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Re: Help on account_multicurrency_revaluation

CorporateHub OU, Alexey Pelykh
- 22/12/2020 09:59:21
Hi Graeme,

Indeed, both unpaid invoices and bills are making unrealized amount that needs to be revaluated, and foreign currencies are pretty much the same - “unrealized” amount from operating currency point of view. The the thing about that module that is completely unclear to me is this picture:

What exactly did it do? It took following exchange rates
22 Jun 2016 1 EUR to AUD = 1.506581
30 Sep 2016 1 EUR to AUD = 1.467449

Took one (why that one?) transaction:
100 / 1.506581 = 66.37
100 / 1.467449 = 68.14

and wrote that difference to the to the bank account, making 0.0 AUD and 1.78 EUR as resulting balance. What makes no sense, at least to me.

That logic would be perfectly valid for AR and AP, I guess, but for liquidity it probably should’ve been:
1. Take ending balance in liquidity currency (0.0 AUD)
2. Convert it to operating currency: 0.0 AUD / 1.506581 = 0.0 EUR
3. Write difference between current balance of liquidity in EUR and actual value to balance it out

What am I missing?

On 22 Dec 2020, at 09:47, Graeme Gellatly <> wrote:

Hi Alexey,

Been a while since I had to go through foreign currency in detail. I don't really know the module but I did a lot with Odoo and mis_builder in this space.

Now from your email it appears you are converting an account currency to a functional currency for reporting purposes.  We must value that fairly as we must do for any liquidity accounts. If you think about it, a liquidity account is nothing more than a debtor when in debit, and a creditor when in credit (from your perspective).  Ultimately someone owes someone else money. IAS 21 covers most of what you ask. para 16, 17, 23(a) 28 and 29.

Therefore the contra will end up on the P&L because realized or unrealized it is a true and fair view of those accounts at balance date. This is the easy side of balance date type valuation issues. Ordinarily I'd just reverse them out on the first day of new year, and then when the actual transactions flowed through everything squares up.

On Tue, Dec 22, 2020 at 8:36 PM Alexey Pelykh <> wrote:
Dear contributors,

I’m in dire need of help regarding account_multicurrency_revaluation and what it actually supposed to do.

I’ve experimented with it a bit and it seems (at least to my current understanding) that it does following:

On AR & AP accounts it revaluates unpaid amounts of foreign currency, effectively making entries about “Unrealized currency gains/losses”

But also by default it affects Liquidity accounts (bank accounts), making entries that seem to duplicate ones that Odoo makes when a multi-currency transaction is reconciled, effectively making some sort of “Realized currency gain/loss revaluations”. This completely falls beyond my understanding what it supposed to do, and why.

Also, I’m looking for a module that would do “bank balance revaluation”, account_multicurrency_revaluation is clearly not about that.

Any help would be greatly appreciated

Kind regards,

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