Use the Revaluation window to define, run, update, and delete revaluations for foreign currency-denominated balances. Revaluation launches a process that revalues the ledger currency equivalent balances for the accounts and currencies you select, using the appropriate current market rate for each currency. Resulting gain or loss amounts are posted to the gain/loss or cumulative translation adjustment accounts you specify and balanced by balancing segment values. This process creates a revaluation batch containing separate journal entries for each revalued foreign currency.
If you use Reporting Currencies (journal or subledger level), see: Revaluation.
You can revalue a single account or ranges of accounts, for both income statement and balance sheet accounts. Income statement accounts are revalued on the basis of their period-to-date or year-to-date balances, in accordance with the Income Statement Accounts Revaluation Rule profile option (See: Setting General Ledger Profile Options.). Balance sheet accounts are always revalued on the basis of their year-to-date balances.
When you revalue balances in an average balance ledger, General Ledger only revalues standard balances. When you post the revaluation journal entries to update your standard balances, the system recomputes your average balances automatically.
If you use Reporting Currencies, revaluation journal entries generated and posted in your primary ledger are automatically generated, converted, and posted to each of your reporting currencies.
You can use the secondary tracking segment to track revaluation results using the primary balancing segment and secondary tracking segment. Revaluation gain or loss amounts will be posted to the gain/loss or cumulative translation adjustment account you specify and balanced by each balancing segment value and secondary tracking segment value pair. See: Secondary Segment Tracking.
If you use Reporting Currencies, see:Reporting Currencies User Guide.
Note: Secondary tracking segment support is not available for average daily balance enabled ledgers. To track revaluation using the cost center segment as the secondary tracking segment in an average balance enabled ledger, set the profile option GL Revaluation: Tracking by Cost Center to Yes.
Note: For non-average daily balance ledgers that require cost center tracking for revaluation but not overall secondary segment tracking, set this profile option to Yes. Otherwise, set this profile option to Null.
You can define new revaluations, update existing revaluations and delete revaluations. You can launch any revaluation from the Revaluation window or you can launch saved revaluations and revaluations grouped into Request Sets from the Submit Request window.
To define a new revaluation, complete the fields in the revaluation window and save your work.
To update an existing revaluation, query a revaluation, change the fields in the window as necessary and save your work.
To delete a revaluation, query a revaluation and choose View>Delete from the menu.
To run a revaluation from the Revaluation window, enter a new revaluation or query a revaluation and choose the Revalue button. Complete the Ledger, Period, Effective Date, and Rate Date fields in the Submit Request window.
Note: Ledgers sharing a common chart of accounts can share revaluations.
To run a revaluation or group of revaluations from the Submit Request Window, choose the Revaluation program. In the Parameters window that appears, specify the Revaluation Name or Request Set Name for a group of revaluations, Period, Effective Date, and Rate Date.
You can group revaluations into Request Sets. For example, you can group revaluations into a set to run sequentially or in parallel. You can also schedule revaluations and revaluation sets to run periodically or daily.
To schedule a revaluation or Request Set, run your revaluation or Request set. In the Parameters window choose the Schedule button. If you select Periodically or Specific Days in the Schedule window, you must enable the Increment checkbox. This will increment the Effective Date and Rate Date. The period will increment only at the end of the period. If you do not enable the Increment checkbox, the Effective Date and Rate Date will not change.
See: Oracle E-Business Suite User's Guide for more information on creating Request Sets and for scheduling options.
You can use the profile option, GL Income Statement Accounts Revaluation Rule, to specify whether you want to revalue income statement accounts using period-to-date (PTD) or year-to-date (Y-T-D) balances. If you choose to revalue PTD balances for income statement accounts, the program continues to appropriately revalue YTD balances for balance sheet accounts. Revaluing the PTD balance of your income statement accounts creates weighted average YTD balances using period rates from each corresponding period against the PTD account balance and produces more accurate results in compliance with SFAS #52 standards.
When you select the PTD option for revaluing your income statement accounts, Revaluation produces two separate journal entries; one that revalues your balance sheet accounts and another for your income statement accounts. You will not need to reverse the PTD revaluation journal entry for your income statement accounts in the subsequent period since that revaluation only applied to last period's activity.
Prerequisites
Define accounts for unrealized gains and unrealized losses. You can use the same account for both.
Define a revaluation rate for each currency for each period or date for which you want to run revaluation.
If you use Reporting Currencies, define a Cumulative Translation Adjustment account for your ledger.
Navigate to the Revaluation window.
Enter the Revaluation Name.
If you do not specify a Revaluation Name, revaluation creates the following name: <Revaluation> <Date> <Time>. For example, Revaluation 14-Oct-2002 10:54:26.
(Optional) Enter a Description for your revaluation.
(Optional) Enable AutoPost Revaluation. If enabled, the revaluation journal is automatically posted when the revaluation process completes.
(Optional) Select the Enable Security checkbox to apply Definition Access Set security to your revaluation definition.
Definition Access Sets are an optional security feature that allows you to control access to your General Ledger definitions. For example, you can prevent certain users from viewing, making changes, or using your revaluation definition.
If you do not enable security, all users will be able to use, view, and modify your revaluation definition.
If the Assign Access function is available for your responsibility, the Assign Access button will be enabled once you check the Enable Security check box. Choose the Assign Access button to assign the definition to one or more Definition Access Sets with the desired privileges. For more information, see Definition Access Sets.
If the Assign Access function has been excluded from your responsibility, you will not be able to view the Assign Access button in Revaluation window. You can still secure the revaluation definition by checking the Enable Security check box, but only Definition Access Sets that are AutoAssigned will be automatically assigned to this revaluation definition. See your System Administrator for more information on Function Security.
Choose a Currency Option.
All Currencies: all balances for which the appropriate conversion rates are defined will be revalued.
Single Currency: only balances for the specified currency will be translated. You must choose a currency from the List of Values in the Currency field.
Choose Rate Options.
Daily Rates: Revaluation will use daily rates of the specified Type to revalue balances. You must choose a type from the Type field.
Type: Revaluation will use this type when you select Daily Rates. The List of Values includes all defined conversion rate types, except User, that are not secured with definition access sets or that are assigned to your definition access sets with Use privilege.
One-Time: Revaluation uses the specified rate to revalue balances. You must specify a rate in the Rate field. One-Time is only available if you choose Single Currency in the Currency Options region.
Rate: Revaluation will use this rate when you select One-Time. Enter a rate greater than 0.
Note: If different rates are required for different ranges of accounts, for example spot rates for balance sheet accounts and average rates for income statement accounts, define separate revaluations for each class of accounts, using a different rate type for each.
Enter accounts for the Unrealized Gain and Unrealized Loss accounts. The account can be the same for both fields. The company segment appears blank and is not required.
All debit revaluation adjustments are offset against the unrealized gain account and all credit adjustments are offset against the unrealized loss account. If the same account is specified in both fields, the net of the revaluation adjustments is derived.
Complete the fields in the Revaluation Ranges region. For an example, see: Revaluation Example.
Account Low: specify the low end of the range of accounts you want to revalue.
Account High: specify the high end of the range of accounts you want to revalue.
Note: Expand Parent Company and Expand Natural Account fields are automatically checked when you specify the same parent account in the low and high account ranges. These are display only fields. See: Revaluation Example.
Choose Revalue. Your revaluation is automatically saved and the Submit Request window appears. Complete the following fields:
Ledger/Ledger Set: choose a ledger or ledger set for this revaluation.
If a ledger is selected, the ledger currency cannot be the same as the revalued currency. Revaluation is not generated if the ledger currency is the same as the revalued currency. If a ledger set is selected, revaluation submits a concurrent request for each of the ledgers in the ledger set. If the revalued currency is the same as the ledger currency, revaluation is not generated for that ledger.
If you use reporting currencies (journal or subledger level), you can choose a reporting currency for this field.
Revaluation: the name defaults to the revaluation definition from the Revaluation form.
Period: choose a period from the List of Values. Only open periods appear in the List of Values.
Effective Date: the default effective date that appears is based on the Period specified. You can change this to any date. The default effective date used is based on the following rules as compared against the system date.
Previous Period: the date will default to the last day of that period.
Current Period: the date will default to the current system date.
Future Period: the date will default to the first day of the period.
If you enter an effective date outside the Period, the effective date will be adjusted to match the specified period when you run Revaluation.
Rate Date: the default date that appears is the same as the effective date.
Changes to the Rate Date field have no effect if you previously specified a rate type of Period or One-Time. If you are using daily rates, you can specify any date.
Note: The profile option GL Revaluation: Days to Roll Forward Daily Rates will roll the daily rate forward for revaluation if you do not define a Daily Rate. See: GL Profile Options.Revaluation will only use rates defined for the specified rate date. If a rate is used in this manner, revaluation completes with a warning and the rate is detailed on the Revaluation Execution report.
Choose Submit. General Ledger launches a concurrent process to revalue your account balances. The process names your revaluation batch in the following format: Revalues <Period Name> <Concurrent Request Date> <Unique Identifier Number>; for example, Revalues SEP-02 30-SEP-2002 8884.
Use the Revaluation Execution Report to review the status of your revaluation. General Ledger automatically generates this report when you run Revaluation.
Post the revaluation journal batch if you do not have AutoPost enabled.
Note: Data Access Set security is enforced when revaluation is executed. You must have read and write access to the ledger, or read and write access to the revalued balancing segment values or management segment values. Revaluation only revalues account ranges that it has read and write access to. Accounts combinations with read only access or no access to the balancing segment values or management segment values are ignored.
You must have read and write ledger, balancing segment values or management segment values access to your unrealized gain and loss accounts, otherwise revaluation results in an error.
Note: If you use Reporting Currencies, you must revalue your ledger and each of your reporting currencies (journal or subledger transaction level). Revaluation journal entries generated and posted in your ledger are automatically generated, converted, and posted to each of your reporting currencies.
See: Revaluation.
Note: General Ledger conforms to multiple national accounting standards, including SFAS #52 and IAS 21--regarding translation, remeasurement, revaluation, and reporting of foreign currency-denominated balances.
The following summarizes revaluation results, depending on the currency option you choose from the Revaluation window
Single Currency - Revalues standard balances denominated in the selected currency for the selected period and range of accounts. Currency is revalued using the rate defined in the Revaluation window.
All Currencies - Revalues all standard balances denominated in a currency other than your ledger currency, for the selected period and range of accounts. Currencies are revalued using the rate defined in the Revaluation window.
The tables below illustrate Revaluation results based on:
How you enter the range of accounts to be processed
The parent/child relationships in the range of accounts specified
The examples also illustrate when the Expand Parent Company and Expand Natural Account fields are enabled by the system (when the checks appear in the checkboxes).
Your data access set must provide read and write access to the ledger, or read and write access to the revalued balancing segment values or management segment values.
Assume the following accounts contain foreign currency journal entries. The first segment represents the company balancing segment. The third segment represents the natural account segment.
01.010.1110.0000.100
02.010.1110.0000.100
04.020.1520.0000.000
06.020.3310.0000.000
01.020.2370.0000.000
03.010.2370.0000.000
04.020.2450.0000.000
07.020.3100.0000.000
Parent company value 97 contains child values 01, 02, and 03.
Parent company value 98 contains child values 04, 05, 06, 07, 08, and 09.
Natural Accounts 1000, 2000, and 3000 are parent accounts.
The following revaluation ranges are specified in the Revaluation window:
Specified Revaluation Ranges
| Account Low | Account High | Expand Parent Balancing Segment | Expand Natural Account |
|---|---|---|---|
| 97.000.1000.0000.000 | 97.999.1000.9999.999 | Yes | Yes |
| 98.000.2000.0000.000 | 98.999.2000.9999.999 | Yes | Yes |
| 97.000.3000.0000.000 | 98.000.3000.9999.999 | No | Yes |
Note: A check appears in the Expand Parent Balancing Segment and Expand Natural Account checkboxes when the same values are specified for the Account Low and High. A check will not appear when different parent or natural account ranges are specified for the Account Low and High.
The following accounts will be revalued:
01.010.1110.0000.100
02.010.1110.0000.000
04.020.2450.0000.000
No revaluation results will be created for the 3000 account range because different parent company values are used in the Account Low and Account High ranges. When the low and high parent values are not the same, they are treated as child account ranges.
Assume the following revaluation ranges are specified in the Revaluation window:
Specified Revaluation Ranges, natural account
| Account Low | Account High | Expand Parent Balancing Segment | Expand Natural Account |
|---|---|---|---|
| 01.000.1000.0000.000 | 99.999.2000.9999.999 | No | No |
| 01.000.3000.0000.000 | 99.999.3000.9999.999 | No | Yes |
Note: Note: A check appears in the Expand Parent Balancing Segment and Expand Natural Account checkboxes when the same values are specified for the Account Low and High. A check will not appear when different parent or natural account ranges are specified for the Account Low and High.
The following accounts will be revalued:
01.010.1110.0000.100
02.010.1110.0000.000
04.020.1520.0000.000
06.020.3310.0000.000
07.020.3100.0000.000
No revaluation results will be created for the 2000 parent account because different parent account values were specified in the Account Low and Account High ranges. When the low and high parent values are not the same, they are treated as child account ranges. Only child accounts 1000 through 1999 were considered for revaluation.