Hello,
I was watching the Revaluation videos again, and I have just 1 question.
The video states that you should defined your Revaluation Set to encompass some AP or AR accounts that need to be revalued due to Foreign currency transactions.

Why NOT run the Revaluation for ALL accounts ?
Someone could have entered a journal amount for an account that you might have missed in your Revaluation Set. Would this work ? Assuming you have 1000 accounts or more...
Would this make sense to do it this way, and if NOT why not ?

Thank-you

The concept of Revaluation in Oracle Accounts Payable and Oracle Accounts Receivable modules is limited to only Payables accounts (for example, account 2000) and Receivables Accounts (for example, account 11000), nothing more, nothing less.

If your company buys a washing up liquid for washing your office kitchen tea cups, this expense amount for this transaction would not go up or down, in the company's book.

However, if your company buys building used for it office, the value of this could go up or down over a time. Therefore, there is a need for revaluing this Fixed Asset. This can of Revaluation is handled in Oracle Fixed Asset module, not through Payables or Receivables modules.

I hope Hasan would correct me, if my understanding about the Revaluation concept as a whole, is wrong.

Cheers,
Gavrobere

In GL, you only revalue foreign currency balances that are not settled yet.
The final exchange rate gain/loss is calculated when the balance is settled.
For example when the invoice is paid in AP and the receipt is entered in AR.
You run revaluation to temporarily produce exchange rate gain/loss entry so that income statement report displays true income. You immediately reverse these entries as of the beginning of next period.
You do not revalue all foreign currency accounts because they do not affect exchange rate gain/loss.
For example consider following transaction:

DEBIT: OFFICE SUPPLIES $120 USD ($110 USD)
CREDIT: CASH $120 USD ($110 USD)

In next iteration of AP videos, I am planning to upload videos that would show the AP-GL reconciliation process.

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