Use bank foreign currency revaluation enhancements
| Enabled for | Public preview | General availability |
|---|---|---|
| Users by admins, makers, or analysts | - | 
Oct 2, 2023 |
Business value
The bank foreign currency revaluation (bank FCR) will be enhanced in two ways. First, we will allow an organization to define whether to use all or no financial dimensions when calculating the unrealized gain or loss. This is one of the top 10 feature requests for the Cash and bank management module. This will reduce the number of lines included in the accounting entries for each bank FCR.
Second, the calculation of the unrealized gain or loss will change. The change will allow organizations to give a clear definition of the calculation to their auditors, while also preventing the scenario for some organizations where large amounts were posted to different dimensions as the result of all debits for cash being posted to one dimension but the credits being posted to a different dimension. This will also ensure that a gain or loss is calculated correctly for periods where no new transactions are posted for a specific set of dimensions.
Feature details
The new feature allows an organization to select either All or None for which dimensions should be used for calculating the unrealized gain or loss. Because the bank FCR calculates the gain/loss on the total of the bank account, and not per transaction like AR and AP, the choice of using All or None is defined at a setup level. After selecting the dimension level and completing the change, a cleanup process must be run to reverse the gain or loss balance from the previous FCRs.
The cleanup process can also be run if the dimension setting isn’t changed but instead your organization had large amounts distributed to different dimension values due to cash being debited to one dimension value but credited to a different dimension value. The process will reverse the large amounts, bringing the gain or loss to zero. It's important to note that this cleanup process does not reverse any accounting entries from previous revaluations. It simply gets the gain or loss amount to zero, giving a clean slate for the calculation when the next bank FCR is run.
The second change is to the calculation method for the revaluation. The calculation will now determine the balance of the bank account, either with all financial dimensions or no financial dimensions, and then calculate the unrealized gain or loss per ledger account. Previously, the calculation would determine the total gain or loss and then allocate the amount to each set of financial dimensions.