In this lesson, you will learn how to add exchange rate revaluation under the Multi-currency feature in Parsimony.com. Exchange rate revaluation is a process of adjusting the value of foreign currency assets and liabilities to reflect the current exchange rate. This process helps in determining the true financial position of a company in a multi-currency environment.
To add exchange rate revaluation, follow these steps:
- Go to the “Multi-Currency” tab and click on “Exchange Rate Revaluation” from the drop-down menu.
- Click on the “Add New” button to create a new exchange rate revaluation.
- Enter the necessary details such as the revaluation date, currency, exchange rate, and the account that needs to be revalued.
- Choose the type of revaluation – whether it is a gain or loss – and enter the amount.
- Click on the “Save” button to add the exchange rate revaluation.
Once you have added the exchange rate revaluation, you can view it under the “Exchange Rate Revaluation” tab. You can also edit or delete the revaluation if required.
By adding exchange rate revaluation in Parsimony.com, you can ensure that your financial statements reflect the true financial position of your company, even in a multi-currency environment.