Foreign-currency revaluation
Restate open foreign-currency invoices, bills and bank balances at the month-end closing rate, and book the unrealised exchange gain or loss.
Verasol keeps foreign-currency invoices, bills and bank balances in your books in dirhams, at the rate each was booked at. At the month-end, a revaluation restates what is still open at the closing rate and books the difference as an unrealised exchange gain or loss. Closing a month does this for you; the FX Revaluation screen lets you review it document by document and post it yourself.
What is revalued#
| Part of the screen | What it restates | After the month-end |
|---|---|---|
| Customer balances (receivables) | Open invoices, credit notes and payments on account in a foreign currency | Reversed the next day |
| Supplier balances (payables) | Open bills, debit notes and advances in a foreign currency | Reversed the next day |
| Foreign-currency bank accounts | The balance of each bank account in a foreign currency | Not reversed |
Review the revaluation#
Open FX Revaluation in the main menu. The screen works in three numbered steps.
- Choose the month-end, or Another date to enter a different day.
- Check the closing rate of each currency. Unless you type one, Verasol uses the rate an earlier revaluation of the same date used, or else the UAE Central Bank rate of the date (or a labelled market rate when the Central Bank publishes none). The line under each rate says where it comes from. A rate you type must be within 10% of the published rate. A currency pegged to the dirham, such as the US dollar, shows Fixed peg to the dirham and has no rate to enter. When no rate is known for the date, the tables show Rate needed until you enter one.
- Read the tables. Each document is carried at its own rate: each row shows the Open amount, its value In the books (AED) and At closing rate (AED), and the Gain / (loss).
1 The month-end, 2 a closing rate you entered, 3 the gain or loss of each document, 4 Post revaluation.
The Gain / (loss) column shows the effect on your profit, with losses in brackets. Here, the invoice of EUR 15,000.00 booked at 4.257877 is worth AED 8.82 more at the closing rate of 4.258465; the US dollar documents are at the peg and show AED 0.00.
Post the revaluation#
Step 3 sums up the Revaluation at the closing rates and what is To post now. To book it:
- Click Post revaluation.
- The Post the revaluation? window repeats the date, the amount and the date of the reversal. Click Post revaluation to book it, or Cancel.
Verasol posts one journal entry on the month-end date and its reversal on the next day; click either number in step 3 to open it in Journal Entries. Post revaluation is greyed out, with the reason next to it, when the date has not passed, a rate is missing, there is nothing to revalue, or the date is already booked and still right.
If you post a date again with another rate, or after the open documents at that date changed, step 3 shows what is Already booked for this date and Verasol posts only the difference, as a further entry that is also reversed the next day. When an invoice, bill or payment dated on or before a revaluation date is cancelled or changed later while that month is open, Verasol books that difference for you. Earlier entries are never edited or deleted.
What Verasol books#
On 30 June 2026 the documentation company had an open invoice of EUR 8,400.00, booked at 4.230169 (AED 35,533.42). At the closing rate of 4.232283 it was worth AED 35,551.18, so AED 17.76 more. Verasol posted this entry, and its reversal the next day:
| Date | Account | Debit | Credit |
|---|---|---|---|
| 30 June 2026 | 1100 Accounts Receivable | 17.76 | |
| 30 June 2026 | 4300 Foreign Exchange Gain | 17.76 | |
| 1 July 2026 | 4300 Foreign Exchange Gain | 17.76 | |
| 1 July 2026 | 1100 Accounts Receivable | 17.76 |
In general, the month-end entry is one of these, reversed the next day:
| The open balance at the closing rate | Debit | Credit |
|---|---|---|
| Customer balances worth more | Accounts Receivable | Exchange gain |
| Customer balances worth less | Exchange loss | Accounts Receivable |
| Supplier balances owed more | Exchange loss | Accounts Payable |
| Supplier balances owed less | Accounts Payable | Exchange gain |
The gain and loss go to the accounts set as Exchange gains and Exchange losses on the Default accounts tab of the Chart of Accounts (for example 4300 Foreign Exchange Gain and 6950 Foreign Exchange Loss).
Why the reversal: the invoice or bill stays in your books at its own rate, and when it is paid Verasol books the realised exchange difference against that rate. Reversing the unrealised amount at the start of the next month means it is never counted twice.
Revalue a foreign-currency bank account#
Bank balances are revalued per account, in the Foreign-currency bank accounts section. Each account shows its balance at the date, its value In the books and at the closing rate, what there is To book, and when it was last revalued.
1 What is already booked for the date and what is still to post, 2 Revalue for one bank account, 3 Go to Period Closing.
- Click Revalue on the bank account.
- The Revalue this bank account? window shows the rate it will use: the rate you typed in step 2; otherwise the rate already used for that date, or the published rate. If no published rate can check a rate you typed, tick the box that confirms you have checked it.
- Click Revalue.
Verasol debits the bank and credits the exchange gain account, or debits the exchange loss account and credits the bank, in dirhams only. Unlike the invoices and bills, this entry is not reversed: each revaluation brings the bank's AED value to its balance at the closing rate, so the next one books only the change. Revaluing the same date again at another rate reverses that date's earlier revaluation and books the new one. For example, on 30 June 2026 the USD Current Account (Emirates NBD), USD 60,842.67 at 3.6725, went from AED 223,444.70 to AED 223,444.71: a debit of AED 0.01 on the bank and a credit to 4300 Foreign Exchange Gain. On a pegged currency, only rounding remains.
The balance in the bank's own currency does not change, so your bank reconciliations are not affected.
Revaluation when you close a month#
You do not have to revalue before closing. When you close a month on Period Closing, Verasol revalues every foreign-currency bank account and the open invoices and bills at the month-end, then closes it.
- The closing window's Foreign-currency revaluation item shows the closing rates, the bank accounts and the open invoices and bills, with the gain or loss to book. You can type your own rate there; if a rate is missing, the month can't be closed until you enter it.
- Review the revaluation in detail opens this screen at the same date.
- What you posted here first is counted, with its rate: if it is still right, nothing is booked again; otherwise only the difference is booked.
Who can do this#
Reviewing needs Accounting: journal (view) or Reports and dashboard (view). Posting, including revaluing a bank account, needs Accounting: post and reverse journal entries; without it the posting buttons are hidden.