Exchange Rate Differences And Conversion differences
Hi good people,
I need some consulting help on the use of the Exchange Rate Differences And Conversion differences functionality in business one.
From what i've read,
Exchange differences is used to correct the LC against the FC in a multi currency BP and or GL Account usually on a monthly basis.
Conversion Differences is then used to convert/correct the SC against the corrected LC after running the exchange differences.
Both of these programs, run/correct/convert against the prevailing Exchange rate on date of execution as in the Exchange Rate table.
My problem is that i have a client using LC - Kenya Shilling (KES) and SC - US Dollars (USD), Exchange rate is updated/changed Daily and fluctuations occur all the Time.
Most BPs are USD (Foreign Currency) and as such, Exchange Rate and Conversion Differences are run every month. With postings made to the configured P&L accounts.
This accounts have over the years accumulated lots and Lots of amounts - which i guess is expected.
The first problem is that the P&L accounts due to the nature of Conversion difference Postings (SC JE posting Only, NO FC and/or FC Entry) Only is off. In that the SC and LC rate is very wrong.
This as a result affects the P&L reporting if the company would like to do reports in both LC and SC - They do not Match (conversion/Exchange Rate) with Low USD Profit as compared to higher KES profit.
This cannot be corrected by running either Exchange Rate/Conversion Differences as this functionality is for Balance Sheet Accounts only.
The second Problem/query is - Are the Exchange Rate/Conversion Differences supposed to revalue/calculate all transactions since DB/Company Begin as opposed to the month transactions as this process is done monthly. Is there any way of restricting entries to be evaluated
If my general understanding of the problem/function(s) may be incorrect - Please clarify
Your assistance will be greatly appreciated!
Edited by: Claudio Maragia on Sep 23, 2008 3:16 PM