Multicurrency Revaluations are taking a snapshot of the current picture to see your value as of certain date. Only foreign currency transactions or accounts are revalued, since home currency transactions are always booked at a 1.0 exchange rate. The system takes the current exchange rate from the system (based on the date) and compares it to a document (Voucher or Invoice) exchange rate. The difference is then booked as Unrealized Gains or Losses. They typically post on the last day of the month and reverse the very next day, unless you specify a different date in the batch entry window. The reason they reverse is because they are really just an estimate. Only one open revaluation batch can exist (one for AP, one for AR, and one for GL).
Revalue GL is used to calculate the Revaluation gains and losses associated with GL accounts that have a natural currency balance. The system processes only the accounts that have ‘Revalue Accounts’ selected in Maintain Accounts. The General Ledger Accounts for Multicurrency postings such as Unrealized and Realized Gains and Losses come from Setup Currencies. The Exchange Rates are defined in MC/Maintain Exchange Rates. The system calculates gain or loss amounts for revaluation accounts with activity in the current period. The system creates a journal entry that offsets the revaluation gain or loss amount and posts it with the revaluation entry for the specified date.
Important: when applying a foreign currency Debit Memo or Credit Memo to another memo, Voucher or Invoice, the currency exchange rate must be the same on both documents. This is because we never want to generate a foreign currency gain or loss posting on an internal document.
PO -When a Receipt of Goods is processed, then the currency exchange rate on the voucher will come from the rate used when the Receipt of Goods was posted based on Transaction Date. The rate cannot be changed on the voucher.
IM – Inventory Management does not use Multicurrency to post transactions. The Costs are maintained in the home currency values only.
