OATUG,
I have a requirement that I have not had before and I am having a very difficult time figuring out a solution.
Client is setting up operations in UK. They are a US Company. They have opted to observe ASC 830 by:
1. Setting up the UK in the GBP Ledger
2. As Intercompany will not be settled on a regular basis, they want to treat as equity which means it will translate at the PTD Average Rate which is typical for Owners Equity. The customer is using AGIS which requires an Asset for the receivable and a liability as the Payable. To effectuate this, we defined a very simple allocation to reclass the I/C Accounts to an Equity Account each month. Translates exactly as the client wants.
3. On the US Side, AGIS transactions come over as entered, in GBP. The issue is at month end, when we run revaluation, Oracle uses the YTD weighted average, which is not the same as what is being used in the UK Ledger and lo and behold, we have IC variances due to FX.
I have considered enforcing Global Currency of US, as the documentation says that eliminates the issues however the translation to get back to USD for GBP still must occur so I don't see how that helps but willing to consider.
I have been an OATUG contributor for 20 years and never asked a question (answered quite a few) so I'd really appreciate an assist on this. I have to believe I am missing something obvious.
Thanks
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Thomas Simkiss
Director of Cloud Solutions
Creoal Consulting
Bethesda MD
(844) 621-9127 x403
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