Year end preparation - Foreign currency revaluation

You will learn how to run the foreign currency revaluation in Sage 50cloud Pastel.

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

When you process a receipt, the exchange rate will have changed from what it was at the time of processing the Invoice. This will result in a profit or loss in home currency.

The foreign currency revaluation adjusts your home currency value to balance with your foreign currency amount. Sage 50cloud Pastel writes this variation as a 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.

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

 

 CAUTION: Make a backup of your data before you attempt to proceed with the forgein currency revaluation. Restore a backup of before you ran the revaluation if the adjustments are incorrect.  

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

1. Select Process  and then Foreign Currency Revaluation.
2. You can run the revaluation on foreign customers, suppliers, cashbooks or a combination thereof.
3. Make your selection and select Next.
4. Select the correct period for the revaluation.
5. Select Edit Exchange Rates.
6. Select the drop-down menu at the top-left side of the screen.
7. Select each currency.
8. Ensure you set the exchange rate for each currency for the period you run the revaluation in.
9. Select OK.
10. Type in a Starting Reference and click Next.
11. Print the Foreign Currency Variance Report as you cannot print it after finalising the process.
12. This is a preview of the revaluation and the adjustments you want to make.
13. Select Next and then Process.

 CAUTION: We advise that you review the report to ensure the revaluation will run correctly. You will have to restore a backup if the revaluation is incorrect. 

 NOTE: Ensure you run the Foreign Currency Revaluation before running the year end. You cannot run a foreign currency revaluation for last year.