Foreign Exchange Revaluation

Introduction

Foreign exchange revaluation allows you to identify realised and unrealised gains and losses made due to exchange rate fluctuations and enables you to process them in your accounts. Foreign revaluation is often required in Accounts Receivable, Accounts Payable, General Ledger, Cash and Banking.

Typical Problems

Manually calculating foreign exchange revaluation can be complex and time-consuming. The calculations involved are easy to get wrong causing discrepancies in reporting.

Most finance systems provide the functionality to revalue foreign bank/cash accounts but not Accounts Payable, Accounts Receivable or the GL which can make insights into realised and unrealised gains/losses difficult to identify.

Solutions

Built-in functionality for cloud accountancy systems allows you to not only evaluate the banks and cash accounts but also other modules like AR and AP, allowing the balance sheet to be accurately recorded.

This allows you to automatically post the required adjustment journals needed to update FX gains and losses, the system also automatically posts gains and losses when invoice transactions are paid and receipted.

Benefits/ROI

Clear real-time insights into FX gains and losses to understand the impact on profit and loss reports.

Time is saved from automated processes taking away the need to manually calculate and post journals.