1. Using General Ledger
  2. Example of Income Statement Account Balance Transfer to FX Position Accounts and Revaluation

Example of Income Statement Account Balance Transfer to FX Position Accounts and Revaluation

This example shows how journals for position transfer, standard revaluation, and position revaluation are created based on FX transfer and FX revaluation setups.

Here’s the list of steps performed:

  1. Enter and upload the setup for FX revaluation and FX transfer.
  2. Define a revaluation using the Manage Revaluations task.
  3. Run the Transfer Income Statement Account Balances to FX Position Accounts and Revalue process.

In this example, the chart of accounts has 5 segments. Segment 1 is the primary balancing segment and segment 3 is the account segment. The ledger currency is USD.

This table shows the columns and values on the FX Revaluation Setups tab that were successfully uploaded to the application.

Column Value
Ledger Vision Corporation
Currency GBP
Balance Sheet FX Position Account 01-000-FXPO-0000-000
Balance Sheet FX Counter Position Account 01-000-FXPC-0000-000
Require Same Accounted Balance for FX Position and FX Counter Position Accounts Y
FX Gain Account 01-000-FXG-0000-000
FX Loss Account 01-000-FXL-0000-000
Classify Account as Off-Balance Sheet N
Balance Sheet Adjustment Account 01-000-BSAD-0000-000
Off-Balance Sheet Adjustment Account 01-000-BSOF-0000-000
Note: Although there are values for the Balance Sheet Adjustment Account and the Off-Balance Sheet Adjustment Account columns, it isn’t necessary to enter them when the Classify Account as Off-Balance Sheet value is N. The accounts are required when the Classify Account as Off-Balance Sheet value is Y.

This table shows the columns and values on the FX Transfer Setups tab that were successfully uploaded to the application.

Column Value
Ledger Vision Corporation
Currency GBP
Balance Sheet FX Position Account 01-000-FXPO-0000-000
Income Statement Account 01-000-7901-0000-000
Income Statement FX Position Account 01-000-ISPO-0000-000
Income Statement FX Counter Position Account 01-000-ISPC-0000-000

This table shows the revaluation definition for the balance sheet FX position account.

Field Value
Name Vision Corporation FX Revaluation
Chart of Accounts Vision Corporation Chart
Conversion Rate Type Corporate
Unrealized Gain Account 01-000-6160-0000-000
Unrealized Loss Account 01-000-6160-0000-000
Income Statement Accounts Basis PTD
Post automatically Y
Filter Conditions Account Equals to FXPO
Note: Income statement accounts are usually revalued at a PTD basis. If required, you can set it to YTD.

The conversion rate during journal or balance creation is 1.8.

This table shows the income statement account and balances.

Income Statement Account GBP USD
01-000-7901-0000-000 148,200.00 DR 266,760.00 DR

This table lists the parameters and values for the Transfer Income Statement Account Balances to FX Position Accounts and Revalue process.

Parameter Value
Data Access Set Vision Corporation
Ledger or Ledger Set Vision Corporation
Revaluation Vision Corporation FX Revaluation
Accounting Period May-24
Accounting Date 5/31/24
Rate Date 5/31/24
Options Transfer and revaluation

This table shows the posted journal lines for the position transfer. The journal batch name begins with Position Transfer and the source and category for the journal is Position Transfer.

Line Account Currency Entered DR Entered CR Accounted DR (USD) Accounted CD (USD) Description
1 01-000-FXPC-0000-000 USD 0.00 266,760.00 0.00 266,760.00 Ledger currency counter position of the GBP currency for the 01-000-7901-0000-000 account.
2 01-000-FXPO-0000-000 GBP 148,200.00 0.00 266,760.00 0.00 Balance sheet FX position in the GBP currency for the 01-000-7901-0000-000 account.
3 01-000-ISPC-0000-000 USD 266,760.00 0.00 266,760.00 0.00 Income statement FX counter position of the GBP currency for the 01-000-7901-0000-000 account.
4 01-000-ISPO-0000-000 GBP 0.00 148,200.00 0.00 266,760.00 Income statement balance transfer in the GBP currency for the 01-000-7901-0000-000 account.
Total NA NA 414,960 414,960 533,520.00 533,520.00 NA

This table shows the posted journal lines for the standard revaluation batch. The journal batch name begins with Revalues. The source and category for this journal is Revaluation. The conversion rate for the Corporate conversion type on May 31, 2024, is 1.239861.

Line Account Entered DR (GBP) Entered CR (GBP) Accounted DR (USD) Accounted CR (USD) Description
1 01-000-FXPO-0000-000 0.00 0.00 0.00 83,012.60 Revaluation journal created for currency GBP transactions.
2 01-000-6160-0000-000 0.00 0.00 83,012.60 0.00 Revaluation journal created for currency GBP transactions.
Total NA 0.00 0.00 83,012.60 83,012.60 NA
Note: The revaluation amount of 83,012.60 is calculated by taking the difference between the journal conversion rate of 1.8 and the Corporate rate at revaluation of 1.239861 and multiplying that difference by the entered GBP amount.

This table shows the posted journal lines for the counter position account revaluation batch. The journal batch name begins with Position Revalue. The source and journal category for this journal is Position Revalue. The journal is created with only the Balance Sheet FX Counter position account and FX Revaluation Gain or Loss account because the Classify Account as Off-Balance Sheet column in the FX Revaluation Setups tab is set to N.

Line Account Entered and Accounted DR (USD) Entered and Accounted CR (USD) Description
1 01-000-FXG-0000-000 0.00 83,012.60 Foreign exchange gain for the GBP currency.
2 01-000-FXPC-0000-000 83,012.60 0.00 Ledger currency counter position of the GBP currency.
Total NA 83,012.60 83,012.60 NA

If the Classify Account as Off-Balance Sheet column in the FX Revaluation Setups tab is set to Y, then the FX revaluation entry would be as follows, with 2 additional entries for the adjustment accounts.

Line Account Entered DR (USD) Entered CR (USD) Description
1 01-000-BSAD-0000-000 83,012.60 0.00 Balance sheet adjustment for the GBP currency.
2 01-000-BSOF-0000-000 0.00 83,012.60 Off-balance sheet adjustment for the GBP currency.
3 01-000-FXG-0000-000 0.00 83,012.60 Foreign exchange gain for the GBP currency.
4 01-000-FXPC-0000-000 83,012.60 0.00 Ledger currency counter position of the GBP currency.
Total NA 166,025.20 166,025.20 NA