Example 2: G/L Postings that Occur from Revaluation of an Open Payable 
Example 2: G/L Postings that Occur from Revaluation of an Open Payable
Below you will find the G/L postings that result after revaluating the payable in Example 1.
Europe |
The invoice was originally posted with an exchange rate of GBP:DEM, 1:3. If the exchange rate at the end of the period is 1:2.97, the revaluation will look as follows: |
North America |
The invoice as originally posted with an exchange rate of CAD:USD, 1:0.7. If the exchange rate at the end of the period is 1:0.67, the revaluation will look as follows: |
European Example: |
US Example - Revaluation using Method I: |
US Example - Revaluation using Method II: |
In British Pound |
In Canadian Dollars |
In Canadian Dollars |
Credit 280010 Foreign Currency Reval. Gains 0.00 |
Credit 280010 Foreign Currency Reval. Gains 0.00 |
Credit 230100 Unrealized Foreign Currency Losses Gains 0.00 |
Debit 161099 Trade Payables - foreign adjustment account 0.00 |
Debit 161099 Trade Payables - foreign adjustment account 0.00 |
Debit 161099 Trade Payables - foreign adjustment account 0.00 |
In DEM |
In US Dollars |
In US Dollars |
Credit 28010 Foreign Currency Reval. Gains 45 |
Credit 280010 Foreign Currency Reval. Gains 33,33 |
Credit 230100 Unrealized Foreign Currency Losses Gains 30 |
Debit 161099 Trade Payables - foreign adjustment account 45 |
Debit 161099 Trade Payables - foreign adjustment account 33,33 |
Debit 161099 Trade Payables - foreign adjustment account 30 |
|
The reversal of this document will take place in the next period | ||
|
In Canadian Dollars | ||
|
Debit 230100 Unrealized Foreign Currency Losses Gains 0.00 | ||
|
Credit 161099 Trade Payables - foreign adjustment account 0.00 | ||
|
In US Dollars | ||
|
Debit 230100 Unrealized Foreign Currency Losses Gains 30 | ||
|
Credit 161099 Trade Payables - foreign adjustment account 30 |