How Revaluation is Calculated and Created - Oracle EBS R12

https://generalledger-gl.blogspot.com/2017/09/how-revaluation-is-calculated-and.html

Revaluation:

Revaluation is a Process of Revaluing Balances that have Transactions dominated in Foreign Currency. It reflects change in Conversion Rate between the Date of Transaction and the Current Market rate of each Currency.

§Income Statement Accounts:

§Are revalued on the basis of the PTD or YTD balances, in accordance with the Income Statement Rule profile option.

§Balance Sheet Accounts:

§Are always revalued on the basis of their YTD balances.

REVALUATION FORMULA

YTD: ACCOUNT AMOUNT = ((begin_balance_dr + period_net_dr - begin_balance_cr - period_net_cr) * revaluation_rate)) LESS (begin_balance_dr_beq + period_net_dr_beq - begin_balance_cr_beq - period_net_cr_beq)

PTD: ACCOUNT AMOUNT = ((period_net_dr - period_net_cr) * revaluation_rate)) LESS (period_net_dr_beq - period_net_cr_beq)

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Lets do Revaluation on only one Account

04-001-000-114121100-000-00-0000-0000

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The easy way of Calculating Revaluation on Particular Account is, take YTD entered and YTD Accounted Balances for the Month on which Revaluation is to be generated. The Exchange Rate which we give on Revaluation screen, System simply Multiply the ENTERED balance of that Account for the Month with Exchange Rate and subtract it from Accounted Balance of that Month.

The Account on which Revaluation is generated 

For Liability Accounts:

If Liability Account is Debit then Unrealized gain. (Here Revalue Amount is Positive)

Liability Account	DR
Unrealized Gain		CR

If Liability Account is Credit then Unrealized Loss. (Here Revalue Amount is Negative)

Unrealized Loss	DR
Liability Account		CR

For Receivables Accounts:

If Receivables Account is Credit then Unrealized Loss. (Here Revalue Amount is Positive)

Unrealized Loss	DR
Receivables Account		CR

If Receivables Account is Debit then Unrealized Gain. (Here Revalue Amount is Negative)

Receivables Account	DR
Unrealized Gain		CR

Unrealized Gain/Loss Account we provide on Revaluation Screen.