Foreign currency revaluation - Profit and loss ?

Hi All ,

Generally we will run the Foreign currency revaluation form to complete a foreign currency revaluation for the Balance sheet accounts .

But we have the option of Adjust profit and loss accounts check box to revalue the balances for accounts that have a main account type of Profit and loss.

Can any share in which case we need to run the Foreign currency revaluation for the P&L accounts also.

May I know the answer .

Thank you.

Please share your thoughts.

Hi Lally,

This check box is used, if at all any adjustments are made,

In short if at all we make any appropriate adjustments to the Balance sheet accounts then we have to revise calculations for dependent P&L accounts, in this case we run the Foreign Currency Revaluation.

Hope this would help in understanding !!! If Yes mark as a solution

Regards,

Ashwin [Y]

Hi Ashwin ,

I know the functionality Curreny revaluation journals and how does it work .

Generally we run for Balance sheet accounts only . My Question in which case we need to run for the P&L accounts also.

Hi Lally,

If at all we do transactuion in foreign currecy related to Income and Expenditure, then we need to run

with Adjust P & L account functionality

Ex:- Export Sales made during the period or month, at the time of Transactions Posting system will consider the active period currency exchange rate, but in the analysis or review purpose management will see for average currency rate. To make sales with average rate we need to run foreign Currency Exchange rate witrh Adj P&L .

Regards,

Ashwin/Rajesh