Problem: Revaluation of bank accounts revalue entries that are quite old (can be many years old), which is logical as all these entries make up the Balance in the Currency the Bank Account.

The approach results in a huge many for ever increasing unnecessary adjustments during revaluation.

Different to Customer Balances and Vendor balances. In Bank Entries, we do not have the advantage of the Customer Ledger Entries or Vendor Ledger Entries become closed when fully applied. But we can create something almost similar.

Solution. A fairly simple solution to implement:

1) After a year end (or a month end) revaluation to do the following. Make a Bank Journal entry, that clear out the entire Bank Balance and bring it back in.

2) Add a bit of logic, so that the clearing entry "apply" to all the older "non-applied entries",

3) Add a "Closing Bank Entry No." field. Introduce a supplementary "Closed" field (not to be confused with "Open" field which is used for whether matched on Bank Recon).

All the entries that get closed by the closing Entry are updated to reflect the Closing Bank Entry No. Perhaps by a similar approach as Calc & Post VAT Calculate and Post VAT Settlement.

4) Make a change to "Exchange Rates Adjustment" process Report 596, so that it ignores Entries that are Closed. Now it won't fore ever revalue old entries.

5) There is one special thing to take care of: Prevent entries for which bank reconciliation is not posted, from being Closed in this way. Such entries are often erroneous posted accounting entries such as duplicates. Most business will do a year end date Bank Recon in any case as a good practice, hence un-reconciled Bank Entries be minimal.