Cryptocurrency accounting and revaluation
This article provides short overview of cryptocurrency revaluation process.
As part of period end accounting conventions require that crypto account balances are revalued by using different exchange rate types (current day rate, historical day rate, average etc). Cryptocurrency revaluation feature is used to revalue one or more crypto accounts. The revaluation process is done automatically, the balance in each crypto account posted in cryptocurrency is being revalued.
Realized gain & loss transactions are related to spending company cryptocurrencies. The process is done based on system day rates and rates provided in a journal entry. The transactions that are created during the revaluation process. Two transactions might be created, one for the accounting currency and one for the reporting currency (if a reporting currency is relevant). Each accounting entry is posted to the revaluation account and the main account that is being revalued. The reverse process is done automatically if the rate or initial entry is entered or updated.