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    Sigrid Buitelaar
    Using reporting currencies with month-end exchange rate
    Topic posted November 4, 2019 by Sigrid BuitelaarGold Medal: 3,500+ Points, tagged Financials, General Ledger, Period Close / Reconciliation 
    28 Views, 2 Comments
    Title:
    Using reporting currencies with month-end exchange rate
    Summary:
    Using reporting currencies with month-end exchange rate
    Content:

    Hi there

    Customer has a reporting currency with currency conversion level ' journal'  and with error handling set at 'report error'. This would imply for an error to be reported in case of a missing conversion rate.

    Customer's primary ledger is in EUR and one of the reporting currencies is USD. We are now noticing that when an EUR transaction is entered in the EUR ledger, on a day when no EUR to USD exchange rate excists, the transaction is not even posted in the EUR ledger despite of the fact that the conversion EUR to USD would only be required for posting the reporting currency. 

    Is this indended functionality? Wouldn't the conversion level 'journal' mean that one subledger transaction would create 2 separate journals, one in primary leger and one in reporting currency? 

    The company has the business requirement to inquire on detailed (subledger) transactions in reporting currency, however the actual exchange rate is not available until monthend. To enable detailed inquiry the choice was made to use a reporting currency. If the transactions would be posted throughout the month in the PL and only once a month, but with detail, in reporting currency, this would suffice. What would be another way to achieve this result?

     

    Version:
    13 19C

    Comment

     

    • Thomas Paul

      Hi,

      It is intended functionality. When you are trying to post in the EUR ledger, the system will try to replicate that in USD ledger as well(since Conversion level is Journal). If there is no rate defined, it will error out.

      "Wouldn't the conversion level 'journal' mean that one subledger transaction would create 2 separate journals, one in primary leger and one in reporting currency? 

      No- to achieve this, you need to set the Conversion Level as Subledger. That will create 2 journals

      Thanks.

      Thomas

    • Sigrid Buitelaar

      Thank you, that clarifies!