Bank Revaluation in Odoo is used to adjust the value of foreign currency bank balances based on the latest exchange rates at a specific date (month-end, year-end, etc.). This ensures your financial statements reflect accurate values.
It is mainly used when your bank account is in a foreign currency.
Why Bank Revaluation Is Needed
When you have a bank account in USD, EUR, etc., but your company’s base currency is AED, Odoo records:
Transactions at the rate on the transaction date
But exchange rates change over time
So at period-end, your bank balance must be revalued to the current rate.
This creates:
✔ Unrealized Gain
✔ Unrealized Loss
Which appears in Profit & Loss.
How Bank Revaluation Works in Odoo
Odoo uses Automatic Currency Revaluation through the Accounting module.
Step 1: Enable Multi-Currency
Go to:
Accounting → Configuration → Settings → Currencies
Enable Multi-Currency
Step 2: Set Exchange Rates
Go to:
Accounting → Configuration → Currencies
Update exchange rates manually or enable automatic updates.
Step 3: Configure Gain/Loss Accounts
Go to:
Accounting → Configuration → Settings
Set:
Exchange Gain Account
Exchange Loss Account
These are used during revaluation.
Step 4: Run Currency Revaluation
Go to:
Accounting → Review → Currency (odoo 19)
Then:
Select Revaluation Date
Choose Accounts (Bank, Cash, Receivables, Payables)
Click Revaluate
Odoo will calculate:
Difference due to rate change
Create adjustment journal entry
Accounts That Can Be Revalued
Odoo allows revaluation for:
Bank Accounts
Cash Accounts
Accounts Receivable
Accounts Payable
(All foreign currency balances)