Hi Can Anyone tell me a bit more about the way consdolidations with exchange rates work. IT asks for the P&L and B/S rate… does it calculate it differently? i.e. for P&L calculates on the monthly movement and for B/S it looks at last months balance and exchange rate??? Would really appreciate any help on this… Thanks
The consolidation setup does not necessarily ask for a balance sheet and an income statement exchange rate. One field or no fields will be changeable depending on your currency set up. In General Ledger > Setup > General > Currencies, Press <Exch. Rates>, there is a column, ‘Fix Exchange Rate Amount’. If you set it at ‘Both’, going to the consolidations business units, you will be unable to adjust any rates. The field that you can change will change if you change the selection from currency to relational currency. Our users tend not to want to adjust any rates but in an instance where you are using triangulation of exchange rates (for example, in Canada, if a company uses Bloomberg rates, they are all against the US dollar. When the company wants to consolidate a British sub using GBP’s, the triangulated rate may not be the one they want to use) it is nice to be able to adjust the rate just for consolidation purposes.