1. Multicurrency Processing Implementation Guide
  2. How the Balance Restatement Program Works

How the Balance Restatement Program Works

To restate balances, the Compute Restated Balances program:

  1. Uses the data selection to select only those companies that have been assigned the computation ID that is entered in the processing options.

  2. Reads the F0902 table to find a beginning balance and period amount in the actual amount (AA) ledger for each GL account in the range of accounts for the specified company.

  3. Applies calculations based on the calculation method, as follows:

    • Period calculation balances for period 1 using the formula ( APYC + Current Period Posting) x Current Exchange Rate – (APYC x Prev Year Exchange Rate). The system updates beginning balances, restates the balance for the current period, and clears all periods after the current period.

      Note: This formula for period 1 calculation is irrespective of the current period 1 posting being a zero or a non-zero amount. It is to adjust currency exchange rate difference into period 1.

    • Period calculation balances for a selected period other than period 1. The system leaves previous balances as is, restates the balance for the current period, and clears all periods after the selected period.

    • Year-to-date balances for selected periods. The system restates balances for the selected periods and clears all periods after the selected period.

      Important: Make sure that you restate balances up to and including the appropriate month and not beyond. If the current period is June, restate the year-to-date balances for January through June.

    • Amounts for a monetary account. If the currency associated with the destination ledger type matches the currency assigned to the account, the system uses the amounts from the foreign currency (CA) ledger instead of restating amounts from the AA ledger.

  4. Creates or updates the destination ledger, usually ledger type AC (consolidation ledger), in the F0902 table.

    Note: If you ran the annual close for the AC ledger, the system updated the APYC and APYN fields in the AC ledger at that time. The system calculates retained earnings if the Close to Retained Earnings Account check box on the Ledger Type Rules Setup form is selected for the AC ledger.