Example 3:G/L Postings that Occur when the Invoice is Revaluated Again in the Next Period 
Example 3:G/L Postings that Occur when the Invoice is Revaluated Again in the Next Period
Below you will find the G/L postings that result after a revaluation is made a second time for an item that is still open in the next accounting period.
Europe |
The invoice was originally posted with an exchange rate of GBP:DEM, 1:3. It was evaluated at the end of the period at a rate of 1:2,97. The assumption is that the invoice is not paid before the end of the second period - so it is revalued a second time. At the end of the second period, the exchange rate has dropped to 1:2,95 but only the difference to the first reevaluation is posted.. |
North America |
The invoice as originally posted with an exchange rate of CAD:USD, 1:0,7. It was evaluated at the end of the period at a rate of 1:0,67 with different results for revaluation methods I and II. The assumption is that the invoice is not paid before the end of the second period - so it is revalued a second time. At the end of the second period, the exchange rate has dropped to 1:0,66. |
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 160099 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 30 |
Credit 280010 Foreign Currency Reval. Gains 40 |
Credit 230100 Unrealized Foreign Currency Losses Gains 10 |
Dedit 160099 Trade Payables - foreign adjustment account c 30 |
Dedit 161099 Trade Payables - foreign adjustment account 40 |
Debit 161099 Trade Payables - foreign adjustment account 10 |
|
The reversal of this document | ||
|
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 40 | ||
|
Credit 161099 Trade Payables - foreign adjustment account 40 |