Hello Martin B Jensen,
Thank you for posting on the Microsoft Dynamics BC and NAV forum. I hope you are enjoying a nice summer so far.
The key with foreign currency consolidation is that you must make sure that the Manual/Average Rate (Used for Income Statement), Last Closing Rate, and Closing Rate (both used for Balance Sheet Accounts) on the Business Unit are correctly set prior to the consolidation. If the company is using Historical Rate Type on the account, then it will look at the currency Table for the date of the exchange rate closest to the transaction Posting Date in the subsidiary.
Just to kind of cover the flow. Typically, I would presume that monthly consolidations are completed. Therefore, as you enter the monthly date range to be consolidated, the system will complete the following:
1. For Balance Sheet Accounts set to Closing Rate in the Subsidiary, take the Net Change in Subsidiary Currency balance for the monthly period * Closing Rate as the first entry keeping Debit Balance and Credit Balance consistent.
2. For Balance Sheet Accounts set to Closing Rate in the Subsidiary related to the end balance of the previously consolidated period, the system will create an entry to adjust the Debit Balance and an entry to adjust the Credit Balance to equal the new Closing Rate value by taking the difference between Last Closing Rate and Closing Rate value.
3. For Income Statement Accounts, take the Net Change in Sub Currency * Manual/Average Rate on the Business Unit Card.
4. Note: No Adjustment is made to Income Statement Account balance from previous period because an Average/Manual rate is used for each period
5. Historical – take Sub Currency Amount * the specific Currency Exchange Rate closest to the Date of the original transaction in the subsidiary. Balance is not adjusted to the latest exchange rate value.
6. Composite and Equity – similar to historical, although the value can be made up of different exchange rates, particularly with Retained Earnings because of the nature of the entries posted to the account. The key is that no adjustment of prior period to current period exchange rate is completed.
7. Finally, balancing entries are created to the Exchange Rate G/L accounts on the Business Unit > G/L Accounts Tab to manage the different exchange rates and amounts to keep Debits and Credits in balance by subsidiary.
The above is the flow of transaction calculations.
The Consolidation Documentation for multiple companies can be found at the following:
docs.microsoft.com/.../finance-consolidated-company-reporting
I hope this helps move the processing forward.
Best Regards,
Tom
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