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Dynamics 365 Community / Forums / Microsoft Dynamics GP (Archived) / GP and Management Repo...
Microsoft Dynamics GP (Archived)

GP and Management Reporter CTA not posting balance sheet out of balance

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Posted on by Community Member

Hey All,

I've been searching the internet for a while now and haven't found an answer to my question and was hoping y'all could help me.

We have multiple entities set up in Dynamics. 

Two of the entities have functional currencies of EUR

One has a functional currency in GBP

Reporting currency is USD.

Using Management Reporter 12 when we run a balance sheet, no CTA is being calculated causing our balance sheet to be out of balance for each entity with foreign currencies.

I've calculated the difference and it is directly caused by the difference in currency rates at year end (spot rate) vs the Average rate for P+L accounts and historical amounts for certain Balance Sheet accounts.

I have ensured that we have not posted anything to the retained earnings account (or category) in any of the foreign entities which are out of balance.  I do, however, have beginning balance of retained earnings posted in our US entity, with no foreign currency translations, therefore it is not out of balance.

What am I missing? 

Please help!

TIA

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  • Suggested answer
    iruser2 Profile Picture
    iruser2 2,048 on at

    Chris;

    I have always had to make that difference (CTA = cumulative translation adjustment, part of other comprehensive income)

    I have also had to be careful to ensure that the Retained Earnings of these sub's stays at the exchange rate that was the spot rate for that year via Routines - Financial - Currency Translation

    To my knowledge MR will not calculate this difference by itself

  • Community Member Profile Picture
    Community Member on at

    Thank you for your quick response:

    I do have CTA set as an OCI account (category), if that's what you mean.

    The difference between year end spot rate and avg rate used in P+L should be hitting the Balance Sheet in the equity section not as a realized gain/loss on our P+L.  Is there a manual adjustment I have to make?  If so, how do I make a one-sided entry since I am in balance in the functional currency, but out of balance in the reporting currency?

    Retained earnings is staying at the year end rate for the prior year (I'm only at year 2 of our historical data input) so it appears to be working properly.

  • Suggested answer
    iruser2 Profile Picture
    iruser2 2,048 on at

    Hi Chris

    I have made the CTA be a calculated row on my income statement and never really posted it into GP, as you say that would result in a one currency entry, where there really should be two.  From your question it sounds like you are trying to get it into GP.

    perhaps this website helps?

    www.erpsoftwareblog.com/.../foreign-operations-consolidation

  • Community Member Profile Picture
    Community Member on at

    Hi iruser2,

    Thank you for the link, I have read that a few times in my previous research on the issue.  Thank you also for your input, it seems like this is something that management reporter/GP should be able to calculate for you, but from the sounds of it, it would be a manual calculated line in management reporter that would allow my balance sheet to show the CTA which would consist of the difference in spot rate vs avg rate for the P+L.  

    These differences are unrealized though and thus should be accounted for on the balance sheet not on the P+L.  Do you post these differences to your P+L, and if so, it seems that would still not fix my issue, since my balance sheet takes the Net Income for the year based on Rev - Exp per GP not the net income shown on the Management Reporter created P+L.

    Thanks again!

  • Suggested answer
    iruser2 Profile Picture
    iruser2 2,048 on at

    I have only ever shown them in MR not posted to the gl.  Whether balance sheet or income statement.

    No I have never attempted to post to a gl account for the reason you hold out.  I have used both unit accounts and budgets (two different employers approached two different ways) to hold the historic amounts of CTA so that I would only show current year CTA.

    Ultimately however the mathematics happens in MR not in GP.

  • kjjson Profile Picture
    kjjson on at

    How have you used the unit account for this? I entered an amount in a CAD company, but when I have the column convert to USD, that line and amount don't show up? does it need to be in a separate column?

    Thanks, Kevin

  • iruser2 Profile Picture
    iruser2 2,048 on at

    Hi Kevin

    If you have a CAD parent company with a USD sub the CTA should only appear on the CAD parent company statements.  I would not expect to see it when you then try to print the statements in USD so i would not expect it to translate.  MR looks to Multicurrency set up for how to translate an account when you do consolidations.  Unit accounts do not have a translation set up.  So even if you would expect a translation MR / GP could not do it.

    sorry

    ian

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