We're reviewing our cutover data last year in relation to open foreign-currency denominated APs and ARs. What our implementation consultants did was to import the open ARs and APs as of the cutoff date (say 6/30/21) using the original foreign currency amount and original exchange rate. Obviously, the unrealized FOREX gains and losses were already recorded in the legacy system. When we ran the foreign currency revaluation process on 7/31/21, the unrealized FOREX gains and losses that were calculated were between the original exchange rate (not the closing rate on 6/30/21) and the closing exchange rate on 7/31/21 which seems wrong because we did not reverse the 6/30/21 unrealized FOREX on 7/1/21. What should have been the approach here? Should they import the open AR and APs using the exchange rate at 6/30/21? Then, no reversal is necessary on 7/1/21. If so, wouldn't it be misleading because they do not represent the original foreign currency amount? Or did they do it correctly except that they should have created a reversing JE on 7/1/21 on the unrealized FOREX gains and losses on 6/30/21, so that when we run the forex revaluation process in NS, the new unrealized FOREX is the net of the reversal and the cumulative as of 7/31/2021 similar to what NS is doing?

the second one is more correct, otherwise the realised fx will be wrong when you pay your outstanding invoices

@Jon Kears thank you. I am now convinced that the second one is better. Can you please clarify your concern on foreign currency banks? What should have been done there? Also, how about the other account types that are in foreign currency as well that are eligible for revaluation? For example, non-trade ARs/APs, loans, etc. Should we also record the "open" balances at the original forex rate as of the cutoff date?

The foreign currency banks, you need to make sure the full foreign currency balance has been loaded with June 30th exchange rates, or the revaluation will be wrong And to your broader point: Yes part of your data migration should be posting the full foreign currency revaluation reversal on July 1st, including all balances that are held in foreign currency (ones that revalue, anyway)