Revaluing Foreign Currency G/L Balances

Objectives

After completing this lesson, you will be able to:

  • Understand the G/L balances foreign currency revaluation process

The G/L Balances Foreign Currency Revaluation

Introduction

Greg will learn the steps to revalue G/L accounts such as bank accounts recorded in a foreign currency. To create your financial statements, you must revalue foreign currency account balances and foreign currency G/L open items. These consist of transactions that are posted in a currency that is different from the local currency (which is EUR in our business scenario).

Since exchange rates can change daily, Greg will have to revalue the closing balance of a foreign currency G/L account at period-end. Any difference in the exchange rate will result in an adjustment posting to the G/L account balance to reflect the month-end revaluation.

Foreign Currency Valuation - G/L Balance Sheet Accounts in Foreign Currency

Revalue a G/L Account in Foreign Currency

Practice yourself using the interactive simulation to manage the foreign currency valuation of G/L account balances.

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