Exchange Rate Revaluation Entry

How to Pass Exchange Rate Revaluation Entry as of 31st March 2022?

Let us understand this by taking an example
Customer - Vipra International Private Limited
Invoice Date - 12-Dec-2021
Invoice Amount (In USD) - 2000 USD
Ex rate - 78.56
Invoice Amount (In INR) -  1,57,120
Ex rate as on 31st March - 77.04
Refer Below Image :
In the year end if the remittance is not received against customer you need to book Forex gain/loss in the financial year end on 31st March’2022.
In this case we have not received any remittance from Customer - Vipra international as on 31st March’2022. For closing our books as on 31st march’2022. we need to book gain loss against the invoice no: OFLOFDEL21120001.
For booking Gain/Loss entry as on 31st March’2022.
Follow below steps:
  • Click on navigation tab > General Ledger > Journal Entry
  • Clicking on Journal entry system will redirect you to journal entry report.
  • Click on NEW button.
  • System will redirect you to journal entry form page.
  • In this case we need to pass forex loss entry. (i. e. as on 31st march our Ex rate is 77.04. which is less than Ex rate 78.56 at which the invoice was booked).
  • Total Forex loss - 78.56 less 77.04 = 1.52 * 2000 USD = Rs. 3,040.

Forex Loss entry:
By Exchange Gain/Loss A/c dr.
 To  Debtor A/c cr.
Forex Gain entry:
By Debtor A/c dr.
 To Exchange Gain/Loss A/c cr.
How to Pass Jv in system:
  • Select posting date as 31st March’2022
  • Select posting branch
  • Under Account section Select Debtor and select party as Vipra International Private Limited enter credit amount - Rs.3040
  • In reference type section select sales invoice in reference number > enter invoice number> OFLOFDEL21120001
  • Select Exchange Gain loss under account section enter debit amount- Rs.3040
Refer below image:
  • Click on save and submit.
On 1st April’2022 this entry will be reversed.
Please follow below steps to reverse the Journal Entry
  • Open the Journal entry.
  • Click on Reverse General Entry.
  • Change the posting date to 1st April’2022.
  • Then click on save and submit button.