How to setup the GL for revaluation of non bank accounts

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How do you setup GL accounts that will have multicurrency transactions posted into there and you wish to revalue them at month end. These accounts are not bank accounts.

Thanks

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AJAnsari 5,754 on at

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Hi Harry,

Every company in NAV has a default operating/reporting currency (defined in the General Ledger Setup as the LCY Code, aka the Local Currency Code), and optionally, an Additional Reporting Currency (also defined in the same Setup table as the ACY Code).

When you book a transaction to a G/L Account from a Journal Entry or a Sale / Purchase / Payment / Cash Receipt screen, you specify what currency you are recording the transaction in. The subledger records the transaction in that currency, as well as the LCY code (based on the prevailing exchange rate that applies to the date used on the transaction). The General Ledger Entry created records it in the LCY. Reporting can be done on the LCY or ACY.

If you subsequently need to adjust the exchange rate, you would first create a record in the Currency's Exchange Rate list for the desired date (from the Currencies list), and then you would run the Adjust Exchange Rate function, and this would revalue the previously posted entries that are affected by the rate change.

I hope this helps. If my response has answered your question, please verify by clicking Yes next to "Did this answer your question?"

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RobertasR 5,004 on at

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Hi Harry, what is the nature of these transactions that you need to revalue?

Usually these sort of Foreign Currency transaction (for example, intercompany loans in foreign currency) are managed as banks (even though they are not actually banks) - one bank for one currency code. All of them can be posted to the same GL using the same Bank Acc. Posting Group. The benefit is that system will retain the FCY value and calculate new LCY value every time you run Currency Rate Adjustment job, applying new rates. In GL it will affect the Bank GL Account (the one Bank Acc. Posting Group is pointing to), balancing with Realized FX Gains/Losses GL Account.

Robertas

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Jens Glathe 6,092 on at

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Hi Harry,

standard NAV doesn't have foreign currency (transaction currency) in G/L entries. Our Addon (Plexada Transaction Currency) does, and also F/X adjustments for G/L accounts. The adjustment is done by balance per currency (and dimension combination if you want) per account. We also have variants where you're using the unrealized accounts, if you have revaluations of pending deals.

with best regards

Jens

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Community Member on at

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Hi Robertas,

For loans Vendors/Customers can be used also. The advantage is that you can use due dates &Co.

The disadvantage is the account for revaluation instead. :)

BR,

Claudiu

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Jens Glathe 6,092 on at

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Problem is, everything else than using a G/L account for this is sort of a workaround. That's one reason why we're selling this as an AddOn. You can also combine it with Open Item accounting - this gives you quite some capabilities when you have currencies and adjustments.

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Community Member on at

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Thank you all for the help with this, I'm going to find out more about the type of revaluation accounts Finance are trying to hold. I'll post again on there once i'm my the team.

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Community Member on at

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AJ Thanks for taking the time to help me, much appreciated. I understood this part of the setup, I really needed more on how a company can managed (say) a couple of hundred accounts that will have money moved through them (they carry out wealth management for clients), and these will be the client money accounts. Would love to hear any further Tidbits you may have on this!

Thanks!

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Community Member on at

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There are companies with thousands of clients.

For you, a development to import bank account statements (MT940 or xml) in those "client" accounts is a solution.

And Standard Journals, if helps.

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