1. Base Currency Conversion Implementation Guide
  2. Understanding the Multicurrency Intercompany Conversion

Understanding the Multicurrency Intercompany Conversion

If the Allow Multicurrency Intercompany Trans check box is selected in the General Accounting Constants program (P0000), you must run the Multicurr Interco Conversion program (R890911EB).

The base currency conversion does not convert multicurrency intercompany transactions that are automatically generated by the system. To convert these transactions, you run the Multicurr Interco Conversion program one time only for all plans after you have converted all companies. If you run this conversion program multiple times, the system converts all records on a transaction each time, which results in inaccurate amounts.

Unlike other ordered conversion programs, the Multicurr Interco Conversion program can convert multiple currencies at the same time because the program retrieves conversion rates from the F0015 table, based on the companies in the plan that you are converting.

The Multicurr Interco Conversion program converts amounts in the F0911 table for all intercompany transactions in which the base currency of the company associated with the transaction is being converted. To convert these intercompany transactions, the program first locates all AA transactions with 1 in the GLALT1 field (the value 1 indicates that a multicurrency intercompany transaction was automatically generated). It then:

  • Converts all transaction amounts on a journal entry if the company on the first line (which determines the base currency of the transaction) is the company that you are converting.

  • Deletes the corresponding AE (offset) and AM (adjusting) entries for companies that you are not converting.

    Note: The Convert F0911 Base Currency conversion program (R890911E), which runs during the base currency conversion, deletes corresponding AE and AM entries for all companies converted. The Multicurr Interco Conversion program, which you run after the base currency conversion, deletes corresponding AE and AM entries only for those companies that are not converted. (The AE and AM entries are re-created later during the post.) Review this example for further clarification.If the first line of a journal entry is for a CAD company and the second line is for a USD company, this applies: The Convert F911 Base Currency conversion program deletes the corresponding AE and AM entries for the CAD company (which is being converted). The Multicurr Interco Conversion program deletes the corresponding AE and AM entries for the USD company (which is not being converted) and:

  • Clears the posted code and the GLALT1 field on the original transactions and resets the batch to an approved (unposted) status so that you can post the batch again.

  • Prints a report that lists the batches that were reset to an approved (unposted) status.

The Multicurr Interco Conversion program, along with the Multicurrency Interco Conversion Post program (R8909801EB), makes the necessary adjustments to keep the multicurrency intercompany transactions in balance.