.

For details, please see: docs.microsoft.com/.../bank-revaluation

Best regards,

Ludwig

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SouravDam 11,730 on at

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Hi Sonali Rout,

As Ludwig mentioned; you can use currency revaluation for bank in the Cash and bank management module itself, without processing it in GL.

However; you did not mention clearly if you are actually following this or not. Looking at your query; it looks like, you are doing currency revaluation for subledger 'Bank' at main accounts level only. Also; you did not mention rate from which date in 2019 you are using for revaluation. I hope you are using rate as on 31st Dec considering the revaluation period Jan to Dec as you mentioned.

If this is only in main account level; then check as per the following.

--- Open Ledger settlements form in GL periodic tasks. Check if you have settled any lines here. If not, then system will revalue all these as available 'Open transactions' from Jan01 to Dec31 (date ranges as you highlighted).

For example; in below screen print; you can see nothing is settled yet in Ledger settlements form.

--- Now identify the account for which you have got huge revaluation amount recorded in ERP. That account must have multiple records posted on different dates which is not yet settled. Therefore; system will revalue all those lines one by one.

--- Chose any main account + dimension combination as you mentioned and filter it in Ledger Settlements form.

--- Now revalue each line of this combination with 31st Dec rate and check what is the difference in value you are getting between the amount in local currency (as showing in Ledger settlements form) and amount in local currency after revaluation made.

--- At the end; do a Total of all these difference amount. Hopefully you will be able to validate the reason for the huge amount recorded during GL revaluation.

You may have to spend some time for this activity to reach the conclusion because revaluation is a very straight-forward approach and it will only consider open transactions to revalue on a given date ranges based on certain rate

Kindly check and update.

Best regards,
Sourav Dam

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SouravDam 11,730 on at

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Hello Sonali Rout,

Is this case sorted out or still any challenges left?

Also, can you check if you had posted any transactions directly in main account 1103002 which may not create impact in related subledger bank account AUB (Abu Dhabi Islamic Bank).

Best regards,
Sourav Dam

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saurabh bharti 15,039 Moderator on at

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Hi Sonali,

Try the suggestion given by other folks.

Apart from that if you need to identify the amount impacted because of this then in voucher transactions filter of posting type "Unrealized gain and loss" because for revaluation it considers this profile.

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Sonali Rout 70 on at

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Dear Sourav,

Practically this is happened like this. Users posted many transactions manually in that account. And yes, it was not recorded in the bank account due to this reason.

When I discussed with them; they informed us that they removed the tick mark from do not allow manual check box in the main account and after that they posted entries in that.

But thank you for highlighting this and appreciate for your time and effort.

Thanks and regards,

Sonali

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