Exchange Rate Revaluation

Exchange Rate Revaluation restates the NPR value of balances held in foreign currency, such as a USD receivable or a USD bank account, at the rate on a chosen date, usually the last day of the month or the fiscal year. It fetches each account's balance in the foreign currency and in NPR, applies the new rate, and shows the gain or loss per account. On submit it creates a Journal Entry that moves the difference to Foreign Exchange Gain or Foreign Exchange Loss, so the balance sheet shows the receivable at today's value while the customer still owes the same dollars. Submitted revaluations lock; cancel the Journal Entry to undo.

Gain or loss = Foreign balance x (New rate - Old rate); USD 1,000 x (134.50 - 133.00) = Rs 1,500 gain

1. 01Go to Invoicing > Exchange Rate Revaluation > New and set the Posting Date.
2. 02Click Get Entries; every account with a foreign currency balance is listed with its current and new rate.
3. 03Adjust the New Exchange Rate on any row if the bank rate differs, and review the Gain or Loss column.
4. 04Save and Submit, then click Create Journal Entry.
5. 05Submit the Journal Entry; the entry below posts and the balance is restated.

Create under Accounts > Exchange Rate Revaluation at period end for USD receivables or payables. Submitted revaluations lock.

A USD 1,000 receivable rises from Rs 1,33,000 to Rs 1,34,500: a Rs 1,500 gain.