Closing Balance left in reporting currency of bank but in transaction currency it is zero.

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I am doing the bank reconcilation for one of Forgein currency bank. Its closing balance at the end of year is zero and reconcilation is also done according to transaction currency but while looking to Trial balance closing balance for the bank ledger it is not coming zero.
Can anyone help me into it. Thanks in Advance.

Below i explained some scenario of our process.

We have Exports customer, we make sales order for him in GBP. We received payment from him in GBP after that we transfer that GBP amount to USD currency in another bank. Then finally we received that USD amount to our INR currecny bank.

There are still many settlements is left for customers, Is this problem of INR balance is coming from this settlement issue ?

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Ludwig Reinhard Microsoft Employee on at

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Hi Shivendra singh kushwah,

Have you run a foreign currency revaluation in the General Ledger module for those ledger accounts that are linked to your bank accounts in the banking module?

Ludwig

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Actually i also read about that but i didnt understand its use will it help me to clear that closing balance present in bank ledger.
Can you please explain me little bit about its working (foregin currency evalution), what impact will come after running that ?

Thanks

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Ludwig Reinhard Microsoft Employee on at

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Hi Shivendra singh kushwah,

Running a foreign currency revaluation in GL is in general fine as long as the ledger accounts for which a foreign currency revaluation is run are not included in subledgers.

One example are ledger accounts that are linked to your bank accounts.

Other examples include summary ledger accounts that are setup in your AP/AR posting profiles.

For those accounts you wouldn't run a foreign currency revaluation in GL but rather in the subledgers directly (AP, AR, ...)

The banking module is a bit 'special' as it does not include a foreign currency revaluation functionaltiy for most countries.

If you thus run a foreign currency revaluation for the ledger account that is linked to your bank account in the Banking module you might consequently get a variance between the GL and Banking module balances.

That is because the GL foreign currency revaluation does not affect subledgers, such as AP, AR or the Banking module.

Based on what you mentioned above I am not sure whether this is really the problem in your case. Yet, I believe it is a likely source of that issue and thus worth to investigate further.

Hope this helps,

Ludwig

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Should i run a Foregin currency revaluation for Bank ledger accounts in GL ?

Will it help or create more problem ?

I want to know after effect of this process. It is asking 2 ledger account FROM and TO, Will it run for all the account in between those ledger accounts ?

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