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How does GP 2013 handle Average Exchange Rate calculations?
I have a client using GP 2010 and Management Reporter. They enter Quarterly Exchange Rates for the P&L accounts. For their YTD P&L report, the system calculates the following (assume all P&L accounts are using the "Average" currency translation type):
Any transactions which fall in Q1 are calculated at the Q1 rate
Transactions in Q2 date range are calculated at the Q2 rate
Transactions in Q3 date range are calculated at the Q3 rate.
All of those totals are added together to compile a translated total for the YTD. So, here is an example (GBP to USD):
Q1 - Exchange rate is 1.6548 - Total Q1 trx in GBP - 240,000 pounds - Converted to USD - $397,152
Q2 - Exchange rate is 1.6824 - Total Q2 trx in GBP - 446,000 pounds - Converted to USD - $750,350.40
Q3 - Exchange rate is 1.6707 - Total Q3 trx in GBP - 240,000 pounds - Converted to USD - $400,968
When I run a quarterly Periodic P&L, the amounts show as they should (converted based on the quarterly rates and amounts above).
When I run a YTD P&L, the amounts essentially are converted by quarter, then added up to give me a YTD total (YTD P&L for Q3 shows $1,548,470.40). This sounds correct, but my client wants the YTD rate to be taken as an average of all 3 quarters rates.
So the Q3 rate should be 1.6693 (Q1 rate of 1.6548 + Q2 rate of 1.6824 + Q3 rate of 1.6707 divided by 3), which would calculate the Q3 YTD amount to be $1,545,771.80.
I realize this would mean that the individual quarters won't tie to the YTD, but that's the way the client wants to do it.
I know the average rate calculation has changed in GP2013, but can anybody confirm that the average will calculate as I need it to above once we go to GP2013?
I realize this is a lot of very detailed information, but I cannot seem to find out how it will react.
I appreciate any input you could provide.
Drew Nelson
FTG, Inc.
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