Exchange rates between currencies fluctuate all the time. Therefore, transactions processed now, at the current exchange rate, will not be worth the same in home currency at some future date.

When you process a receipt, the exchange rate might have changed from what it was at the time of processing the Invoice. This will result in a profit or loss in home currency, depending on the exchange rate. The foreign currency revaluation will adjust the home currency value to be in line with the foreign currency amount, and write the profit or loss to the relevant General Ledger account.

Unpaid balances in foreign customer and supplier accounts will also vary from when you originally processed the transactions. You use this function to update these unpaid balances.

The system can analyse these differences, create adjusting journals, and show the amount gained or lost, per currency if necessary. 

This assistant will also revalue all outstanding foreign currency to the new exchange rate that you set, this should be done before any Financial Reports are printed.

[BCB:1:Backup warning:ECB]

Refer to article How do I process a backup Sage 50cloud Pastel Accounting?.

Please follow steps as below to process Foreign Currency Revaluation.

• Select Process > Foreign Currency Revaluation
• You will be able to revalue the foreign bank, customer or supplier accounts. You will not be able to revalue individual bank, customer or supplier accounts, this assistant will revalue all foreign accounts.
• Once your selection has been made select Next
• Select Edit Exchange Rates, select the currency you wish to run the revaluation for, enter the exchange rate on date of revaluation
• Select OK once all the changes have been made
• Insert a reference for the transaction that will be created when the revaluation is ran. Sage Pastel Accounting will automatically increment the reference numbers for the transactions
• Select Next
• Select Print Report, this is the revaluation report and is very important for audit purposes
• Select Process to complete the process

 Click Here to watch a video on Processing Currency Revaluation

CAUTION: The Foreign Currency Revaluation: can only be run for the current financial year. Ensure the revaluation is done before the Year-End is completed.