Multicurrency: Commitment Revaluations

You can revalue commitments at regular intervals. When you run the Revalue Foreign-Denominated Commitments business process, the program applies the most current exchange rate, based on the parameters you specify. For pledges, grant awards, and planned gifts, the process applies the exchange rate to the commitment’s balance. For recurring gifts, the process applies the exchange rate to the recurring gift amount because these commitments do not have a balance. The revalued amount indicates the value of the commitment to your organization. Although the transaction amounts do not change, the value of the revenue may increase or decrease as currency exchange rates fluctuate.

For example, your base and organization currency are GBP. Last year, you received a recurring gift for 100 amounts. On the Currency Revaluations tab, you can view the history of a commitment’s revaluations.

The Previous balance and New balance columns show the commitment's balance before the revaluation and the balance after you run the revaluation process, except for recurring gifts. For this type of commitment, the Previous balance and New balancefields show the transaction amount because recurring gifts do not have a balance. If you select “Maintain installment amounts” in Recurring gift settings under Configuration in Revenue and the donor does not pay the full amount, a past due amount appears on the recurring gift record. However, this is not a balance because recurring gift installments are always the same transaction amount and never include any previously unpaid amounts.

For commitment records that meet all criteria specified, the Revalue Commitments business process creates an entry for the base currency and organization currency amounts. For information about how to revalue commitments, refer to Multicurrency: Revalue Commitments.