PeopleSoft Payables Revaluation Processing

Revaluation adjusts the domestic currency value of asset and liability account balances that are maintained in foreign currencies. It is necessary to reflect the actual value of these assets and liabilities in the domestic currency, because the exchange rates fluctuate between the domestic currency and the foreign currencies. Revaluation is generally performed at the end of each accounting period and results in a domestic currency adjustment to the account being revalued, with an offsetting entry being made to the revaluation gain or loss accounts. In PeopleSoft Payables, the PS/AP Revaluation process determines the revaluation adjustment required for the balance sheet account and creates a journal entry for this adjustment and its offsetting gain or loss amounts.

You might need to revalue your open payables for financial reporting purposes. PeopleSoft Payables enables you to create summarized revaluation accounting entries and input these entries into the Journal Generator. You can run the revaluation for one or many PeopleSoft Payables business units.

You revalue transactions as follows:

1. Run the PS/AP Revaluation process.

   The PS/AP Revaluation process creates the unrealized gains and loss entries for selected PeopleSoft Payables business units for a given period. The PS/AP Revaluation process inspects the transaction tables and applies a specified exchange rate to each unpaid, scheduled payment which has a voucher transaction currency that is not in the business unit's base currency. It then applies the exchange rate to create a revaluation base amount, which it uses to create a revaluation accounting line.

2. Run the Journal Generator Application Engine process (FS_JGEN).

   The Journal Generator process creates journals from the revaluation accounting lines. Make sure that you have set up an accounting definition to relate the revaluation accounting lines to journal lines. You also need a journal generator template specifying the creation of a reversing journal for revaluation.

If you run revaluation in PeopleSoft Payables, rather than in PeopleSoft General Ledger, the process happens at a specified level of detail. This provides more flexible results if your exchange rates are volatile. If you do run the process in PeopleSoft Payables for the accounts that you use here, you do not want to run the PeopleSoft General Ledger revaluation against the same account balances in PeopleSoft General Ledger, because you would be double counting.

Note:

Vouchers must be posted before you can run revaluation.