Foreign Currency Revaluation for Bank Accounts

^{This applies to version 3.3.0 and later versions.}

Overview

In most cases when you enter foreign currency bank transactions it is valued at the exchange rate at the date of the transaction. Entities in Poland are required to perform currency revaluation periodically. Foreign currency-denominated bank accounts in Poland must be revalued using 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 the 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:

1. Go to Transactions > Poland Localization > Przeszacowanie FIFO > New (using an administrator role).

2. 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.

3. Under the Default Entry field group, select the following:

   • Gain (Loss) Account * — this is the account where the gain or 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.

4. Click the Save button.

Generating FIFO Revaluation Schedule and Entries

To generate a revaluation schedule and entries:

1. Go to Transactions > Poland Localization > Przeszacowanie FIFO.

2. Click the View link next to the FIFO revaluation record you want to revalue.

3. Click the Revalue button.

4. From the pop-up, select the applicable period from the Period drop-down field.

5. Click the Generate Revaluation button.

6. Refresh the page until you see the FIFO Revaluation Schedule record under the Schedule subtab that had been added for the selected period.

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:

1. Delete the FIFO Revaluation Entry for LILO Adjustment.

2. Delete the FIFO Revaluation Entry for FIFO Adjustment.

3. Delete the related FIFO Revaluation Schedule.

4. Edit the Last Revaluation Period and move back to the previous period before the incorrect adjustment.