In Zoho Books, Bank Revaluation is used to adjust the value of foreign currency bank balances based on the latest exchange rates at period-end (month-end / year-end). This ensures your financial statements reflect the correct value in your base currency (for example, AED in UAE companies).
Why Bank Revaluation Is Needed
If your company’s base currency is AED and you maintain a bank account in USD/EUR/GBP, Zoho:
Records transactions at the rate on the transaction date
Exchange rates change over time
So your bank balance value becomes outdated
Revaluation updates this value and records:
Unrealized Exchange Gain
Unrealized Exchange Loss
in Profit & Loss.
Prerequisites in Zoho Books
Enable Multi-Currency
Go to:
Settings → Currencies → Enable Multi-Currency
Add foreign currencies and activate them.
Update Exchange Rates
Go to:
Settings → Currencies
Enable auto-update or
Enter rates manually
These rates are used for revaluation.
Set Gain/Loss Accounts (Default Setup)
Zoho automatically maps:
Exchange Gain
Exchange Loss
under “Other Income / Expense”
(No manual configuration usually required)
How to Do Bank Revaluation in Zoho Books
Step 1: Go to Revaluation Module
Navigate to:
Accountant → Currency Adjustment→ Base currency Adjustment
Step 2: Select Revaluation Date
Choose:
Period end date (e.g., 31/01/2026)
Currency (optional)
Step 3: Select Accounts
You can revalue:
Foreign Bank Accounts
Cash Accounts
Receivables
Payables
Select the required accounts.
Step 4: Run Revaluation
Click Revalue
Zoho will:
Compare book rate vs latest rate
Calculate difference
Create adjustment journal entry