This applies to version 3.3.0 and later versions.
Overview
In most cases, when you enter foreign currency bank transactions, they are valued at the exchange rate on the transaction date. Entities in Poland are required to perform currency revaluation periodically. Foreign currency-denominated bank accounts in Poland must be revalued using the First-In, First-Out (FIFO) method.
The out-of-the-box currency revaluation feature from NetSuite can only revalue transactions based on the current rate at the end of the period. For this reason, Poland Localization contains a feature that allows users to generate revaluation entries from NetSuite based on the FIFO method.
Setting up Polish Bank Accounts for FIFO Revaluation
Przeszacowanie FIFO must be created first in order to generate FIFO revaluation. This record serves as a configuration record and record where all the schedules and entries will be consolidated.
To set up bank accounts for FIFO Revaluation:
Go to Transactions > Poland Localization > Przeszacowanie FIFO > New (using an administrator role).
Under the Primary Information field group, select the following:
Subsidiary *
Bank Account *
Last Revaluation Period — this defaults to the current period. If the last revaluation period was for the previous month, select the previous month. If no revaluation has been done, clear this field.
Under the Default Entry field group, select the following:
FIFO Gain Account * - the account where the gain will be posted.
FIFO Loss Account * - the account where the loss will be posted.
Department — this is the department where the adjustment line will be posted.
Class — this is the class where the adjustment line will be posted.
Location — this is the location where the adjustment line will be posted.
Click the Save button.
Make sure to review the list of FIFO Revaluation before creating the record to avoid duplicates.
NOTE: The previous FIFO Gain (Loss) Account is now deprecated as of version 3.8.0. This field will no longer appear on any existing FIFO Revaluation record. The FIFO Gain Account and FIFO Loss Account fields are added as replacements and would have a blank value for any existing FIFO Revaluation Record.
Customize Sublist View
View any Przeszacowanie FIFO record.
Click the Customize View button under FIFO Revaluation Schedule
Set the following fields under results:
Click the Save button.
Select the created search in the View drop-down.
Generating FIFO Revaluation Schedule and Entries
To generate a revaluation schedule and entries:
Go to Transactions > Poland Localization > Przeszacowanie FIFO.
Click the View link next to the FIFO revaluation record you want to revalue.
Click the Revalue button.
From the pop-up, select the applicable period from the Period drop-down field.
Click the Generate Revaluation button.
Refresh the page until you see the FIFO Revaluation Schedule record under the Schedule subtab that had been added for the selected period.
Make sure that all previous revaluation entries have been approved when valid.
The following records will be created:
FIFO Revaluation Schedule
FIFO Revaluation Entry → Book Value Adjustment
FIFO Revaluation Entry → LILO Value Adjustment
FIFO Revaluation Schedule
Conditions | Revaluation | ||||||
|---|---|---|---|---|---|---|---|
Total Amount | Total Amount (Foreign Currency) | Foreign Currency Balance | Book Value | LILO Value | Gain (Loss) | Book Value Adjustment Entry | LILO Value Adjustment Entry |
Not equal to 0 | Greater than 0 | Total Amount (Foreign Currency) | Total Amount | Search LILO Amount (Debit) (Foreign Currency) → Amount column equivalent | LILO Value | Dr. Gain (Loss) Account | Dr. Bank Account |
Not equal to 0 | Less than 0 | Total Amount (Foreign Currency) | Total Amount | Search LILO Amount (Credit) (Foreign Currency) → Amount column equivalent | LILO Value | Dr. Bank Account | Dr. Gain (Loss) Account |
Not equal to 0 | Equal to 0 | 0 | 0 | 0 | 0 | <none> | <none> |
Equal to 0 | Equal to 0 | 0 | 0 | 0 | 0 | <none> | <none> |
Field Definitions
Period — the period the FIFO revaluation relates.
Foreign Currency Balance — the foreign currency balance as of the period.
Book Value — the base currency balance as of the period.
LILO Value — the calculated “should be” base currency value based on the indirect FIFO method.
Gain (Loss) — LILO value less Book Value
Book Value Adjustment — this entry removes the current base currency balance before adjustment.
LILO Adjustment — this entry replaces the foreign currency balance with the correct value based on FIFO.
The net between Book Value Adjustment Entry and LILO Value Adjustment Entry should be equal to the Gain (Loss).
Rerunning the FIFO Revaluation for the Previously Revalued Period
If there are instances when you have to rerun the FIFO revaluation for a previously run period, you will need to delete the records that were created that need to be replaced.
Before rerunning the FIFO Revaluation:
Delete the FIFO Revaluation Entry for LILO Adjustment.
Delete the FIFO Revaluation Entry for FIFO Adjustment.
Delete the related FIFO Revaluation Schedule.
Edit the Last Revaluation Period and move back to the previous period before the incorrect adjustment.
For questions or concerns, please contact support@staria.com.