Revaluation -Reconcile AP control account with GL

[thinktank]

Hi ,

In oracle , currency revaluation is done in GL. All the AP invoices accounting entries in foreign currency are converted to GL periodically.

When we revalue foreign currency journals in GL the control account value chances.

Then how to reconcile the AP value against GL to get the accurate respresentation of the balances ?

Thanks

[SIVAKUMAR_G]

Hi

Please note the revalauation entries passed at the end of every month generates only an unrealized gain/loss and this will be reversed at the very beginning of next month

You are right. The GL Control account and AP Liability control account will not mach. But the difference can be identified by running the account analysis report with the source Revaluation for the period
will show the difference lies in that account or even an Account inquiry screen will show the source as Revaluation Journal. so this way the difference if any between GL and AP Liabililty Control account can be reconciled

Hope this helps

Regards
Sivakumar

[thinktank]

Hi ,

Your point is , the difference in the amount can be identified from the 'revaluation' journal while will debit/credit the control account and the gain/loss account. Thanks for the info.

By the way the report you mentioned should have been journals report or account analysis report ? Account analysis report didn't have the parameter for 'source'. Correct me if I am wrong .

Thanks
Sam

[thinktank]

One more clarification.

The balances reflected by AP does not take into account the revalued amount. So how do we get the correct payables balance in subledger taking into consideration the revaluation.

Thanks

[thinktank]

Any thoughts folks ?

Foreign currency journals, revaluation , reconcile with control account ?

[raviteja.manchu]

Hi,

I think u have wrongly understand the revaluation concept.It will just calculate unrealised gain/loss and the entry will be reversed next period.So it will not effe ct any where.

Regards,
Ravi manchu

[thinktank]

Hi,

Can you please help me to understand better.

When we revalue journal entry is generated with unrealized gain/loss. So will the total of liabilityin AP and the total from GL be the same?