CB Revalue Foreign Bank Accounts

Navigator > Tasks > Cash Book > Revalue Foreign Balances

Foreign bank accounts are revalued to ensure their base-currency value reflects current exchange rates. Exchange rates are shown as foreign currency per NZD (reciprocal rates).

The revaluation process separates realised and unrealised foreign exchange (FX) movements so that gains and losses are reported correctly.

Revaluation is required as part of the End Of Period for CB, but may also be run as a task as often as required.


Period		Defaults to the Current Period. Prior periods, to the limit of the first available period may be revalued if required, for example, if an incorrect exchange rate was used.
Valuation Date		Defaults to the last day of the Current Period (can be changed).
Last Valuation Date		Displays the date of the last revaluation.
	Expand Toolbar `(Alt+F9)`	Expand the toolbar to give access to all toolbar options. Press `Esc` to close the expanded toolbar.
	Print `(Ctrl+P)`	Print a CB Revaluation Report.
Currency Code		The Currency codes of all foreign bank accounts.
Rate Type		Defaults from FX Settings (can be changed).
Exchange Rate		If a revaluation has previously been performed for the valuation date loads the rates used. Otherwise fetched from FX Exchange Rate based on the date or date closest to the Valuation Date, (can be changed). If no rates are found you will need to key the rates in.
	Save Rates	Save back to FX Exchange Rate for the date specified in the Valuation Date field.
	Run `(F9)`	Revalue unallocated Foreign Bank Account Balances.
	Cancel `(Esc)`	Close the form and do not make any changes.

Realised and unrealised FX on foreign bank accounts

When a foreign currency bank account is revalued, the system splits the foreign exchange (FX) movement for the period into:

Realised FX – FX that relates to money that has effectively been spent or settled during the period.
Unrealised FX – FX that relates to foreign currency that is still held in the bank account at period end.

To do this, the system compares the net movement for the period (deposits and withdrawals) with the opening balance.

If the account opens in credit (positive balance)

Think of a positive foreign bank balance as money you already “hold”.

Withdrawals tend to be realised

A withdrawal reduces the amount of foreign currency you still hold. Because that money has been used, the related FX movement is treated as realised.

Deposits tend to be unrealised

A deposit increases the amount of foreign currency you hold. Because that additional balance is still sitting in the account at period end, the related FX movement is treated as unrealised (and will become realised later when it is withdrawn/spent).

Net effect rule (credit balance)

The system looks at the net effect of the period’s movements:

Withdrawals > Deposits
Net movement is a withdrawal → more FX is treated as realised (balance reduced; funds have been used).
Deposits > Withdrawals
Net movement is a deposit → more FX is treated as unrealised (balance increased; funds still held).

If the account opens in overdraft (negative balance)

An overdraft is the reverse situation: you effectively “owe” foreign currency.

Because the position is reversed, the realised/unrealised treatment is reversed as well:

A deposit reduces the overdraft (you are paying it back / settling the liability). That is treated as realised.
A withdrawal increases the overdraft (you owe more). That additional exposure remains outstanding and is treated as unrealised.

Net effect rule (overdraft)

Deposits > Withdrawals
Net movement reduces the overdraft → more FX is treated as realised.
Withdrawals > Deposits
Net movement increases the overdraft → more FX is treated as unrealised.

Important note about clearing the account

If a foreign bank account’s closing balance is zero, any unrealised FX remaining is cleared (because there is no foreign currency position left to revalue).

In This Section

CB Realised and Unrealised Balances Example

Realised and Unrealised Balances