The Balance Revaluation Process is used to adjust the Account Balance Figures of the Denominated Currencies other than the Accounting Currency. The Balance Revaluation Adjustments represent the difference in the Balance Value due to changes in the Currency Conversion Rates between the Date of the Original Journal Entry and the Revaluation Date.
The Balance Revaluation Process begins with the Data present in the Management Ledger Period Balances. In the Revaluation Adjustments Stage, the Revaluation Adjustments are performed against each Period Balance Amount to calculate the Adjustment Amount. As a result, during the Revalued Management Ledger Period Balances Stage, in the Period Balance Table, the adjusted balances are recomputed and inserted in a new Row with an Incremental Version.
This Section provides information about the Revaluation Process.
Topics:
· Balance Revaluation Settings
· Use and Execute Revaluation Process
The main phases in the Revaluation Process are as follows:
· Management Ledger Period Balances
· Inputs from the Currency Exchange Rates Service
· Revaluation Adjustments
· Revalued Management Ledger Period Balances
The Revaluation Process begins with the Data present in the Management Ledger Period Balances. In the Revaluation Adjustments Stage, the Revaluation Adjustments are performed against each Period Balance Amount to calculate the Adjustment Amount. As a result, during the Revalued Management Ledger Period Balances Stage, in the Period Balance Table, the adjusted balances are recomputed and inserted in a new Row with an Incremental Version.
This Section provides information about the Settings for the Balance Revaluation Process.
The Revaluation Process reads the following Settings information during the Execution Process in the Managing Processes. These Settings affect the design and execution of the Revaluation Process in the Process Orchestration.
1. To navigate to the Balance Revaluation, on the Home Page, click Administration, and click Balance Revaluation. The Balance Revaluation Settings Page is displayed.
2. Set the following Values.
Entity |
Description of Action |
|---|---|
GL Types |
Review and select these General Ledger Type of Journal Entries, which are required for the Revaluation Process. Select from the following GL Types list: · Asset · Expense · Loss · Gains · Contra Asset · Contra Liability · Liability · Owners Equity · Revenue |
Offset |
Enable if you need to generate the Offset Balances against the Revaluation Adjustments for Equivalents. |
Offset COA Values |
Arrange the Offset Chart of Account Values either by the System Value or the Default Value. System: Instrument Gain is a part of the Offset Entries Output. Every calculation is done at the Management Ledger Gain level including the Instrument Account. Then in the Revaluation Process Execution Stage, for each Account in the Management Ledger Period Balances, the Offset Balance is generated. Default: When the Offset COA Values are set to Default, the System generates the Offset Balances at the Legal Entity Level. |
Reversal |
Enable if you need to revise the Revaluation for Period Balances by reversing the Prior Period Adjustments and adding the Current Period Adjustments. |
3. Click Save.
Revaluation creates an automatically reversing entry for the difference between the original functional currency equivalent balance and the revalued functional currency equivalent balance in each Fiscal Period you revalue. As the transactions automatically reverse, the effect of revaluation is completely withdrawn in the Fiscal Period that follows the last Fiscal Period you specify for revaluation. Therefore, use the Unrealized Gain or Unrealized Loss to record the account transactions for the Unrealized Gains and Unrealized Losses in each Fiscal Period you revalue.
To record the account transactions for the Unrealized Gains and Unrealized Losses for a Legal Entity required during the Revaluation Process, do the following:
1. Navigate
to the Dimensions Tab. To navigate to the Dimensions Tab, on the Home
Page, click Administration,
and click Balance Revaluation.
The Balance Revaluation
Settings Page is displayed.
Click the Dimensions Tab.
2. On the Dimensions Tab, all the available Legal Entities are listed on the Left Hand Side. For a Legal Entity, to set up the Unrealized Gain and Unrealized Loss, select the required Legal Entity, and do the following:
a. Click the Unrealized Gain Account and select the required value from the list.
b. Click the Unrealized Loss Account and select the required value from the list.
c. Click Save to save the changes. An Acknowledgement Message is displayed: Saved successfully. Close the Acknowledgement.
In the Revaluation Adjustments Stage, to arrive at the Revalued Amount (Revalued Amount Values in the Management Ledger Revaluation Balances Entity) before initiating the Revaluation Execution Process, complete the following tasks:
1. For any Balance you arrive at from the Period Balance perspective, compare the current Exchange Rate Value in the Preparation Currency Exchange Rates Entity against the Period Balance corresponding to the Exchange Rate in the Management Ledger Revaluation Balances Entity .
2. Apply the following Formula:
§ For AST/LIAB (Assets or Liabilities) Type, calculate the Adjustment Amount using the following Formula:
Current Period YTD Balance x Revaluation Rate – Currency Period YTD Balance LCY
§ For REV/EXP (Revenue or Expenses) Type, calculate the Adjustment Amount using the following Formula:
(Current Period YTD Balance – Prior Period YTD Balance) x Revaluation Rate –
(Currency Period YTD Balance LCY – Prior Period YTD Balance LCY)
NOTE:
Revaluation is processed only for the Open Fiscal Periods.
Ensure that you Resave Hierarchies and then proceed with the use and execution of the Balance Computation Management Ledger Process.
To create and execute the Revaluation Process (Balance Revaluation Management Ledger Process) in the Process Orchestration, do the following:
1. To
access the Balance Revaluation (Balance Revaluation Management Ledger
Process) Pipeline, on the Home Page, select the Process Orchestration.
The Process Modeller
Page is displayed.
2. On the Process Modeller Page, search and select the Balance
Revaluation Management Ledger Process.
The Process Flow Page is displayed. This Process
Flow is designed on the Drawing Canvas using the Transition,
Activity, and Widgets
Components available in the floating tool bar. The BalanceComputation
Widget is used for each GL Type Activity such as Assets, Liabilities,
Expenses, Revenue, Gains, Losses, Contra Asset, Contra Liability, and
Owner’s Equity set in the Balance
Revaluation Settings Section.
The Activities are repeated in the Run for each General Ledger Type and
are executed in parallel.
3. To view the details of any Activity, double-click on the Activity and the details related to its Activity, Transition, and Notification are displayed. GL Type for the GenerateOffsets Task need to be NULL or blank. On the drawing canvas, you can select and see the Definition, Data Fields, and Application Rule details.
4. To execute the Run, you can select the Run Parameter Values using the Execution Button on the Process Page or on the Process Modeller Page.
5. Go to the
Process Modeller Page to execute the Run. Click
the Menu Button corresponding to the Balance Revaluation Management Ledger
Run process that needs to be executed. Click Execute
Run.
The Execution Page is displayed.
6. On the Execution Page, to execute the Run with parameters, select With Parameters in the Execution Type List. Select or enter the required values for each field as follows:
Field Name |
Description or Instruction |
|---|---|
Rate Data Origin |
This is the source of Exchange Rates Value. |
Extraction Date |
Use the Calendar Button to select the Extraction Date or Run Date for the Pipeline. |
Currency |
Use the Link Button to select the Currency Code used to calculate the amount during the data population in the target table. |
Data Source |
Use the Link Button to select the required data source from the Available Values List, move it to the Selected Values List, and click OK. |
Rate Version |
Select the required Rate Version. |
Rate Type |
Select the Rate Type from the drop-down list. The options are as follows: · Average · Spot · Start of the Period · End of the Period |
7. To save the details and execute the Run, click the Apply Button. The Run Execution begins.
NOTE:
The execution of the Run Pipeline is triggered using the selected Extraction Date.
See the Managing Processes Section for more details about the Processes.
8. To verify the Run Execution of the Balance Revaluation Management Ledger Process, do the following:
a. To open the Process Monitor Page, on the Process Modeller Page, click the Process Monitor Button or select Process Flow Monitor on the Process Menu on the Process Modeller Page.
b. The Process Monitor Page is displayed listing all the Run Instances corresponding to the Balance Revaluation Management Ledger Process. On the Process Monitor Page, search by the Process ID, or by the Process Name Balance Revaluation Management Ledger, and select the Process Instance for the required Run Pipeline (Process) that was executed.
9. The Process Flow Page is displayed with the Run Execution Status on each Node of the Balance Computation Management Ledger Process.
10. To verify the Run Execution Logs, do the following:
a. On the Process Monitor Page, click
the required Process Instance for which you need to verify the Execution
Logs.
The Process Flow Page is displayed
with the Run Execution Status on each Node.
b. To see the Execution Status details of a Node, double-click on that Node. The Execution Status details Page is displayed. Click Execution Logs.
The Log Viewer Page is displayed, which lists all the Logs related to the Process Instance. To see an elaborated information of a log entry, click the Show More Button. Click outside the Log Viewer Page to close it.