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Hi There,
I'm trying to consolidate a USD company, EURO Company and a CAD company. my consolidation currency is USD
I created a USD consolidation company and created my Business Units. I selected the currency exchange rate to be coming from the business unit.
when I run consolidation, only the USD company gets consolidated whereas the EURO and CAD ones give me this error "Balance Currency factor have a code can not be zero or empty ". not sure what am I missing
Thanks
Ola
Hi Andy,
Thank you so much for your reply.
This is very helpful. I really appreciate the detailed answer and the screenshots
I managed to consolidate the companies. but still I m unclear about a couple of things regarding translation rates.
from my understanding, in the business unit if Currency exchange rate table = Business unit, Then the Consolidation will read the rate from the Business unit , and we can set the rate on the screen you showed above. and which rate to be used for each account is defined on the account level in the chart of accounts.
but what if we chose currency exchange rate table = Local. That should mean that the exchange rates will be picked up from the consolidation company. In that case how will different rates come in play and how will the translation types that we select on the Account level make a difference?
Also, on the account level, there are Equity rate and composite rate, if I chose those rates, where will the rate come from?
Thanks
Ola
Hello Ola - In the Consolidation company open the Business Unit List and make sure they have entered the appropriate value for all three exchange rates under Navigate > Exchange Rates: Average Rate (Manual), Closing Rate, Last Closing Rate. Was this done? Here’s the description of these rates from the documentation:
| Exchange rate | Typical use |
| Average Rate (Manual) | You manually calculate the average rate for the period to consolidate. Calculate the average either as an arithmetic average or as a best estimate, and specify the result for each business unit. Used for income statement accounts. |
| Closing Rate | Used for balance sheet accounts. |
| Last Closing Rate | The rate that was valid in the foreign exchange market on the date for which the balance sheet or income statement is being prepared. You enter this rate for each business unit. Used for balance sheet accounts. |
Once the Consolidation is ran the next month’s consolidation will also need to be prepared in a similar manner (I typically see Average and Closing set as the same rate):
If they are not able to edit the Rates, I believe this has to do with a setting on the Exchange Rates in the Consolidation Company. To resolve this please do the following:
A. In the Consolidation company, go to Currencies, select the currency you working with and go to Process > Exchange Rates.
B. The last column “Fix Exchange Rate Amount”, you likely have this column set to ‘Both’ and you will want to change this. Here are the results of changing this column.
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André Arnaud de Cal...
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