Setting Up Position Accounting
To set up position accounting, use the Position Accounting component (GL_POS_ACT).
This section provides an overview and discusses how to define options and ChartFields for position accounting.
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Page Name |
Definition Name |
Usage |
|---|---|---|
|
GL_POS_ACT |
Define position accounting options. A position account and a currency code must exist for each currency that you use. |
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GL_POS_ACT_CFS_SEC |
Define additional ChartFields you want carried over from source transactions to position accounting entries. |
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Position Account Additional Group |
GL_POS_ACT_SET_SEC |
Enter position account definitions for account balancing groups other than the default. |
Financial institutions that deal in international currencies identify and track the risks that are associated with exposure to foreign exchange, or the risk that is associated with financial assets that are held in other than base currency. Position accounting is a widely accepted financial method for measuring risks and accounting for currency related gains and losses at the balance sheet level.
When you enable position accounting for the ledger groups of your business units, the journal edit process generates the appropriate position accounting entries for tracking profits and losses that result from multicurrency transactions.
Use the Position Accounting page (GL_POS_ACT) to define position accounting options.
A position account and a currency code must exist for each currency that you use.
Navigation:
Field or Control |
Description |
|---|---|
Group |
Select the account balancing group for the definition. When journal edit generates position accounting entries, it must use an account with the same account attributes as the source transactions. Otherwise, the ledger will be out of balances. Since source transactions can contain different account attributes, you must have one position account definition for each account balancing group. If you do not activate any account balancing attributes on the Installation − Overall page, you will have only one account balancing group - DEFAULT. |
Account |
Source transactions in currencies that do not have individual position accounts post to the account that you specify here. The system displays the description as defined on the Account Definition page. |
Alternate Account |
Source transactions in currencies that do not have individual position accounts post to the alternate account that you specify here if you enable the alternate account feature. The system displays the description as defined on the Alternate Account Definition page. |
Additional Groups |
If you have activated any account balancing attributes, the Additional Groups link is displayed on the page. This enables you enter position account definition for other account balancing groups. |
Currency |
Select a valid currency code. The system automatically displays the description. |
Account |
Enter the position account number for this currency. Position account numbers must be defined in your chart of accounts for each type of currency that is held. |
Alt Acct (alternate account) |
Enter the position alternate account number for this currency if the alternate account feature is enabled. |
Additional Group |
Click this link to access the Position Account Additional Group page to enter position account definitions for account balancing groups other that the default. This link is available only if you have activated account balancing attributes using the Installation options page and set up accounting balancing groups using the Account Balancing Group page. See Setting Installation Options for Account Balancing Groups. |
Use the Position Accounting ChartFields page (GL_POS_ACT_CFS_SEC) to define additional ChartFields you want carried over from source transactions to position accounting entries.
Navigation:
Click the ChartFields link on the Position Account page.
Field or Control |
Description |
|---|---|
ChartField |
Enter the name of any additional ChartField that you want to carry over from source transactions to position accounting entries. |
Retain Value |
Click this check box or enter a ChartField value in the ChartField Value column. If you select this check box, the ChartField values carry over from source transaction entries to system generated position accounts. |
ChartField Value |
If you do not select retain value, use this field to specify the ChartField value to use for the system generated position account. If you enter a ChartField value here, the system ignores the ChartField value on the source transaction entry. |