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Foreign Currency Revaluation - FX zero balance and mgmt reporter

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Posted on by GinaK0079

Hello -

I have a few questions related to running the FX process in AX 2012.

Our main reporting currency is USD, but we do business in CAD as well, which is consolidated at month end into USD reporting value. At the end of each month, I run the FX process in both the US and Canadian entities on all asset, liability, profit and loss accounts.

1. When I run the FX process on an account that now has a zero ledger balance, why does it create an FCR entry for that month if there was no activity and the G/L balance is zero?

2. When I revalue the intercompany AR / AP accounts (mainly used for shared service management fees), my AR / AP is no longer in balance after the revaluation, causing the elimination on the consolidated balance sheet to leave a balance. Do I need to adjust the revaluation portion back out so the elimination will net to zero? Or do I leave it and adjust for it in our monthly workpaper as a separate line for "unrealized gain/loss"? (Having the same issue in other accounts, but this is a prime example)

3. I do monthly postings to adjust for the Cumulative Translation FX adj in a mock statistical ledger account to bring the consolidated balance sheet into balance at the end of each month when I run management reporter. I enter the value needed on the Canadian entity in AX in USD, then US in USD. When management reporter pulls the account data, it is converting the Canadian side that I originally entered in USD and converting it so that my output is not the exact number that I need. How do I standardize the account setup so that it pulls the exact number that I entered in USD on the Canadian side onto the management reporter reporting?

Your assistance is very much appreciated! Thank you!

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Ludwig Reinhard Microsoft Employee on at

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Hello Gina,

For 1: Can you provide an example that illustrates the FCR entry that is created? Some supporting screenshots would help here.

For 2: Also here, can you provide more details what is not in balance? Is it the GL vs. AR/AP balance that shows a variance in the reconciliation reports or do you refer to the management reporter report and a variance that you see there?

For 3: Don't you have the FX currency revaluation accounts included in your management reporter report? I do not understand what you are doing here exactly and why this cumulative adjustment posting is needed. Can you elaborate on what you are doing here and why? A simplified example and some screenprints would help.

Many thanks,

Ludwig

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GinaK0079 5 on at

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1. We cleared the account balance to zero in August. When I ran the FCR on all BS accounts in September it created an entry (which I reversed).

2. Deferring for now.

3. I posted the following entries in our CAD entity in USD, I expected the exact USD value that I entered to flow through to the balance sheet (via management reporter), but it looks like it is converting. How do I adjust that setting to get the value I entered below?

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Ludwig Reinhard Microsoft Employee on at

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Hi,

Unfortunately, I cannot open your and view your screenshots. They are too small. Anyway, here some comments:

For 1: How did you reverse the entry? At which data and what rate did you use? This might be one of the underlying issues, so please double check what has been corrected.

For 3: Can you check your main account setup? There is a currency translation option available for the management reporter and I wonder what you have selected there.

Best regards,

Ludwig

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GinaK0079 5 on at

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1. The reversal part is not the issue. I wrote off a small balance in the account at the end of August, which brought the G/L balance down to zero. When I view the account balances via Journal Entries > Period, the August balance is zero. Then, when I ran the FCR in August and Sept, it created an entry ... but what was it revaluing if the entire G/L balance for the month was zero?

3. It is set at the "Default" exchange rate type. The currency translation type is "Current".

If I may add one more inquiry:

4. When I run the consolidated balance sheet in management reporter, I have just one G/L account that does not pull the G/L balance correct. I am not sure what it is doing. On 10/17, the account pulled into the report and converted properly. Then, when I reran the BS on 10/21, it show the account balance off by $4 billion. I had our IT department rebuild the data mart, which generally resolved wonky issues like these, but this did not work. I checked the account and it is set up just like all the other balance sheet accounts that are pulling into the report correctly. What could be the issue and why would this be okay one day and then not work the next?

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Ludwig Reinhard Microsoft Employee on at

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Hello GinaK0079,

For 1: The reason why I asked was because AX is not translating and revaluating a balance on an account but rather individual transactions. Depending on what transaction you recorded and how this was done you can see a FX adjustment even if the balance seems to be $0 at the time the revaluation is run.

For 3: Please check the currency display options in the management reporter column definition. It might be this setting that gives you the result you see rather than what you want

For 4: Can you create a new report just with this single account that causes the problem? If you run this report and compare the balance with the one you see in the trial balance do you see the same result? Another thing that you can check is whether some filters that are applied in the management reporter cause this issue.

Best regards,

Ludwig

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