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title: "Foreign Exchange Revaluation"
canonical: "https://kb.myframeworks.com.au/space/PROSTIXV48DOC/31101463/Foreign%20Exchange%20Revaluation"
format: markdown
---
Goal: Use Foreign Exchange Transaction Revaluation to revalue transactions at the current exchange rate.  At period-end, the Transaction Revaluation is run to revalue transactions currently still open whose currency is not in the local currency. This ensures that these amounts are reported at the newest exchange rates. Note that realised foreign exchange gain or loss is not recorded until the payment is made. Steps: 1. From the ' Main   Menu ' select options -  'Purchasing & Receipting ' - ' Import   Purchasing ' - ' Foreign Exchange Revaluation' . 2. After choosing the company, you are presented with a screen with the following message:  'This program will re-value your open foreign supplier invoices to the currency exchange rates on the nominated date. Please ensure that your exchange rates have been correctly set.' 3. The screen also has the following selection criteria: Currency   From/To:  key the currency range you wish to revalue. Date   Effective :  key the date of the revaluation.  Report   Only:  key 'yes' to print the report without updating creditors. If you choose 'no' to 'Report Only', the invoices will be revalued. 4. The program validates the effective date entered and then works through the supplier invoice records that are open and do not have a fixed exchange rate. 5. The variance between the original exchange rate and the exchange rate for the effective date is multiplied by the amount and will result in an exchange rate gain or loss. This amount will be credited to the exchange rate gain/loss account defined for the particular currency for the order. To balance this G/L transaction, the trade creditors account will be debited. 6. Once the variance has been recorded in the exchange rate gain/loss account, the exchange rate on the record will be updated to the exchange rate on the effective date and the local currency amount will be re-calculated. 7. A simple report is generated from the transaction revaluation. This report outputs the invoice number, supplier, the original amount, exchange rate & currency and the new adjusted amount and exchange rate. 8. At the end of the report there is a total displaying the total foreign exchange gain or loss caused by the foreign exchange transaction revaluation. There is also a breakdown of this total showing the before and after values of each of the unrealised gain or loss accounts for each currency. Review:   You can now:  Use Foreign Exchange Transaction Revaluation to revalue transactions at the current exchange rate.