Sunday, September 11, 2016

General Ledger Revaluation FAQ

1. Can Revaluation be executed again in a previous period?

Yes, you can run revaluation more than once in a period.
Based on the Revaluation calculation, any additional journal entries posted after the initial Revaluation journal has been posted, will be picked up in the balances that are subsequently revalued in that same period.

The subsequent Revaluation journal entry will then represent the incremental change in the revalued balance, due to the additional journal entries posted after the initial Revaluation.
See 
Note:1064920.6 for more information.

2. Can Revaluation run over again without re-entering account ranges?

Yes, account ranges do not have to be reentered every time you run revaluation.
Set the profile option 'GL: Revaluation AutoQuery Last Run Range' to Yes.The Revalue Balances form will then reuse the account ranges you last used whenyou generated your revaluations.

See 
Note:234370.1 for the new features included in Release 11i.
See 
Note:110488.1 for more information.

3. How are the reversal journals created for the revaluation?

* In Release 10.7 and 11.0:
GL automatically marks all Revaluation journals for reversal in the next accounting period, making them available for generation on the Reverse Journals form.
GL does not automatically reverse revaluations for you, but simply defaults the reversal period as the next accounting period.

* In Release 11.5:
If you want to automatically reverse Revaluations, you must set up AutoReversal criteria for the category Revaluation:
navigation path: Setup : Journal : AutoReverse
Then when you run the program called Program-Automatic Reversal, it will look for all the revaluation journal entries and reverse them and/or post the reversals if you defined the criteria that way.

If you like, you can still manually reverse the journal.
If you do not want them to be automatically reversed by the AutoReverse program, but want them to be available on the Reversal form for generation of the reversal journal, define the Journal Reversal Criteria for the Revaluation Category, but do not check the AutotReverse or AutoPost Reversal checkboxes.

4. How do you specify PTD or YTD Revaluation?

You can specify period-to-date (PTD) or year-to-date (YTD) to revalue income statement accounts using PTD or YTD balances by setting the profile option 'GL: Income Statement Accounts Revaluation Rule'.
You can only review this profile option at the user level. Your System Administrator can set this profile option at the site, application, or responsibility level.

The following values are available:
o PTD: Only PTD balances will be revalued for income statement accounts.
If you select PTD, the Revaluation program only revalues the PTD balances of your income statement accounts but continues to revalue YTD balances for balance sheet accounts.
o YTD: Only YTD balances will be revalued for income statement accounts.
If you specify YTD, then the revaluation program behaves as it did before, revaluing YTD balances for both your income statement and balance sheet accounts.
See 
Note:110422.1 for more information.

5. What formula does YTD and PTD Revaluation use?

Please note that, if you are using the formulas to validate the revaluation journal and this is already posted, then the formulas will not calculate the same as the journal, because the BEQ amounts are already effected by the revaluation journal posting.

* YTD:
ACCOUNT AMOUNT =
((begin_balance_dr + period_net_dr - begin_balance_cr - period_net_cr) * revaluation_rate)
LESS
(begin_balance_dr_beq + period_net_dr_beq - begin_balance_cr_beq - period_net_cr_beq) 

* PTD:
ACCOUNT AMOUNT =
((period_net_dr - period_net_cr) * revaluation_rate))
LESS
(period_net_dr_beq - period_net_cr_beq) 

See 
Note:119697.1 for more information.

6. What scripts can be used to extract data necessary to verify revaluation formula?

Please note that, if the revaluation journal is already posted, the following scripts will not provide the BEQ amounts used in calculations, as they would be already effected by the revaluation journal posting.

* YTD script:
select
CODE_COMBINATION_ID, TRANSLATED_FLAG, CURRENCY_CODE,
BEGIN_BALANCE_DR, BEGIN_BALANCE_CR,
PERIOD_NET_DR, PERIOD_NET_CR,
BEGIN_BALANCE_DR_BEQ, BEGIN_BALANCE_CR_BEQ,
PERIOD_NET_DR_BEQ, PERIOD_NET_CR_BEQ
from GL_BALANCES
where CODE_COMBINATION_ID = &CCID
and SET_OF_BOOKS_ID = &SOB
and PERIOD_NAME = '&PERIOD';

* PTD script:
select
CODE_COMBINATION_ID, TRANSLATED_FLAG, CURRENCY_CODE,
PERIOD_NET_DR_BEQ, PERIOD_NET_CR_BEQ,
PERIOD_NET_DR, PERIOD_NET_CR,
from GL_BALANCES
where CODE_COMBINATION_ID = &CCID
and SET_OF_BOOKS_ID = &SOB
and PERIOD_NAME = '&PERIOD';

See 
Note:119697.1for more information.

7. Why are revaluation journal entries reversed?


Revaluation program assumes that the Revaluation Journals are to be reversed in the next period.
Not doing so would mean the Realised Currency exchange gain or loss would not be recognised in that periods accounts.
Journals created by revaluation are therefore marked available for reversing in the next non-Adjusting period.
In release 11i you can also automatically reverse journals by category, but this is not mandatory.

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