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Year End Preparation - How do I run the Foreign Currency Revaluation?

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In this article, you will learn how to run the Foreign Currency Revaluation in Sage 50cloud Pastel Accounting.


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. You can run the revaluation procedure whenever you wish to, and as often as you wish to.



NOTE: You must ensure the Foreign Currency Revaluation is run for this year before processing the Year End. You cannot run a Foreign Currency Revaluation for last year.


CAUTION: Use caution when working with the below product functionality. Always create a backup of your data before proceeding with advanced solutions. If necessary, seek the assistance of a qualified Sage business partner, network administrator, or Sage customer support analyst.

This option is only available in Sage 50c Pastel Partner if you have the Multi Currency add-on module activated.

  1. Select Process > Foreign Currency Revaluation
  2. You can run the revaluation on foreign customers, suppliers, cashbooks or a combination thereof, make your selection and select Next
  3. Select the correct period for the revaluation
  4. Select Edit Exchange Rates
  5. Select the drop down menu at the top left side of the screen. Select each currency and make sure the exchange rate for each currency is setup for the period the revaluation is run for 
  6. Select OK when completed
  7. Type in a Starting Reference that will be linked to the transactions when the revaluation is run
  8. Select Next to proceed
  9. The Foreign Currency Variance Report can be printed before the process is finalised. This is a preview of the revaluation and the adjustments that will be made

    CAUTION: It is recommended that the report is looked at to ensure the revaluation will run correctly. Once the revaluation is run, it cannot be reversed except by restoring a backup.

  10. Select Next. The confirmation screen will appear. Ensure the information displayed is correct, select Process to complete the revaluation