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44Hello,
I am in need of understanding how to work with foreign currency revaluation as it relates to online consolidation. I have been thrust into an organization where the users do not have understanding for the configurations or processes that are in place in the Finance environment since years back (employee turnover+lack of handovers).
I am in need of understanding how to work with foreign currency revaluation as it relates to online consolidation. I have been thrust into an organization where the users do not have understanding for the configurations or processes that are in place in the Finance environment since years back (employee turnover+lack of handovers).
I have an environment where a consolidation LE is set up and a Consolidate online batch job is running once a day. There are transactions from about 30 Legal entities and 20 different currencies being consolidated. The criteria for transactions to consolidate is set up as following:
The currency translation tab has the following is set up, where the exchange rates in "Default" exchange rate type is updated daily.
The organization is not currently running foreign currency revaluations in the respective LEs nor in the consolidation company. I would venture to guess that what they need to do is establish a process for FX revaluation in each LE and this should result in a consolidation where the account balances are correct. But the Microsoft documentation has me questioning if the revaluation that they are referring to is initiated in the originial LE or if it is run via the consolidation company.
What is the recommended process here? And if the daily consolidation company imports transactions from another accounting currency but it "translates" it using the daily exchange rate type does that not mean that the consolidated balances are correct?
Thanks in advance,
Oskar
The organization is not currently running foreign currency revaluations in the respective LEs nor in the consolidation company. I would venture to guess that what they need to do is establish a process for FX revaluation in each LE and this should result in a consolidation where the account balances are correct. But the Microsoft documentation has me questioning if the revaluation that they are referring to is initiated in the originial LE or if it is run via the consolidation company.
What is the recommended process here? And if the daily consolidation company imports transactions from another accounting currency but it "translates" it using the daily exchange rate type does that not mean that the consolidated balances are correct?
Thanks in advance,
Oskar
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