This routine makes it possible to do periodical revaluation of selected G/L account balances, due to inflation or deflation, and create G/L postings that reflect the revaluation. You can use several inflation accounts to keep track of gains and losses.
Note: The revaluation is performed in system currency only.
Calculated inflation amounts are posted automatically to the assigned inflation accounts and increase (inflation) or decrease (deflation) the inflation accounts’ balances. The contra entries decrease or increase the balances on the specified contra accounts. All inflation account groups are revalued during one run, except those groups with an inflation rate of 0% defined.
The routine can be run in two modes; simulation or update. This is because it is recommended to run a simulation to verify the accounting before the actual update.
Different accounts can be revalued by different percentages. This can be accomplished by the use of inflation account groups, where various inflation accounts and percentages can be entered.
It is entirely the user’s responsibility to keep track of the inflation revaluation runs; when they should be performed and to what percentages.
Inflation account groups
You define the account groups for this routine in Work with inflation account groups. See Set up inflation account groups.
You establish the link between an inflation account group and the main accounts it consists of in the Account file (Work with chart of accounts). See Link the account groups to main accounts in the Account file.
A main account can only belong to one inflation account group. One inflation percentage rate, one inflation account and one inflation contra account is defined for each inflation account group.
The inflation accounting only changes the balances of the inflation accounts and contra accounts. This means that balances of the revalued accounts are never changed by the inflation accounting run.
Printouts
- G/L inflation revaluation simulation list
- G/L inflation revaluation