Skip to main content
Documentation
Documentation
Administrator Guide
Last Updated: 2023-09-08
Define Revaluation Rules

Define Revaluation Rules

Security:
Set Up: Revaluation
 domain in the Financial Accounting functional area.
Create and update rules to automate the revaluation journal. You assign revaluation rules to companies. Use these rules when you run revaluation during the close process to record period end revaluations on foreign currency balances in specified ledger accounts.
When creating a rule, you can select 1 or multiple source book codes and a blank book code as the source and post the resulting revaluation journal to a selected target book code. This enables you create rules to process revaluations for specific target book codes that use different rule sets for reporting. Example: You can have 2 target reporting books that use different rules to process revaluation. You can create a rule that books revaluation to each reporting book by specifying a different target book code.
Workday revalues all accounts that have a balance. If you close an account, ensure that the account has zero balance for all worktag combinations in both the ledger currency and the transaction currency.
  1. Access the
    Create Revaluation Rule
     task.
  2. Define high-level details about the rule.
    As you complete the
    Details
     section, consider:
    Option Description
    Company
    Select 1 or more companies and company hierarchies that use the rule. They must share account set and fiscal schedule.
    Source Book Code
    You can assign 1 or more source book code to a revaluation rule.
    You can only select 1 target book code, and that book code must be in the source book code list.
    You can define different rules for each book code.
    If you leave this field blank, Workday revalues all results for the blank book code only.
    Blank Source Book Code
    In addition to the source book code, you can also select the blank book code as a source to journal lines posted to the blank book code.
    When you don’t specify a target book code, Workday selects the blank book code as the source book code. Therefore enable the blank source book code.
    Target Book Code
    Select a target book code that you want to post the revaluation journal to.
    When you don't select a target book code Workday will post the revaluation journals to the blank book code.
    Inactive
    Select when the revaluation rule isn't ready for use or to discontinue use. You can inactivate a rule if it's not included in a group.
  3. As you complete the
    Frequency
     section, consider:
    Option Description
    Time Frame
    Select how frequently to run the rule, such as every period or summary period. Before you close a period, you can see pending revaluations for the time period on these tasks that update ledger period status:
    • Update Ledger Period Status
    • Mass Update Ledger Period Status
    • Schedule Mass Update Ledger Period Status
    Fiscal Summary Schedule
    Select what to base a summary time frame on.
    Balance or Activity
    Select to run the rule for ledger account balances or ledger account activity. You can select
    Activity
     only when you select
    Period
     on the
    Time Frame
    prompt.
    If you select
    Activity
    , you can’t create a reversal.
    Create Reversal
    Defaults to creating a reversal journal entry on the first day of the next period. You can change the reversal date to a date after the run date on the
    Run Revaluation
     task. Workday posts the reversal journal when the ledger period for the selected date opens.
    When you don't check it, Workday includes only incremental changes each period.
  4. Define rule criteria for handling revaluation accounting.
    As you complete the grid, consider:
    Option Description
    Ledger Account / Ledger Account Summary
    Select the balance sheet or income statement accounts and ledger account summaries that have foreign currency amounts to revalue. Available summaries include at least 1 balance sheet or income statement account.
    If multiple companies are linked to the rule, then the list displays only valid accounts across the selected companies.
    Revaluation Currency Rate Type
    Select the currency rate type to use for the revaluation. When you run reports with revalued amounts, you can select a currency rate type consistent with the revaluation rule.
    Example: Revalue intercompany payables and receivables at the average period rate. Revalue cash, account receivables, and account payables at the period end rate.
    Worktags to Retain on Target
    Select the worktags from the source entry to retain on the target debit or credit entry on the originating ledger accounts. If balancing your books by worktag, include the balancing worktag type.
    Workday recommends selecting:
    • Bank account for cash accounts because reconciliation reports are by bank account.
    • Supplier for accounts payable accounts.
    • Customer for accounts receivable accounts.
    When you select a balancing worktag, Workday automatically populates the same value on the
    Worktags on Offset
    .
    Offset Account Posting Rule
    To determine the account in which to post the realized, unrealized, or translation gain or loss, select the account posting rule for the offset journal line.
    Example: You select
    Realized Gain/Loss
     for a cash account,
    Unrealized Gain/Loss
     for a payable or receivable account, and
    Translation Gain/Loss
     for an intercompany account.
    Worktags on Offset
    To record the gain/loss entry on the offset account, select the worktags from the target account entry. If balancing your books by worktag, include the balancing worktag type.
    When you select an optional balancing worktag, Workday automatically populates the same value on the
    Worktags to Retain on Target
    .
After you create revaluation rules, you can use the:
  • Edit Revaluation Rule
     task to update the revaluation rule.
  • View Revaluation Rule
     report to review your rules and copy a rule from its related actions menu.