This chapter contains the following topics:
This method of currency restatement eliminates fluctuations in currency exchange rates over a period of time for comparison purposes. When you enter multicurrency transactions, the system uses the current exchange rate to convert amounts from a foreign currency to the domestic currency. Because exchange rates fluctuate, the converted amounts might not be useful for comparison purposes. You can eliminate fluctuations over a period of time by reposting the balances using a single date to retrieve exchange rates as if the exchange rate applied to all transactions. Reposting balances in this way enables you to:
Recalculate balances by using an exchange rate that is associated with a specific date.
Record the new balances in a ledger type that is used specifically for as if restatement. This can be the AD (as if restatement) ledger type or any other user-specified ledger type.
You can then compare the new balances with actual or budget balances. For example, a construction company with projects that span multiple years can compare original budget amounts to actual amounts that have been restated by using exchange rates that were in effect when the original budget was prepared. Or a company with sales people located worldwide can report sales figures at a stabilized rate for commission analysis.
Before you complete the tasks in this section:
Set up the system for as if restatement.
Enter an exchange rate with an effective date on or before the restatement date.
This section provides an overview of the As If Repost program and discusses how to:
Run the As If Repost program.
Set data selection for As If Repost.
Set processing options for As If Repost (R11415).
You use the As If Repost program (R11415) to restate account balances in the domestic currency using a single exchange rate. The program:
Selects posted foreign currency transactions from the foreign currency (CA) ledger in the F0911 table.
Applies a new exchange rate to the CA ledger.
Creates records for the restated domestic currency amounts and stores them in the as if restatement ledger (AD) in the F0902 table.
Although the AD ledger is commonly used as the as if restatement ledger type, you can use any user-specified ledger type except AA, CA, XA, YA, ZA, or AZ.
You can run the As If Repost program as often as necessary. Each time that you run the program, it overwrites existing balances in the AD ledger unless you specify a different destination ledger type in a processing option. You can run this program in three different modes:
Proof mode with report
The system prints a report but does not create balances in the destination ledger.
Final mode with report
The system creates balances in the destination ledger type and prints a detailed audit trail.
Final mode without report
The system creates balances in the destination ledger but does not print a detailed audit trail.
If transactions were originally entered in the domestic currency, the report does not display an original or as if exchange rate. That is because the source and destination amounts are the same.
The XJDE0001 version of the "As If" Repost program processes domestic and foreign transactions for the selected account range. Use this version to ensure that all transactions in the AA (actual amounts) ledger are transferred to the AD (as if restatement) ledger.
Select Financial Restatement (G1122), "As If" Repost.
The program logic for the XJDE0001 version of the "As If" Repost program depends on this data selection:
Document type not equal to BF.
The system selects only transaction records that are not summarized. The original exchange rate that was used cannot be determined if transactions are summarized.
GL posted code equal to P.
Prevents the program from restating transactions that are not yet posted to the F0902 table.
Do not change the data selection
Processing options enable you to specify the default processing for programs and reports.
Specify the date to use to retrieve the exchange rate from the F0015 table that the system uses to convert original transactions to the as if currency.
Specify the mode to use to run this program. Values are:
0: Proof mode. The system generates a report but does not create balances in the destination ledger.
1: Final mode with report. The system creates balances in the destination ledger type and generates a report.
2: Final mode without report. The system creates balances in the destination ledger but does not generate a report.
Specify the destination ledger type to use. The system creates balances in the ledger type that you specify. The ledger type that you enter must exist in user-defined code (UDC) table 11/TL. If you leave this processing blank, the system does not create balances regardless of the value in the Mode processing option.