For Ex Revaluation Transactions

[centuryaccounts]

Hello

I am currently preparing our Sage Accounts for year end 2023.

We use Foreign Currency and whilst reconciling my aged debtors and creditors I have found a few nominal values on my reports relating to Revaluations.

From what I can see, when the payments have been allocated to the invoices, the date was not changed to one in 2023 so the Revals have been dated in 2024, therefore throwing my Aged Creditors report out.

When the invoice has been paid using a bank transaction, I have been deleting, reposting and reallocating to successfully correct this.

However, when they Invoice has been cleared using a Credit Note, this does not seem to correct the issue.

What I am missing/not understanding?

Please Help!

Thank you!!!

[brucedenney]

The profit or loss on exchange happens when the bank transaction happens.

So if you sel1 100EUR in Jan and pet paid 100EUR in Feb then the profit and loss transaction will happen in Feb, it can not happen on any other date.

As the transaction is paid, it will have no impact on Aged Debtors/Creditors.

Not sure what the issue is.

Perhaps a clear example might help.

[centuryaccounts]

Hi

Sorry, I'm not being very clear.

For example:

PA 20/07/2023 Deposit Payment on Account $1,000.00 ex rate 1.15
PA 20/08/2023 Balance Payment on Account $3,000.00 ex rate 1.17
PI 12/12/2023 Invoice Invoice for Services $4,000.00 ex rate 1.17

But then allocate in the Supplier Payment window with the date of 12/01/2024 you get

PI 12/01/2024 Currency Reval 14.87

So when an Aged Creditors Report is run to 31/12/2023 it will so that there is still an outstanding amount rather than showing as completely cleared.

I know I can delete the PA transactions and repost and reallocate, changing the date in the Supplier Payment window to 31/12/2023 and this fixes the problem.

However, if, rather than a Payment on Account, one of them is a Purchase Credit note, that has been VAT reconciled, I can't get rid of the incorrectly dated Reval.

Does that make more sense?

Thank you again for you help.

[brucedenney]

"So when an Aged Creditors Report is run to 31/12/2023 it will so that there is still an outstanding amount rather than showing as completely cleared."

When the transactions get matched, they are no longer outstanding so there is nothing to show on the aged report.

If you have not matched the payments on account against the invoice then they are all outstanding and all still show.

The solution is to match the payment on accounts to the invoice. You need to do this as unless the transactions are paid, they will remain outstanding forever and your audit trail will grow to an unmanageable size and never clear properly.

[centuryaccounts]

Hello again,

The transactions have been allocated in full, BUT because the date of allocation is after the Year End date, the REVAL transaction is causing the Purchase Invoice to have a balance outstanding.

I have attached Reports to show an example of the transactions

Demo Data - Audit Trail Detailed.pdf

together with the Aged Creditors Report.

Demo Data - Aged Creditors.pdf

[brucedenney]

The solution is to match the transactions on the same date, then you don't get the revaluation happening on a different date.

[centuryaccounts]

Hello

Yes, absolutely, thank you!

In the event that a PC was allocated error AFTER the Year End date. How can this been corrected?

Deleting the PC, reposting it and allocating before the Year End Date, as it should have been, doesn't seem to remove the REVAL transaction?

[brucedenney]

I think you would need to redate the reval transaction by editing the transaction.

[centuryaccounts]

You can't edit a date on a foreign transaction.

[brucedenney]

You will need to delete the revalued invoices/Credits then re-enter them and rematch them but on the correct date.

Deleting the revalued transaction also deletes the revaluation transaction.