E1: 11: Overview of Account Balance By Currency Valuation Report (R09415)
(Doc ID 664763.1)
Last updated on JULY 19, 2021
JD Edwards EnterpriseOne General Ledger - Version XE and later Information in this document applies to any platform.
If you work with foreign currencies and monetary accounts, you need to periodically revalue your open invoices, open vouchers, and monetary accounts to reflect current exchange rates. Monetary accounts, which are typically bank accounts, are accounts that accept only transactions in a specific currency. Monetary accounts can be bank accounts as well as other accounts such as Accounts Receivable and Accounts Payable trade accounts. You assign a currency to the account master record using Work with Accounts application (P0901). This limits transactions to that specific currency.
The Monetary Account Valuation program also processes bank accounts with blank currency codes in the F0901 table if the accounts fall within the range for AAI item PBCxx. This AAI specifies account ranges for posting by currency. Unlike accounts that are assigned a specific currency, these accounts allow balances in multiple currencies.
You revalue your open invoices, open vouchers, and monetary accounts by calculating unrealized gains and losses. Typically, you will do this during your period-end processing. You can also revalue monetary accounts using Monetary Account Valuation program (R09415) that calculates the current domestic value of a foreign currency amount and creates journal entries for unrealized gains and losses. You can set a processing option in the Monetary Account Valuation program to create journal entries only for unrealized gains or only for unrealized loss or for both unrealized gains and losses.
Assume that the company is located in Great Britain and its base currency is British pounds (GBP). You have to pay several suppliers in Hong Kong dollars (HKD), so you establish a monetary bank account in HKD.
At the end of the month, you have 1,000,000.00 HKD in the bank account in Hong Kong. The account balance in the actual amounts (AA) ledger is 80,268.00 GBP. This account balance is based on the exchange rates of the individual transactions in the AA ledger. You must revalue the foreign bank account balance in the company currency using the exchange rate that is in effect at the end of the month, which is 1 HKD = 0.078996 GBP.
When you run the Monetary Account Valuation program, the system creates a reversing journal entry for an unrealized loss of 1,272.00 GBP. The account balance in the AA ledger is now 78,996.00 GBP. On the first day of the following month, the system reverses the journal entry and you can revalue the account again.
This document is intended for Finance Functional users who will be involved in the multicurrency processing in the General Accounting system.
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