How the General Ledger Revaluation Process Works for Revenue Recognition

When using the transaction currency as the basis for revenue allocation and recognition for revenue contracts, you must also configure and use the Revaluation process in Oracle General Ledger.

Revaluation is the process of adjusting the accounted value of foreign currency-denominated balances. The purpose of revaluation is to true up the liability or asset accounts that might be materially understated or overstated at period end using a month-end conversion rate.

Revaluation adjustments represent the difference in the value of the balance due to changes in conversion rates between the date of the original journal entry and the revaluation date. The adjustments are then posted through journal entries to the underlying account with the offset posted to an unrealized gain or loss account.

The Revaluation process operates at the portfolio (general ledger account balance) level, and its foreign currency conversion entries are visible only in General Ledger.