This chapter contains the following topics:
Before you can use detailed currency restatement, you must set up certain information that the system uses during processing. Unlike other setup programs, which you access using different menu options, you can perform all of the setup for detailed currency restatement from one interactive form called Detailed Currency Setup. This form has buttons that you select to access the programs to set up or revise information.
This section discusses how to:
Set up constants for detailed currency restatement.
Set up companies for detailed currency restatement.
|Detailed Currency Setup||W11410A||Financial Restatement (G1122), Detailed Currency Setup||Set up constants for detailed currency restatement.|
|Company Setup||W0010B||Financial Restatement (G1122), Detailed Currency Setup
Click Company Setup. On the Work With Companies form, select a company and then select the Currency form.
|Specify whether a company performs detailed currency restatement.|
|Revise Currency Exchange Rates||W0015AA||Financial Restatement (G1122), Detailed Currency Setup
Click Exchange Rate Setup.
On the Work With Currency Exchange Rates form, click Add.
|Enter exchange rates to convert domestic currency amounts in the AA ledger to alternate currency amounts in the XA ledger. If you do not set up exchange rates with a specific effective date, the Detailed Currency Restatement program uses the exchange rate of the last effective date.|
Enter 2 (detail) or 3 (configured hub) for detailed currency restatement. No other methods are valid.
Enter Y (one offset per transaction) for detailed currency restatement. This is the method by which the system generates the offset entry for trade accounts. No other methods are valid.
Specify whether a company allows detailed currency restatement processing. Values are:
Blank: Do not allow detailed currency restatement processing.
1, Y, or Z: Allow detailed currency restatement processing.
This section provides an overview of the ledger types used for detailed currency restatement, lists prerequisites, and discusses how to set up the ledger types rules for detailed currency restatement.
When you work with multiple currencies, the system uses ledger types AA (actual amounts) and CA (foreign currency amounts). To perform detailed currency restatement, the system uses the XA, YA, and ZA ledger types. You must set up the alternate currency (XA) ledger for detailed currency restatement and, optionally, the domestic origin (YA) and foreign origin (ZA) ledgers. The detailed currency restatement program is designed to use only these ledgers.
For detailed currency restatement, the system uses the accounts from the AA Ledger in the F0911 table and processes all accounts to the Currency Exchange Rate table (F0015), in which the daily rates are stored. The system updates the values to the XA Ledger in the F0911 table.
This table describes the XA, YA, and ZA ledgers, which are hard coded:
|XA (alternate currency)||This ledger is required and contains a partial or complete chart of accounts with transactions in the alternate currency. The alternate currency of the XA ledger is typically a currency that does not fluctuate as compared with the domestic currency of a company. Each transaction in the AA ledger is restated into its alternate currency (XA) equivalent by using the exchange rate that is effective on the date of the transaction. The exception to this is when amounts in the foreign currency ledger (CA) are in the same currency as the XA ledger. In this case, the program copies the CA ledger amounts to the XA ledger; it does not restate the AA amounts.
Assign the currency code of the alternate (stable) currency to ledger type XA. This must be the same currency code as company 00000.
If you do not set up this ledger and run the Detailed Currency Restatement program (R11411), the system exits the program without processing records.
|YA (domestic origin)||This ledger is optional and contains a partial chart of accounts with transactions that originated in the domestic currency (AA ledger), restated into the alternate ledger (XA).
Do not assign a currency code to this ledger type. The system uses the domestic currency of the company on the transaction.
This ledger is typically used for analysis purposes and shows the amount of the XA ledger that was created by original domestic transactions.
|ZA (foreign origin)||This ledger is optional and contains a partial chart of accounts with transactions that originated in the foreign currency (CA ledger), restated into the alternate ledger (XA).
Assign the currency code of the alternate currency to ledger type YA. (This must be the same currency code assigned to the XA ledger.)
This ledger is typically used for analysis purposes and displays the amount of the XA ledger that was created by original foreign transactions.
You set up these ledgers in UDC table 09/LT and on the Ledger Type Rules Setup form.
If you use the Detailed Currency Restatement program to record transactions by domestic origin and foreign origin, the system updates the YA and ZA ledgers based on the original entry. If the original entry was a domestic transaction, the system updates the YA ledger. If the original entry was a foreign transaction, the system updates the ZA ledger
This table describes how the system updates certain transactions for detailed currency restatement:
|Original Transaction||Alternate Ledger Updated|
|Domestic transaction in the AA currency||No foreign currency (CA) amount exists. The system:
|Foreign transaction in the XA currency||The system copies the foreign currency (CA) amount to both the XA and ZA ledgers.|
|Foreign transaction in a currency other than the XA currency||The system:
Before you complete the tasks in this section:
Ensure that the XA, YA, and ZA ledger types are set up in UDC table 09/LT.
Decide whether your organization has to maintain any other ledgers.
If so, add the ledger type to UDC table 09/LT and use the Ledger Type Rules Setup form to define the financial rules for the ledger type and, if applicable, assign a currency code.
|Ledger Type Rules Setup||W0025FR||Financial Restatement (G1122), Detailed Currency Setup
Click Ledger Type Setup.
Select the appropriate ledger type on the Work With Ledger Types form.
|Set up the rules for the detailed currency restatement ledger types.|
Select these check boxes for ledger type XA only if you restate the entire chart of accounts.
This check box does not apply to ledger types XA, YA, and ZA. The detailed currency restatement program is hard-coded for ledger types XA, YA, and ZA; therefore, this option is ignored by the system.
Enter the currency code in which to restate the domestic AA ledger. Complete this field for ledger types XA and ZA only.
Enter the currency in which you restate amounts in this field for ledger type XA and, if applicable, ZA. A currency code designation for a ledger type applies to all companies using that ledger.
If you use ledger type ZA, you must assign it the same currency code as ledger type XA. Ledger type ZA contains the foreign entries that were restated into the XA ledger; therefore the currency code must be the same.
Important:To maintain the integrity of the ledgers, do not change the currency code that you assign to them after you begin using detailed currency restatement.
This section provides an overview of the automatic accounting instructions (AAIs) for detailed currency restatement.
AAI item CRxx defines the account ranges that the system uses for detailed currency restatement. You restate amounts from the AA ledger to the XA ledger and, optionally, the YA and ZA ledgers.
The system uses the account ranges assigned to AAI items CRxx to restate amounts in another currency.
xx is used in pairs and represents the beginning and end of a range. For example, CR01 represents the first account in a range and CR02 represents the last account in that range.
The business unit is optional.
If you leave the Business Unit field blank, the system uses the business unit of the account number on the transaction.
Ranges cannot be skipped and must be this sequential order:
01–02 = first range of accounts
03–04 = second range of accounts
You can define up to 48 ranges.
To restate the entire chart of accounts, use only one pair:
CR01 = Object account 1000
CR02 = Object account 999999.99999999 or 999999.ZZZZZZZZ (depending on the operating system)
The sequence numbers for AAI items CRxx are 11.620 and 11.630, and they do not fall within the sequence numbers for General Accounting.
These rules apply to AAI item CR:
You set up this AAI item only if you restate the entire chart of accounts into the XA ledger (and the YA and ZA ledgers, if applicable) and require the ledger to balance.
The account assigned to this AAI item keeps track of the journal entries created to balance the currency restatement ledgers.
Set up this AAI item only if you set a processing option to create balancing journal entries when you run the Detailed Currency Restatement program.
If the processing option is set to create balancing entries and the AAI item does not exist, the system generates an error report when you run the Detailed Currency Restatement program.
The business unit.object.subsidiary is required.
The sequence number for AAI item CR is 11.610, and it does not fall within the sequence numbers for General Accounting.
Note:To calculate gains and losses and restate the amounts in the alternate ledger (XA), the system uses these AAI items:
RG: Realized gain on foreign currency receipts.
RL: Realized loss on foreign currency receipts.