Banking

Foreign Currency Deposit — Month-End Revaluation

Revaluing USD deposit liabilities at the month-end CBJ official exchange rate.

Account NameTypeDebit ($)Credit ($)
FX Revaluation Loss (P&L)Expense (+)350.00-
Customer USD Deposits (JOD Equivalent)Liability (+)-350.00

💡 Accountant's Note

If the JOD weakens against USD (unusual given the peg), the JOD value of the USD deposit liability increases, creating a revaluation loss for the bank. In practice, the JOD/USD peg is fixed, so this entry is relevant only for non-USD FX deposits (EUR, GBP).

Practitioner & Systems Framework

💻 ERP Architecture

In SAP, month-end FX revaluation runs via T-Code FAGL_FC_VAL. In Oracle FLEXCUBE, the REVALN batch handles all FX position revaluation using the EOD rate. For JOD/USD, the CBJ peg means no revaluation is needed. For other currencies, the CBJ's published cross rates are used.

⚠️ Audit Flags

Auditors verify revaluation rates match CBJ official rates on the last day of the month. Any bank-sourced rates used instead of CBJ rates for revaluation require written justification. The net FX revaluation P&L must reconcile to the treasury's open position report.

📄 Required Documentation

CBJ official exchange rate bulletin, month-end revaluation batch output, open FX position report, and reconciliation of revaluation P&L to treasury position report.

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QA

Expert Analysis by Qusai Ahmad

General Accountant Supervisor & IFRS Specialist

Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.

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