If you use multi-currency accounting you need to periodically revalue transactions.

A Realized and Unrealized Gain/Loss accounting method revaluation is considered temporary.  Exchange gains and losses are posted to unrealized exchange gain/loss accounts during revaluation and reversed in the next period.

A Recognized Gain/Loss accounting method revaluation considered permanent.  Exchange gains and losses are posted to exchange gain/loss accounts during revaluation and not reversed in the next period.

Revaluation process requires following setup steps:

GL Setup -> Revaluation Codes

• Add Revaluation code

GL Accounts

• Flag GL account as multicurrency

GL Accounts – Currency Tab

• Select default currency
• Specify source currency
• Set Revaluation option to Yes
• Select Revaluation Code

GL Periodic Processing -> Create Revaluation Batch

• Specify source currency
• Select range of Accounts From/To
• Select Revaluation Code
• Specify Fiscal Year and Period
• Specify journal entry date
• Specify Revaluation Rate/Rate Date
• Force Revaluation set to “No” – all accounts will be processed with Revaluation set to “Yes” for this currency on the GL accounts – Currency Tab screen

Process to create Revaluation Batch