Using Multicurrency Processing in a Multibook Environment
The following example demonstrates multicurrency processes in a multibook environment. Suppose that your company uses the following ledger structure:
| Field or Control | Description |
|---|---|
|
Business Unit: |
C007 (CHF) |
|
Ledger Group: |
MULTI-TRAN |
|
Ledgers: |
|
Also assume the following currency transactions:
| Currency Exchanges | Exchange Rate - Transaction Date | Exchange Rate - Reporting Date |
|---|---|---|
|
MXN to CHF |
0.295 |
0.297 |
|
MXN to EUR |
0.179 |
0.175 |
|
CHF to USD |
0.602 |
0.605 |
The results of using revaluation in a multibook environment is explained in the next section.
Using Revaluation in a Multibook Environment
The following topics discuss various aspects of revaluation processing in a multibook environment.
Beginning Ledger
This table shows the results of revaluation in a multibook environment. Assume that the following balances exist in the ledger. Account 2001 is a balance sheet account; 8001 is a profit and loss account. The base amount calculations are shown to exhibit the derivation of the base currency balance:
Example of Assumed Beginning Ledger Balances
Month End Revaluation Journal (Only Revalue Balance Sheet Accounts)
This journal results from running revaluation on the entire ledger group. The revaluation process skips the report ledger because it is specified as a translation ledger. The actuals and local ledgers are revalued. Running journal edit on this ledger carries the adjustments to the base currency of the actuals ledger down to the report ledger.
Example of Month-End Revaluation
Ending Ledger
The following table contains the ending ledger amounts after the revaluation:
Example of Ending Ledger Amounts
Translate Within Ledger Process
After revaluation, you run the Translate Within Ledger process, which generates the translation adjustment. Only the report translation ledger are processed. Continuing with the previous example, the report ledger balances are shown as follows.
Beginning Ledger (Report Only)
The following table contains the beginning ledger amounts to appear on the translation ledger for reports only:
| Account | Foreign Currency | Foreign Currency Balance | Report (USD) |
|---|---|---|---|
|
2001 |
CHF |
29.7 |
17.881 |
|
8001 |
CHF |
–29.5 |
–17.76 |
|
Gain/Loss |
CHF |
–0.2 |
–0.121 |
Month End Translation Journal
The output journal that results from the Translate Within Ledger process is shown in this example. This example assumes that the translate within ledger step is defined for balance sheet accounts only, but this need not be the case. You can, for example, define your translate within ledger step definition to include profit and loss, or income statement, accounts to be processed at an average rate.
Example of Month-End Translation Journal
Ending Ledger
The following table shows the ending ledger amounts after you run the translate process for reports:
| Account | Foreign Currency | Foreign Currency Balance | Report (USD) |
|---|---|---|---|
|
2001 |
CHF |
29.7 |
17.9685 |
|
8001 |
CHF |
–29.5 |
–17.76 |
|
Gain/Loss |
CHF |
–0.2 |
–0.121 |
|
Translation Adjustment |
CHF |
0 |
0.0875 |