27 Working with Multisite Consolidations in Multiple Currencies

This chapter contains the following topics:

27.1 Understanding Multisite Consolidations with Multiple Currencies

Multisite consolidations enable you to send account balances from multiple locations (or sites) to a central location. At the central location, you can then use the consolidated account balances for statutory and management reporting.

Two types of sites are involved in multisite consolidations:

  • Source: any of the locations where account balances originate.

  • Target: the central location (headquarters) that receives the account balances.

If the target and source sites have different currencies, the target site must use the JD Edwards EnterpriseOne Multicurrency Processing system. The source sites simply provide the data to the target site; therefore, the JD Edwards EnterpriseOne Multicurrency Processing system is not a requirement.

Before you can process multisite consolidations in a multicurrency environment, the balances of the source and target sites must be in one common currency. You run the Compute Restated Balances program (R11414) to restate company currencies (at the source sites) into the currency of the target company.

27.1.1 Example: Multisite Consolidations with Multiple Currencies

In this example, the target site is a USD company and two of the three source sites have different currencies. The source sites are company 10 (CAD), company 20 (JPY), and company 30 (USD). CAD is the Canadian dollar, JPY is the Japanese yen, and USD is the U.S. dollar.

The balance amounts from company 10 and 20 are restated into the currency of the target company (USD). The balances from company 30 do not have to be restated because they are already in the currency of the target company. The restated balances at the source sites are then consolidated and sent to the target site. At the target site, journal entries for the consolidated balances are created, processed, and posted to the F0911 and F0902 tables for multisite consolidation reporting.

See Also

27.2 Understanding the Basic Steps for Multisite Consolidations with Multiple Currencies

Most of the basic steps for multisite consolidations are the same, regardless of whether the target and source sites have different currencies. The main difference is that you must restate balance amounts from the source sites into one common currency (the currency of the target site company) before you can begin the multisite consolidations process.

27.2.1 Example: Basic Steps for Multisite Consolidations with Multiple Currencies

This example assumes that all companies at the source sites use the JD Edwards EnterpriseOne Multicurrency Processing system and that the source companies restate their company balances into one common currency before sending data to the target site.

Many of the programs described in these steps can be accessed from the Multi-Site Consolidation menu (G1021).

27.2.2 Source Site

These are the basic steps for multisite consolidations at the source site when multiple currencies are involved.

  1. Run the Compute Restated Balances program for each source company that has a currency different from the currency used for consolidations at the target site.

    This program restates domestic amounts from the AA ledger into the currency of the AC (consolidations) ledger, or other user-specified ledger. The currency of the AC ledger is the same currency used for consolidations at the target site.

  2. Run the Process Consolidations program (R10550) to read the restated amounts from the F0902 table and create consolidated balances for each source site in these tables:

    • Multi-Site Consolidation Transfer File Header (F1001)

    • Multi-Site Consolidation Transfer File (F1002)

    • Multi-Site Consolidation Transfer File - Category Codes (F1003)

    Note:

    If a source company uses the JD Edwards EnterpriseOne Multicurrency Processing system, do not enter a currency code in the processing option for Process Consolidations program; the system ignores the processing option.

    If a source company does not use the JD Edwards EnterpriseOne Multicurrency Processing system, enter the currency code of the company. The system assigns this currency code to the account balances of the source company, but does not perform any conversions.

  3. Run integrity reports to locate potential balancing problems and data inconsistencies before you send data to the target site.

  4. Use either the MSC Data Transmission program (R10610) or the Consolidation Console program (P10610) program to send the consolidated balances in the F1001, F1002, and F1003 tables from the source sites to the target site.

27.2.3 Target Site

These are the basic steps for multisite consolidations at the target site when multiple currencies are involved.

  1. Run the Journalize Consolidated Balances program (R10480) to create journal entries for the consolidated balances that are received from the source sites.

    This program creates journal entries in the Journal Entry Transactions - Batch File table (F0911Z1).

  2. Run integrity reports to verify the results of the previous step.

  3. Run the Process Batch Journal Entry program (R09110Z) to process and post the batch journal entries to the Account Ledger table (F0911).

    This program prints a report that provides a detailed audit trail.

  4. Run the General Ledger Post program (R09801) to post the F0911 journal entries to the F0902 table.

  5. Use any of the inquiry or report programs that access balance information from the F0902 table to review multisite consolidated balances.

27.3 Setting Up Consolidation Rules for Multiple Currencies

This section provides an overview of consolidation rules in a multicurrency environment and discusses how to define consolidation rules in a multicurrency environment

27.3.1 Understanding Consolidation Rules for Multiple Currencies

The steps to define the rules for consolidating account balances at the source sites are the same regardless of whether you process multiple currencies, except for retaining balance by currency detail for each account.

27.3.2 Form Used to Set Up Consolidation Rules for Multiple Currencies

Form Name FormID Navigation Usage
Consolidation Specification W10470C Multi-Site Consolidation (G1021), Review and select records.
Consolidation Specification Revisions W10470D On the Work With Consolidation Specifications form, click Add. Define consolidation rules for multiple currencies.

27.3.3 Defining Consolidation Rules for Multiple Currencies

Access the Consolidation Specification Revisions form.

27.3.3.1 Additional Setup

Balances by Currency

Select this check box. If you do not select it, the system creates one summarized record for each account.