CFP Data processing - Revaluation and devaluation

Through this process, the system performs a valuation of the receivables and payables at the final FX rate for every period, with the FX rate differences being booked.

The system only processes balance sheet accounts and standard-type accounts that have the “End-of-period FX rate evaluation” option active.

At every period end, with reference to the cumulative balance of the account, it calculates the countervalue “to be set” by multiplying the cumulative currency amount by the period FX rate. The difference between the countervalue “to be set” and the account’s cumulative countervalue is the cumulative FX rate difference for that account. It also calculates the monthly FX rate difference (this is the difference between one period’s cumulative FX rate difference and that of the previous period).

The system creates the following events, with origin equal to CFP_FINAL_EXCHRATE_EVAL - CFP - Evaluation at final FX rate:

  • entry of the FX rate difference on the P&L - event “$GBL” - Accounting, with the following characteristics:
  • account equal to the “debit FX rate difference account for revaluations” account or the “credit FX rate difference account for revaluations”, depending on the balance sheet being revalued if it is present as an “exception”, and otherwise on the “debit FX rate difference account for revaluations” or “credit FX rate difference account for revaluations” fields defined, for the data-processing process to be performed, in the general data processing rules
  • countervalue equal to the FX rate difference amount
  • entry of the revaluation on a balance sheet account - event “$GBL” - Accounting, with the following characteristics:
  • account equal to a variation account among the “child” variations of the balance sheet account being revalued with the “FX rate difference” field defined as “Debit” or “Credit” or as “Debit/Credit”
  • countervalue equal to the FX rate difference amount

Details of signs:

  • a commercial event with the CREDIT account (changing the sign) is created if the monthly FX rate difference obtained is positive, and with the DEBIT account if it is negative
  • if the monthly FX rate difference obtained is positive, a balance sheet event is created which uses an account the variation of which has the “FX rate difference” field equal to “Debit” or “Debit/Credit”, if it is negative, the event uses an account the variation of which has the “FX rate difference” field equal to “Credit” or “Debit/Credit”.