Create Currency Balance Adjustment Voucher - Parent Company

Explanation

This activity is used to create a voucher with regard to the currency balance adjustment. This activity calculates the currency difference for all periods prior to the selected period and the year. The Currency Balance Adjustment activity results in a voucher belonged to function group C being created and placed in the parent company's hold table. 

Prerequisites

Before creating the currency balance adjustment voucher in the parent company, the following must have been completed:

• The parent company must have consolidated the period for which the currency balance adjustment should be done. In both the Parent Consolidations and Subsidiary Consolidations windows there must be a line with status Normal for Consolidation Type and with the Balance Consolidated check box selected, for that period of the subsidiary.
• The parent company must have done the currency balance adjustment for the previous period of the subsidiary. In both the Parent Consolidations and Subsidiary Consolidations windows there must be a line with status Currency Adjustment for Consolidation Type and with the Balance Consolidated check box selected, for the previous period of the subsidiary. This does not apply when the currency adjustment is done for period one.

System Effects

• As a result of the activity, a voucher belonged to function group C is created automatically in the parent company’s hold table in IFS/Accounting Rules.
• In both the Parent Consolidations and the Subsidiary Consolidations windows a new line appears with status Currency Adjustment for Consolidation Type column and with the Balance Consolidated check box selected for the time period of the subsidiary being considered.

The activity can be reversed via the Rollback Currency Balance Adjustment operation in Parent Consolidations.

Window

Parent Consolidations
 

Related Window Descriptions

Start Balance Consolidation

Procedure

Use the following procedure to start the currency balance adjustment.

1. Make sure that you are in the parent company
2. If any account should be excluded from the currency adjustment, enter such accounts in Exclude Accounts from Currency Adjustments. (E.g. Equity accounts such as share capital and reserves). This is required only if the parent company and the subsidiary keep accounts in different currencies.
3. Select the Parent Consolidations window and select a line has the Balance Consolidated check box selected and status Normal for Consolidation Type. Make sure that the currency balance adjustment has been done for all prior periods.
4. Select the Start Currency Balance Adjustment operation. The activity starts with a dialog box. All data are fetched from the source raw that is selected from the Parent Consolidations window. No Subsidiary Information can be changed and in the Parent Information area, only the User Group, Voucher Type and Voucher Date fields can be modified. In the Accounting Currency Information area, you can enter values in the Balance Currency Rate Used for Current Period and Balance Currency Rate Used for Previous Periods fields only if no data exists in the source row.
5. Confirm the information.

NB: Even if the parent and the subsidiary keep accounts in the same accounting currency, this activity should be performed. The only difference is that since the currency rate difference is zero, no voucher is created.