Why is it necessary?
If you are utilising the Opera Multi-currency module, it is necessary to revalue your Nominal Foreign Currency bank balances. This is not done automatically in Opera by design, to allow the user to decide on when gains/losses are taken and also to assess before any revaluation is performed.
The nominal foreign currency account will always show the same foreign currency balance as the cashbook; however the home currency balance will vary from the cashbook calculated value if the exchange rate has changed as transactions are posted.
When a transaction is posted via the cashbook, an exchange rate is entered and that equivalent home currency value is reflected in the nominal posting – this sets the nominal home currency value – it is accumulated on a transaction by transaction basis.
It is obviously very important to consider the exchange rate when posting a transaction as it will affect any potential gain or loss – it is also important to perform a revaluation regularly so you can consider any potential gain/loss as it can sometimes be overlooked.
The Process:
You can access the Bank Revaluation via Nominal > Utilities > Bank Revaluation
The system will give you the option of revaluing all relevant banks or a specific bank if [...]
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