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I'm a finance director looking to purchase NAV 2015 (Starter and Extended pack) and am having a bit of trouble understanding how to map NAV's currency capabilities (e.g. ACY and LCY) and consolidation capabilities (e.g. consolidation companies and business units) onto the accounting concepts of transactional currency, functional currency, and presentation currency.
Here's a simplified version of my challenge:
Company 1 - Australian Subsidiary
1) Functional currency - AUD
2) Transactional currencies - AUD, USD, EUR
3) Presentation currencies - AUD (to Australian regulator), USD (to equity holders), GBP (to UK parent company also held ).
Company 2 - GBP holding company (owns company 1)
1) Functional currency - GBP
2) Transactional currencies - GBP, EUR, AUD
3) Presentation currencies - GBP (to UK regulator), USD (to equity holders)
Here are the pieces of the puzzle I've been able to determine so far.
- I can create a consolidation company (call it "Company 1 Consolidated" which consolidates (as business units) Company 1 and Company 2.
- I can establish the rules by which currencies are handled during consolidation (e.g. set up a rule so that Company 2 consolidates into Company 1's financial currency using the current closing rate for assets and liabilities and historical average rates for performance statement accounts).
Can someone point me to a basic primer on how I'd do something like this?
Thanks,
Mike
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Nevermind ... search function often useful. Beyond this blog post, I'll just need to set up a consolidation company in the other presentation currencies that has one business unit: the consolidation company in the first presentation currencies.
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