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Currency Conversion Rate between AP and PA Transactions and Rate used in FA Tax Books

  • 1.  Currency Conversion Rate between AP and PA Transactions and Rate used in FA Tax Books

    CO19 Speaker
    Posted 07-17-2020 13:41
    When utilizing a secondary FA ledger to report assets in a different currency, assets DO NOT convert into the tax book utilizing the SAME currency exchange rate on either the AP invoice or with PA transactions. If I enter an AP invoice today with a date of 7/1 and then run the Mass Additions Create of a GL Date of 16-JUL-2020, the default DPIS on the Mass Add in the corp book will be 16-Jul-2020. When I copy to the tax book (secondary FA ledger), the DPIS date is used to get the currency conversion rate and of course that DOES NOT equal in the AP invoice
    conversion rate. The result here is you have a mismatch between what goes in the asset clearing account dollar-wise from AP and what will be journalized out of the clearing account from the Secondary currency FA tax book (we are sending all FA txns to a secondary GL ledger). Has anyone been able to figure how to get FA to use the currency conversion rate as contained in the AP invoice? Also, what about transactions coming from PA. The same issue exists here.

    I have seen documents saying that both ledgers (GL primary and secondary) need to be MRCed (having an additional reporting currency). This did not work.

    Another article says to create two primary GL ledgers, one with MRC the other not. Tie your corp asset book to the ledger without MRC and your tax book to the ledger with MRC (reporting Curr). Of course you tie your tax and corp books together. This doesn't work either. Yet another article says that if the Corp book and the tax book have reporting ledgers, then FA will pick up the conversion rate from the CORP book. I tried that too. No success.

    Has anyone had any success? This has to work, otherwise having a secondary currency FA tax ledger is worthless as the conversion rates between AP FA invoices and PA items coming to FA will NEVER match conversion rates used in the tax book due to FA using the DPIS when you copy to the tax book and of course the DPIS likely does NOT match the conversion date used in AP or PA.

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    Donna DuBois
    Business Systems Analyst
    ViaSat
    Carlsbad CA
    (760) 893-1911
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  • 2.  RE: Currency Conversion Rate between AP and PA Transactions and Rate used in FA Tax Books

    CO19 Speaker
    Posted 09-10-2020 17:05

    I wanted to make an update to this thread.  We were finally able to get the dollar amounts coming from AP and PA to reflect properly when you are using a secondary Fixed Assets book (defined as a tax book) that is in a different currency.  I also want to note you can accomplish the same functionality WITHOUT using a secondary FA book (tied to a secondary GL ledger) by simply adding a reporting ledger to your primary GL Ledger.

    What is important however, is the order of operations.  It doesn't matter whether you go with just your primary GL ledger with a reporting ledger in another currency (defined with subledger detail between the two) or if you go with primary GL ledger, secondary GL ledger, reporting ledger and a CORP book and secondary (tax) book.

    A reporting ledger is REQUIRED IN BOTH scenarios above.  Furthermore, ALL GL objects....primary GL ledger, secondary GL ledger, reporting GL ledger (in another currency), MUST MUST MUST all be defined BEFORE you define your FA Books (regardless of whether you're going single FA book and just gl primary and reporting OR primary and secondary GL and reporting...along with corp FA book and secondary FA (tax class/tied to secondary GL ledger).

    Nowhere can I find where this is explicitly stated.  We had created primary and secondary GL ledgers, then defined FA Corp and FA Tax (secondary currency books.  After that we added the reporting ledger in GL.  This will not work.  All GL configuation must be complete before any FA book is defined.  This is because there are attributes on the FA books that are set at creation.  If no reporting ledger is tied to your primary gl ledger at FA book creation, those attributes won't be set correctly in the FA books and never will be.



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    Donna DuBois
    Business Systems Analyst
    ViaSat
    Carlsbad CA
    (760) 893-1911
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