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Reply from Nikki Klein on Sep 21 at 5:10 PM Hi Pankaj
US GAAP requires:
1. Asset accounts are translated at historical rates (ie the rate on the date the asset was capitalized). Usually this means we don't translate those accounts at all, and leave them alone.
2. The Balance Sheet adjustments accounts are NOT translated or valuated, no. Leave them out of the configuration and out of the variants for FAGL_FC_VAL.
3. No. FAGL_FC_VAL is used to re-value the open item managed accounts that are posted to in non-local currencies, and any cash accounts held in non-local currency. That's all. FAGL_FC_TRANS is then used as the next step, to translate the balance sheet and income statement's amount in local currency to group currency, using new rates. For US GAAP, that means the balance sheet accounts (excluding Asset accounts, Accumulated Asset Depreciation accounts, the balance sheet adjustment accounts from the FAGL_FC_VAL step and Equity accounts) are translated at Month End Rate, and the income statement accounts (excluding Asset Depreciation Expense accounts and the FX Gains / losses expense accounts) are translated at a Average Rate. Typically we use FAGL_FC_TRANS for company codes that have a local currency that is NOT the same as your group currency, only.
4. I've never needed to use the Delta logic, so would need to research that one.
Nikki
| | | ---------------Original Message---------------
From: pankaj83
Sent: Saturday, September 19, 2015 1:03 AM
Subject: Discussion on Foreign Currency Valuation
Hi all,
I have few questions regarding foreign currency valuation & translation i.e. FAGL_FC_VAL & FAGL_FC_TRANS.
a) Is Asset account always translated not valuated i.e. through FAGL_FC_TRANS not FAGL_FC_VAL?
b) Are shadow accounts/balance sheet adj 1 account mentioned in OBA1 valuated as well? In my view only main account (reconciliation or Open Item Management) to be valuated in this case.
c) Are normal G/L accounts (without reconciliation or Open Item Management) valuated as well. If yes does these accounts need shadow accounts/balance sheet adj 1 account. I think they are valuated but not required any shadow account.
d) What is delta logic in Foreign Currency Valuation? why it is required?
e) Are Profit & Loss accounts valuated as well?
Please advise. A healthy discussion would be appreciated.
Regards
Pankaj |
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