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.