Set Up AP Revaluation Accounts
Foreign exchange (FX) revaluation is a necessary process for organizations that operate with multiple currencies. It ensures that accounts payable balances reflect the current value of foreign currency transactions, including open vendor bills.
Complete the following steps to enable and configure multi-currency for accounts payable.
Enable Multi-Currency
Before configuring FX revaluation accounts, you must enable multi-currency support in your organization settings.
Click the company icon in the top-right corner of the screen.
Go to Organization Settings.
Select Accounting.
Enable Multi-Currency.
(Optional) Set AP Revaluation Start Date
If you do not want to record revaluation before a specific date, you can define a start date.
When a start date is set:
Bills dated before this date will not record unrealized gains or losses.
Realized gains or losses will still be recorded upon payment.
Configure FX Revaluation Accounts
Under the Multi-Currency section, set the following fields:
Realized FX Gain/Loss Account Select an account to record gains or losses when transactions are settled.
Unrealized FX Gain/Loss Account Select an account to record revaluation adjustments for open bills.
AP Revaluation Account Select an account to track revaluation adjustments for accounts payable.
Note The realized and unrealized accounts can be the same, but it is recommended to use separate accounts for easier review of journal entries. The AP Revaluation Account can be the same as your standard AP account, but using a separate account is recommended for better visibility.
Save Changes
Click Save Changes to apply your configuration.
See Also
To continue working with accounts payable in foreign currencies, see:
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