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:
- Enter and upload the setup for FX revaluation and FX transfer.
- Define a revaluation using the Manage Revaluations task.
- 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 |
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 |
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 |
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 |