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    Sandeep Kumar
    Ledger in AED and BANK in USD (Difference amount...Answered
    Topic posted September 22, 2019 by Sandeep KumarSilver Medal: 2,000+ Points, tagged Cash Management, Financials, General Ledger, Payables, Period Close / Reconciliation, Setup / Administration, Subledger Accounting 
    36 Views, 7 Comments
    Title:
    Ledger in AED and BANK in USD (Difference amount end)
    Content:

    We have Ledger in AED Currency and Bank Account is in USD, Now month-end, when we translate the balances and Match closing balance of BANK and Translated Ledger (USD), Is not matching, is this because translation is happening on Closing balances (Functional Currency) and convert in USD on Period End Closing rate

    Now Can I achieve to match the GL USD Closing Balance with USD bank account closing balance

    Best Comment

    Pratik Bane

    Dear Sandeep,

    Revaluation can be done for a natural account. If you were using revaluation process for the account in question here, then the account should be revalued.

    Usually revaluation is run before translation. After translation the account balances are moved to the secondary ledger.

    Revaluation uses unrealized gain and loss account and translation uses cumulative translation account. This will split the rounding balance in these 2 accounts in your case.  

    If you were not using revaluation earlier and you decide to use it now, then you need to reverse the translation (in Fusion there is a ESS program to delete the translation) and go back to the first period where in you want to start to revalue. Afterwords you will need to complete the revaluation and then translation for each period till today.

    Hope this addresses your query!

    Regards,

    Pratik 

    Comment

     

    • Pratik Bane

      Hello,

      While running translation any rounding difference while translating the amount gets posted on cumulative translation adjustment account. Please check the balance on this account too. This should help you identifying the difference.

      Regards,

      Pratik

    • Krishnan Venkatachalam

      That is correct Sandeep. But it could also be caused due to spot rates used by your bank vs your ledger. I am not sure if the Journals are coming directly from the bank using Cash Management or if you have an external POS systems posting transactions.

      But as Prathik indicated this will need to be analyzed in the ReVal account.

      Regards,

    • Sandeep Kumar

      Thanks for response

      yes Difference is going in CTR account so is it better to run Currency Revaluation for foreign currency Banks accounts ?

      what would be the best way 

       

       

      • Krishnan Venkatachalam

        There is no currency reval for Bank Accounts. The bank does not revalue any balances. All are spot rates. Generally this has to be explained manually by the accountant on a monthly basis. There are some auto reconciliations available in Cash Management but unfortunately they may not work in this situation.

        Here is something I found on EBS. Give it a shot and see if that works
        https://docs.oracle.com/cd/E18727_01/doc.121/e13483/T359831T359834.htm

        Regards,

      • Pratik Bane

        Dear Sandeep,

        Revaluation can be done for a natural account. If you were using revaluation process for the account in question here, then the account should be revalued.

        Usually revaluation is run before translation. After translation the account balances are moved to the secondary ledger.

        Revaluation uses unrealized gain and loss account and translation uses cumulative translation account. This will split the rounding balance in these 2 accounts in your case.  

        If you were not using revaluation earlier and you decide to use it now, then you need to reverse the translation (in Fusion there is a ESS program to delete the translation) and go back to the first period where in you want to start to revalue. Afterwords you will need to complete the revaluation and then translation for each period till today.

        Hope this addresses your query!

        Regards,

        Pratik