How to Revalue Account Balances Denominated in Ledger Currency of Reporting Currency

In certain cases, you might want your primary or secondary ledger balances translated to a reporting currency, not at the account balance level, but with journal level details.

If you want a journal-level or subledger-level reporting currency to produce the same balances that you would get after running the Translate General Ledger Account Balances process for a balance-level reporting currency, run the Revalue Balances process in the reporting currency.

When the revaluation basis in a journal-level or subledger-level reporting currency is set to Primary ledger currency, the revaluation adjustment that’s calculated for the reporting currency is based on the account balance in the ledger currency of the primary or secondary source ledger. The difference in an account balance due to the fluctuation in the conversion rate between the ledger currency of the source ledger and the ledger currency of the reporting currency is booked as an adjustment in the reporting currency.

In general, when you submit the Revalue Balances process for all currencies, by leaving the Currency field blank in the revaluation rule, the process skips the currency of the reporting currency, and revalues all other foreign currency balances for the selected accounts.

To submit revaluation in the ledger currency of the reporting currency, perform these steps as part of your reporting currency and revaluation rule setup.

1. In the Setup and Maintenance work area, go to the Manage Reporting Currencies task.
   • Offering: Financials
   • Functional Area: General Ledger
   • Task: Manage Reporting Currencies, with the scope set to the primary or secondary ledger
2. Select the journal-level or subledger-level reporting currency.
3. In the Revaluation Basis field, select Primary ledger currency and save your changes.
4. Go to the Manage Revaluations task and select the revaluation rule.
5. In the Currency field, select the ledger currency of the reporting currency and save your changes.
6. Submit the Revalue Balances process for that revaluation rule.

The Revalue Balances process revalues balance sheet accounts at the month-end rate and income statement accounts at the average rate, or at a revaluation rate of your specification, even if the entered currency for an account is the same as the ledger currency of the reporting currency.

Note: This method of using revaluation to adjust the balances of a journal-level or subledger-level reporting currency does differ from using the translation method to generate translated balances, or of using a balance-level reporting currency. Your organization's chief accounting officer must consent to this currency treatment before performing revaluation in your journal-level or subledger-level reporting currency in this manner and for this purpose.