Understanding Ledger Types Used 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:

Ledger Type	Description
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: Restates the AA amount in the XA ledger. Copies the AA amount to the YA ledger.
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: Restates the AA amount in the XA ledger. Copies the XA amount to the ZA ledger.