Foreign-currency revaluation

Restate your open foreign-currency receivables and payables to the period-end closing rate and post the unrealized gain or loss as a balanced journal — reversible and idempotent per period, so the trial balance always foots to zero. Statements present in your home currency.

You raised a $5,000 export invoice at ₹83 to the dollar; at year-end the dollar is ₹85. The receivable is now worth more in rupees than your books carry — an unrealized gain you should recognise before you close the period. Finocket's foreign-currency revaluation restates your open FX balances to the period-end rate and posts the gain or loss for you.

What a revaluation run does

On FX revaluation, pick the period and enter the closing rate for each foreign currency you hold. Finocket takes every still-open foreign-currency receivable and payable, compares its booked home value against its value at the closing rate, and shows the per-currency gain or loss in a preview before you commit. Rupee (home-currency) balances and currencies with no rate on file are left untouched — an all-rupee book is an honest no-op.

A balanced gain/loss journal

Post the run and Finocket writes a balanced journal: receivables that gained restate up against Unrealized Forex Gain; payables you now owe more on restate against Unrealized Forex Loss. Debits equal credits to the paise, so your trial balance still foots to zero. It follows Ind AS 21 / AS 11 — monetary items restated to the profit & loss.

Reversible and idempotent

Each period runs once — a second run on the same period does nothing, so the gain or loss is never counted twice. Because an unrealized adjustment belongs to one period only, the run is fully reversible: reverse it and a mirror journal nets it back to zero, and only then can the period be re-run with fresh rates.

What this is, and isn't

This is a period-end unrealized restatement — the paper gain or loss while the invoice is still open. The realized gain or loss when the invoice is actually settled at a different rate is not yet posted automatically. Your statements are always presented in your home currency. Verify the run with your CA before you rely on it for filing.

Frequently asked questions

What does a revaluation run do?

It takes every still-open foreign-currency receivable and payable, compares its booked home value against its value at the period-end closing rate you enter, and posts the resulting unrealized gain or loss. Rupee balances and currencies with no rate on file are left untouched — an all-rupee book is an honest no-op.

Does revaluation keep my books balanced?

Yes. The run writes a balanced journal — receivables that gained restate against Unrealized Forex Gain, payables you owe more on against Unrealized Forex Loss — with debits equal to credits to the paise, so the trial balance still foots to zero.

Can I re-run or undo a period's revaluation?

Each period runs once; a second run does nothing, so the gain or loss is never counted twice. Because it's a period-end adjustment, it's fully reversible — reverse it and a mirror journal nets it back to zero, after which the period can be re-run with fresh rates.

Does this cover the gain when the invoice is finally paid?

Not yet. This is the period-end unrealized restatement while the invoice is still open. The realized gain or loss when it's actually settled at a different rate isn't posted automatically yet, and statements are always presented in your home currency. Confirm with your CA before filing.

Budgets & ratio analysis

Read your books like an analyst: standard financial ratios (profitability, liquidity, leverage, efficiency) and a budget-vs-actual comparison, both from your double-entry books.

Scheduled report emails

Put any report on autopilot: email Receivables ageing, Payables ageing or Financial ratios as a PDF or CSV on a daily, weekly or monthly schedule — the same numbers you see on screen, delivered to your inbox.

Closing stock & cost of goods sold in your accounts

Fold inventory into your final accounts: closing stock on the balance sheet and cost of goods sold / gross profit on the P&L, at weighted-average cost — a presentation overlay that keeps the sheet balanced.