Accounts Subject to Revaluation
Revaluation affects the following account types:
• Customer, supplier, and cross-company control accounts
Open items denominated in a foreign currency are subject to revaluation until paid.
Cross-company control accounts with open items denominated in a foreign currency are included in the revaluation when you select the Balance Sheets field in the Revaluation Scope group box of Revaluation Simulate (25.21.1.1) or Revaluation Post (25.21.1.5).
• Customer and supplier payment accounts
The effect of revaluation on customer and supplier payment accounts depends on the payment instrument. If the payment instrument is direct debit (customer accounts only), the foreign currency transactions are performed using the accounting exchange rate for the direct debit date, and revaluation is not required. However, for drafts and post-dated checks denominated in a foreign currency, the payee must wait until the due date to collect the value. The value of the check or draft can vary from the date of issue until the due date, and is subject to revaluation.
• Standard GL accounts
Some standard GL accounts accept transactions in any currency, and are, therefore, subject to revaluation.
• Bank and cash accounts
Bank and cash accounts can be denominated in a non-base currency, which must be expressed in the base currency of the entity.
• Tax accounts
Some tax accounts accept transactions in any currency, and are, therefore, subject to revaluation.
• Inventory and WIP control accounts
You must revalue open balances in Inventory and WIP control accounts relative to the statutory currency to report closing valuations for the balance sheet.
Note: Base currency Inventory and WIP control account balances must be revalued in the books of a consolidation entity if the base currency of a source entity is different than that of the consolidation entity.