De-mystifying Currency Revaluation in GP
Summary
Multi-currency accounting can send shivers of fear and confusion through the spines of financial professionals (and some ERP consultants). However, with the power of Microsoft Dynamics GP and the industry-leading knowledge and expertise of Boyer & Associates, currency revaluation can be a stress-free part of your month-end close process. In accordance with GAAP standards, the month-end Euro balance of the receivables account must be revalued at the month-end spot rate. If you selected to post the results, the revaluation process creates a General Ledger journal entry to record the exchange gain or loss. In a future post we’ll look at what happens when the overseas customer submits a Euro payment and how Dynamics GP accounts for the resulting “realized” exchange gain or loss.
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