Revaluate balance in foreign currencies -Sage 50 CA

Question

Hi. I'm a new user of Sage 50 CA. Can somebody let me know if it is possible to run a revaluation process to revaluate balance in foreign currencies please?

RandyW · Accepted Answer

Yes. Bank accounts need to be revalued periodically. 
 
Basically you post a $1.00 G/L transaction between Currency Exchange and the foreign currency bank account, then post the opposite amount. The first transaction is done at an exchange rate of 1 + the amount you need to adjust, the second one reverses the first transaction at a rate of 1.000 
 
So if you need to adjust the home currency value down by $2,101.70 you would debit the Exchange gain / loss account by $1.00 at a rate of 2,102.7000, credit the bank account. The next transaction would credit exchange gain / loss by $1.00 at 1.00 
 
The net effect is to correct the home currency value without a net change to the foreign currency amount. 
 
Other foreign currency amounts (i.e. receivables and payables) can be revalued in a similar way, or with an extra G/L account (i.e. if 1200 is A/R, create a 1201 account for Gain/Loss as of year end) 
 
Receivables and Payables are always cleared out as they are paid, so there's no need to revalue them throughout the year.

Sage 50 Canada

Revaluate balance in foreign currencies -Sage 50 CA

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