Revaluation in Oracle Fusion
Hi Friends , We are going to discuss the Revaluation process in Oracle Fusion. Revaluation process is very important for the organization if that organization is doing the foreign currency transactions. Revaluation activity is related to the month end activity which business do during the month end or accounting period end and in the beginning of the moth or new accounting period. Here below is the more detail about Revaluation in Oracle Fusion.
Purpose of Revaluation in Oracle Fusion
We use Revaluation for the Foreign currency
amounts. This helps to
evaluate the exact amount of Liability and revenue for the period During Month
End or unrealized gain/loss amount which occurred due to foreign exchange rate
fluctuations. Revaluation happens on the account level. We can choose for which account we need to
run the Revaluation. For Example, My Total Liability as per my GL account is 2 Lakh in
which many of the invoices are foreign
currency. So system has fetch the exchange rate as per the Invoice Date
and calculate the Liability but in actual this Liability is Wrong because if
now I have to pay this Invoice I have to pay with the Current Exchange rate so that is
the same thing Revaluation process does in the General Leger In which It create
the Revaluation Journal based on the Current Exchange rate for the difference
of the exchange rate price and evaluate the final Profit and Loss so by this
way , we do have right figures in the hand about liability and the revenue .
Revaluation only do for GL accounts. Revaluation process
runs during the period end. This process creates the Journal Entry that either
Increase or decrease the functional currency amount for that GL account. In the Revolution
Process also, this unrealized gain/loss Journal will be auto revered during the
beginning of the next period. So, this makes the revaluation process completes.
Setup of Revaluation in Oracle Fusion
Step 1:-
To configure revolutions, we
need to access the task ‘Manage Revaluations’.
To
Access any Task, we can also directly go to the Setup and Maintenance as below
and click on the Task List as highlighted below.
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| Revaluation in Oracle Fusion |
Step2:-
In
Search, Enter the Task name ‘Manage Revaluations’. Click on the Results and it
will drag you to Revaluations page.
So,
to access any task we have multiple ways, either go through Implementation
project or directly go to Search Option and search that task.
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| Revaluation in Oracle Fusion |
Step 3:-
Click on the ‘+’ icon to
create the Revaluation configurations in Oracle fusion. For Existing Revaluations,
we can search directly in this page.
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| Revaluation in Oracle Fusion |
Step 4:-
Creating Revaluation Setup
for my Assets and Liability Account
Name: ABC Revaluation Process
Chart of Account: ABC Corp
Accounting Flexfield
Currency: USD (For Which
currency we want to do this Revaluation Process)
Conversion Rate Type: ABC
Exch Rates (Need to mention the Exchange Rate Type , because revelation will take
the exchange rate from this Rate type while doing Revaluation in Month end.
Save First and Then click on
the Revaluation account and select the Account filter.
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| Revaluation in Oracle Fusion |
Step 5:-
Here in the Account filter,
based on the Chart of Account segment account combination we can fix those
accounts for which we want to the Revaluation.
In this case , I’m using only
the Natural Account filter to set the Natural Account for which this
revaluation will work.
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| Revaluation in Oracle Fusion |
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| Revaluation in Oracle Fusion |
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