Revaluing Transactions
|
Page Name |
Definition Name |
Usage |
|---|---|---|
|
RVL_RUN_CNTL_AR |
Run the Revaluation Application Engine process (AR_REVAL). |
|
|
RVL_AR_ACCTG_ENTS |
View the accounting entries that the Revaluation process created for unrealized gain or loss. |
Revaluation restates the current receivables balance in the base currency, generating figures for unrealized gain or loss. As exchange rates fluctuate between the base currency and foreign currencies, the current value of open items changes. Companies generally revalue accounts at the end of each accounting period, resulting in adjusted entries that recognize unrealized gain or loss.
Note: If you use drafts to pay for items, the revaluation process also includes items paid by drafts until the draft status is Complete. The status for remitted drafts is complete when the cash is recognized on the due date, the discount date, or during bank reconciliation.
Some companies perform revaluation within their general ledger system. Others revalue in the source system and send resulting journals to the general ledger. The revaluation option is designed for companies that revalue in PeopleSoft Receivables and then send the results to their general ledger.
The Receivables Revaluation process performs revaluation and generates unrealized gain or loss information by currency based on a specified rate type. You can use the unrealized gain or loss information to create an accrual entry for the general ledger that is reversed when you revalue again and make the next accrual.
Accounting Entry Summarization
You can summarize accounting entries at three levels:
Business unit level.
Customer level.
Item level.
You make this choice on the Receivables Options - Payment Options page.
If you choose to summarize at the business unit level, the values for customer ID and item ID will be zero. If you choose to summarize at the customer level, the values for the item ID will be zero. If you summarize at the item level, each field contains a value.
The following examples show the accounting entries that the process would create using different summarization levels on the Receivables Options - Payment Options page for the following scenario:
The business unit FRA01 has a base currency of EUR.
The unrealized gain account is 68001.
The unrealized loss account is 68002.
The revaluation process includes the following invoices:
Customer
Invoice Number
AR Account
Unrealized Gain or Loss
A111
A1
12000
+10.00
A111
A2
22000
-40.00
A111
A3
12000
+50.00
B222
B1
22000
+20.00
B222
B2
12000
-80.00
If you summarize at the business unit level, the process creates the following accounting entries:
|
Business Unit |
Customer |
Invoice |
Currency |
Account |
Debit |
Credit |
|---|---|---|---|---|---|---|
|
FRA01 |
0 |
0 |
EUR |
68002 |
40.00 |
|
|
FRA01 |
0 |
0 |
EUR |
12000 |
|
20.00 |
|
FRA01 |
0 |
0 |
EUR |
22000 |
|
20.00 |
If you summarize at the customer unit level, the process creates the following accounting entries:
|
Business Unit |
Customer |
Invoice |
Currency |
Account |
Debit |
Credit |
|---|---|---|---|---|---|---|
|
FRA01 |
A111 |
0 |
EUR |
68001 |
|
20.00 |
|
FRA01 |
B222 |
0 |
EUR |
68002 |
60.00 |
|
|
FRA01 |
A111 |
0 |
EUR |
12000 |
60.00 |
|
|
FRA01 |
A111 |
0 |
EUR |
22000 |
|
40.00 |
|
FRA01 |
B222 |
0 |
EUR |
12000 |
|
80.00 |
|
FRA01 |
B222 |
0 |
EUR |
22000 |
20.00 |
|
If you summarize at the item level, the process creates the following accounting entries:
|
Business Unit |
Customer |
Invoice |
Currency |
Account |
Debit |
Credit |
|---|---|---|---|---|---|---|
|
FRA01 |
A111 |
A1 |
EUR |
68001 |
|
10.00 |
|
FRA01 |
A111 |
A1 |
EUR |
12000 |
10.00 |
|
|
FRA01 |
A111 |
A2 |
EUR |
68002 |
40.00 |
|
|
FRA01 |
A111 |
A2 |
EUR |
22000 |
|
40.00 |
|
FRA01 |
A111 |
A3 |
EUR |
68001 |
|
50.00 |
|
FRA01 |
A111 |
A3 |
EUR |
12000 |
50.00 |
|
|
FRA01 |
B222 |
B1 |
EUR |
68001 |
|
20.00 |
|
FRA01 |
B222 |
B1 |
EUR |
22000 |
20.00 |
|
|
FRA01 |
B222 |
B1 |
EUR |
68002 |
80.00 |
|
|
FRA01 |
B222 |
B1 |
EUR |
12000 |
|
80.00 |
Before you run the Receivables Revaluation process, perform these tasks:
Determine how you want to view unrealized gains and losses on financial statements.
If you want to view them separately, create one distribution code for unrealized gains and another for unrealized losses. Otherwise, create one distribution code for both unrealized gain and unrealized loss.
Determine at what level you want to summarize the accounting entries for each business unit on the Receivables Options - Payment Options page.
Run the Receivables Update process for all business units whose transactions you want to revalue.
Use the Receivables Revaluation process page (RVL_RUN_CNTL_AR) to run the Revaluation process.
Navigation:
Field or Control |
Description |
|---|---|
Check Only |
Select to run the Revaluation process without distributing the accounting entries to the general ledger. The accounting entries are created, but are marked Hold, and are not available for distribution to the general ledger. If this check box is selected, you can run this process as many times as needed to evaluate results using various rate types. Each time you run the process, it deletes any entries marked Hold from the previous run and creates new entries. |
Rate Type |
Select the exchange rate type for revaluation. |
Entry Currency Code |
Select a currency code to revalue a single currency. Use a single currency to evaluate your exposure to certain unstable currencies without running the whole report. To revalue all currencies, leave this field blank. |
Account |
Override the default receivables account for the item, if needed. |
Accounting Date |
Enter the accounting date for the revalued amount of each item. |
Note: The Receivables Revaluation process revalues only the items that you select to revalue. By default, the system revalues all items. You can override the default for a single item on the View/Update Item Details - Detail 1 page or on the detail information pages linked to a worksheet. You view a detail information page from any worksheet, but you can change the revalue flag only from the maintenance, payment, or draft worksheets.
Use the Receivables Revaluation inquiry page (RVL_AR_ACCTG_ENTS) to view the accounting entries that the Revaluation process created for unrealized gain or loss.
Navigation:
Field or Control |
Description |
|---|---|
Currency |
The page displays one row for each currency that you revalued. |
Accounting Date |
Displays the date that the Journal Generator process uses when creating journals for the general ledger. |
Distribution Status |
Indicates if accounting entries with the specified currency have been incorporated in journals generated for the general ledger. Values are: H (hold): You selected the Check Only check box on the run control request. D (distributed): The Journal Generator process created journals that include revaluation entries in the currency. In this case, the general ledger Journal ID and Journal Date fields appear. When you run the Revaluation process, the system deletes all existing entries in the currency that have not yet been distributed to the general ledger. |
Note: If entries are unbalanced, look for a missing distribution code or journal template. Because the Journal Generator process selects accounting entries based on their journal template, each line must have a journal template associated with it when it is created. The system uses the journal template specified on the Receivables Definition - Accounting Options 1 page and creates unbalanced entries if the template is missing.