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Question from Amy_Johnson on Sep 15 at 1:26 PM Hi there,
I would like to try to understand how SAP consolidates results in different company currencies in the context of accruals. If an accrual is raised at P1 at FXrate1, the P&L is consolidated using that rate. If the accrual is reversed in P2 at FXrate1, and then reaccrued at FXrate2 (or, indeed, invoice is recognised at that rate), then on consolidation the YTD expense will be at FXrate2 not FXrate1, which is what is required under IFRS consolidation. I understand that this is different if you are just doing functional currency reporting (you would want to have a true-up of the expense with the new rate), however, for consolidation purposes, we would want only the movement in the functional currency revalued, which, in P2, is nil (assuming you accrue the same/invoice = accrual).
One more bit of potentially useful information is that SAP's Group Currency functionality is used to perform consolidation, as opposed to a consolidation package (not sure if SAP offers that as a separate product, and whether that would then consolidate differently).
Any help with this would be much, much appreciated as this is confusing me a lot.
Many thanks,
Vera
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