15.7 Revaluation

Prerequisite: You must execute GL Balance process before executing Revaluation process.

Ensure to create "Revaluation for AFCS" ESS job in ERP instance. For more information, see ESS Job creation

The Balance Revaluation Process is used to adjust the Account Balance Figures of the Denominated Currencies other than the Accounting Currency. The Balance Revaluation Adjustments represent the difference in the Balance Value due to changes in the Currency Conversion Rates between the Date of the Original Journal Entry and the Revaluation Date.

AFCS Revaluation process facilitates reflection of changes to balance figures designated in functional currency terms because of variation in exchange rates between entered and functional currencies over time, also recording Unrealised Gain or Loss movements corresponding to such changes.

AFCS will automate obtaining revaluation configuration information from the Oracle ERP Cloud instance it is configured to be linked with, and use that as the basis for its revaluation process. This covers the list of code combinations that need to be revalued (scope of revaluation), unrealized gain/loss accounts to which such amounts are posted, and reversal time line, where relevant. This enables Revaluation process to be aligned with ERP system.

The Revaluation process sequentially generates four revaluation journals and loads them into the Revaluation Entries entity. The daily tasks of the Revaluation fetches the revaluation non- reversal journal entries from the revaluation entries table.

Note:

The revaluation reversal journal will generate the journal entries only based on the reversal date of the ERP metadata entity.

Note:

Users can perform the execution of multiple revaluation rules on the same day, but each rule can be executed only once per MIS date and, the incremental revaluation execution of same rule for an MIS date is not supported.

Note:

AFCS does not offer functionality to automatically net unrealised gain and loss amounts, or post such net amount against a single combination of CoA and ML segment values, if unrealised gain and unrealised loss segment values defined in ERP for a given rule are distinct.

Note:

Should

• the segment code combinations that unrealised gain/loss values from revaluation are posted against in ERP GL are also in use for maintenance of other balance information unrelated to such unrealised gain/loss, and
• such code combinations be within scope of subsequent revaluation as advised by user-configured revaluation rules in ERP GL, AFCS will NOT take the unrealised gain/loss portion up for revaluation.