Bank account revaluation Month end

All treasury bank accounts where all the bank account transactions are in Treasury Systems can be reevaluated i Treasury Systems.   

Accounting rules

Create new Accounting rule for Bank balances. Enter the G/L account used for revaluating the bank accounts.  

Check Opening balance in TS Accounting report

Before you run the bank account revaluation the first time you need to make sure the Opening balance in TS accounting report and the Opening balance in the ERP general ledger are the same amounts. 

I.e. run the accounting report in TS for the month you want to do the first bank account revaluation on e.g 2021-04-01 - 2021-04-30. Check the Opening balance on each account and Compare with the Closing balance in ERP e.g.  2021-03-31. 

If the opening balance is not the same you need to enter bank acc adjustments one for each account to adjust the opening balance in TS. Note the opening balance in TS is shown in accounting currency and the amount that needs to be entered on each bank acc adjustement needs to be in each bank accounts original currency.  

Accounting unrealised 

Before the revaluation of bank account can be performed all realised accounting that concerns on the bank account needs to have Status Approved. 

First start by approving and exporting all realised accounting on the bank account. Check bank account reconciliation that everything matches and run a report to check that all bank balances are correct in the system. 

To create the bank account revaluation accounting in month end go to Accounting unrealised, select Bank revaluation.

Click in Selection mark Deal type bank balance and make a selection on the bank accounts that should be reevaluated. e.g Legal entity: Treasury

Entity bank account: choose the specific accounts to be reevaluated

Note, Only bank account in foreign currency will be reevaluated. There is no need to deselect accounts in same currency as the Legal entity. 

Balance date: should be last day of month end

Measuring period start (FDOPM) should be the first day of month or quarter. First day of month after last revaluation.

Measuring period end: will be same as month end balance date and is not possible to change

FX rate start: Select last month ends fx rate table. Usually the last business day of previous month. OR you can select a date code (LDOPM), choose one of these options. 

FX rate end: Select the month end FX rate table in the list OR choose (LDOM) in FX rate end date code. 

Click Run to create the accounting

All created accounting will be shown in Accounting view. 

Note, No reversal accounting will be created for bank account revaluation.  

Note! the bank account revaluation are using midrates. Check that these setting is checked in Settings / Rates  

Bank account reevaluation calculation

Bank account revaluation will reevaluate the Opening balance from Last month end and all transactions during the month/ quarter. 

1. FX rate differences between this month end vs last month end * Opening balance

2. FX rate differences on transactions on the bank account during the month. Difference between FX rate at month end vs transactions FX start rate * cash flow amount on each transaction. 

Accounting view

Check TAB incomplete, if any accounting are in incomplete it probably are missing month end FX rate.

Check the accounting in TAB Preliminary if everything looks fine Approve and Export the Accounting of bank revaluation. 

Note In Global ID the bank account name will be shown instead of the Deal ID.