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16. Currency Revaluation, Year-end Roll
1) Currency Revaluation
2) Year-end Roll
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16.1 Currency Revaluation
When foriegn currency receivables/payables are entered into the ledger; good accounting practise dictates that as exchanges rates move with time, these foreign currency denominated amounts need to be revalued using the latest exchange rate(s). This is in order for the ledger to show the true current value of any such receivable/payable.
Being a multi-currency application, Acceptum provides this functionality, on accounts that are marked as requiring currency revaluatiuon - see Setup|Accounts on how to set an account for currency revaluation.
Use menu option Ledger|Currency Revaluation to open the Currency Revaluation window.
Set the 'Revaluation Date' to determine the exchange rate to be used for each foreign currency. The rate applying at the set date is obtained by clicking 'Get Exchange Rates' to show the rates in the window.
Note - rates cannot be changed here, but are set under Setup|Currencies.
Once the exchange rates have been set correctly, click  to produce the necessary journal to revalue the currencies.
Any adjustment value is posted to the 'Currency Revaluation Account', which is set in the Company record.
Review the resulting journal via menu option Ledger|Edit Posted Journals.
This 'Revaluation Provision' can be reversed in the following period - the recommended route; or left as is, when it will effect the value of any subsequent 'Revaluation Provision'.
'Revaluation Provision' reversal is recommended, as the provision and its reversal entries can be offset against each other by being marked as 'Cleared' on customer and supplier accounts.
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16.2 Year-end Roll
At the end of a financial year, the account balances on Balance Sheet accounts need to be transfered as opening balances to the new financial year, whilst Profit and Loss account balances are transferred to Retained Earnings. That transfer is done via the menu option Ledger|Year-end Roll, while in the old year.
It can be performed many times for a specific year without any repercussions; as no journals are created in the old year and the new financial year 'Opening balance' journal is deleted and re-created.
'Opening balance' journals in the new financial year are given the journal number 0.
Before performing this feature, check that all accounts bear a Trail Balance Structure number and that the Start and End Balance Sheet and Profit & Loss Trial Balance Numbers have been completed for the company. Otherwise, undefined results will occur.
Individual 'Opening balance' journal lines are created for Balance Sheet Accounts, per:
- Account
- Unit of Measure
- Currency, when an account is revalued for foreign currency balances
Set the Trial Balance Numbers to determine the Balance Sheet and Profit and Loss ranges.
Enter the first day of the new financial year as 'Transaction date', this date is used in the 'Open Balance' journal.
Set the 'Retained Earnings Account' to receive the net balance of all Profit and Loss accounts.
Click when the above attributes are complete and correct. This performs the year-end roll process.
When a Year-end Roll has been completed, do not assume that the old fiscal year can be deleted from the application. When an account is marked for 'Open Item Clearing', all prior years; in which a posted Ledger line item remains 'Open'; must be retained on the application. Only when ALL items posted in the fiscal year have been 'Cleared', can the Company/Year data be Archived and removed from the application.
Use menu options Ledger|Reporting|All Journals then File|Print to open the Ledger Lines report dialog, select the report 'Ledger Journals' to obtain a printed report of the 'Opening balance' journal.
Note: you must switch Company/Financial Year via File|Open Company to view the 'Opening balance' journal in the new financial year.
Error messages may be given if the accounts do not net to zero or other errors are encountered.
On completion of the Year-end Roll users are advised to change the Company record attribute:
- End of current fiscal year
to ensure that the right year-end date is used by the application.
Should you wish to re-start your document numbering sequences per fiscal year, change the Company record attributes:
- Next Journal Number
- Next Customer Document Number
- Next Purchase Order Number
- Next Supplier Invoice Number
- Next Sale or Return Number
Use the Companies general Note attribute to record prior year document number settings.
Use this information, if additional transactions are required in a prior year, by the following process:
- save the current year Next Number settings in the general Note attribute,
- re-set the Next Number attributes back to prior year values,
- add and post your new document(s),
- redo Year-end Roll to obtain new 'Opening balances',
- re-set the Next Number settings back to current year settings.
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