This topic provides information on the foreign currency revaluation of the system account.

The Operational Ledger revalues the foreign currency of system accounts balances, that are:

• Account Revaluation Process

  Account revaluation adjusts the local currency (LCY) equivalent of foreign currency (FCY) account balances to align with market rates. Each FCY account displays the current FCY balance along with its equivalent in LCY, calculated from all recorded transactions.

• End-of-Day Revaluation

  At the end of the day, a batch program can be executed to update the balances of system account. This process calculates any profit or loss from revaluation and records the results to specified accounts.

• Profit and Loss Booking

  The system categorizes and posts revaluation outcomes as follows:

  • Profit GL

    If the revaluation results is a profit, the system credits the profit amount to the specified Profit GL. If revaluation splitting is enabled, the system differentiates between:

    • Trading Profit/Loss

      Gains or losses from revaluing FCY transactions posted on the current day.

    • Revaluation Profit/Loss

      Gains or losses from revaluing opening FCY balances, excluding the current day’s turnover.

    • Trading Profit Account

      When revaluation splitting is enabled, trading profits are posted to this specified account, and the system provides a corresponding description.

  • Loss GL

    If the revaluation results is a loss, the system debits the loss amount to the specified Loss GL. When revaluation splitting is applied, the revaluation loss (not including trading loss) is posted to this account.

    • Trading Loss Account

      If revaluation splitting is enabled, trading losses are posted to this specified account, with the system displaying its corresponding description.