Revaluation Concept in Oracle Apps

It is used to identify unrealized gain/loss amount which occurred due to foreign exchange rate
fluctuations. The difference in revaluation will be transferred to unrealized gain/loss a/c. We run
revaluation in two modules- i.e., GL & FA. In GL we run the revaluation to know the current asset
& liabilities due to fluctuation in the currencies and In assets we run the revaluation to revalue the
assets.

Note: Revaluation can be done only before making the payment or before receiving the amount in
GL.

Setup Steps:
1. Define “Unrealized Gain (revenue) a/c & Unrealized Loss (Expenses) a/c” at account
segment level.
Note: If required assign profile option “GL: Revaluation: Validate Gain & Loss A/c” at
responsibility Level.
2. Define exchange rate type
3. Define Exchange rate.
4. Enter foreign currency journal & post it.
Note: If you want to see the changes you change the exchange rate.
5. Run Revaluation.
6. Query revaluation journal and post it.

Now, Let see how to configure revaluation concept.

Step 1: Define Unrealized Gain A/c (Qualifier as: Yes, Yes, Revenue, No, No) and Unrealized
Loss A/c (Qualifier as: Yes, Yes, Expenses, No, No) at account segment Level.
Navigation: Setup  Financials  Flex fields  Key  Values.
Step 2: Define Exchange Rate Type
Navigation: Setup  Currency  Rate  Type
Click on New and add “Rate Type” and “Description”.

Step 3: Define Exchange Rates

Navigation: Setup  Currency  Rate  Daily
Click on “Enter by Date Range” button

Say “Apply”.
Step 4: For testing Revaluation Concept, Ensure one foreign currency journal exists.
Navigation: Journal  Enter
Step 5: Run Revaluation
Navigation: Currency  Revaluation
Enter name and description for revaluation
Currency Options: Choose single currency & USD
Rate Options: Choose Daily Rates & Exchange rate type
Choose Unrealized gain & loss accounts
Choose revaluation ranges

Say " Revalue"

Submit request window will automatically open with program as “Program – Revalue balances”
Fill all parameter details and submit the request.
Click on View  Request and ensure program completed normal.

Say “View Output”

Step 6: Now query Revaluation Journal and post it.
Navigation: Journal  Enter

Now see the change and post it