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We are trying to setup multi currency consolidation and seem to hit one wall after another. The latest question (of Many) from my finance team requires following/reproducing the following steps:
- we have a singapore (company SIN) entity with a functional currency of SGD, US entity (INS) with functional currency of USD, and a Consolidation entity (CON) in USD.
- Ran exchange adjustment (USD to SGD) in Singapore entity for balance sheet accounts only. The exchange adjustment trued up the prepaid and intercompany balances in Singapore (the only 2 balance sheet accounts in SIN) to reflect any entries originally recorded in USD (translated in AX using the prior month end rate – last rate entered into the system) to be reflected in SGD at the current month end rate. Offset went to FX gain/loss account in the P&L.
- Printed out SIN TB in SGD
- Printed out INS TB in USD
- Ran consolidation in Consolidation entity for balance sheet and P&L accounts (ran BS and P&L individually).
- Ran exchange adjustment (SGD to USD) in CON for balance sheet accounts only.
- Printed out CON TB in USD
- Translated SIN TB in SGD to USD using month end rate for balance sheet accounts and month average rate for P&L accounts
- Added USD TBs for SIN and INS and compared to CON for variances
- Noted that the consolidated prepaid account reflected only the SIN prepaid balance prior to the adjustment made in the SIN exchange adjustment process. INS had no prepaid balance, therefore the CON balance should only be SIN. Why would the consolidation not include the exchange adjustment run in SIN for amounts originally recorded in the Singapore entity in USD?
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