Conversion
When you enter a journal, General Ledger automatically converts any foreign currency amounts to your ledger currency. When you post journals, the converted amounts update your accounts standard balances. At the same time, General Ledger updates the corresponding aggregate balances for both your entered (foreign) and converted (ledger) currencies. These balances are used to compute your average balances.
Revaluation
When you revalue a balance sheet account that is denominated in a foreign currency,General Ledger automatically creates a journal entry to record the unrealized foreign exchange gain or loss. When this journal entry is posted, General Ledger updates both the standard balance and the corresponding aggregate balance of the revalued account.These updated balances are factored into the calculation of the account's average balance.
Translation
If you have average balance processing enabled, and choose to translate your accounts for consolidation or reporting purposes, General Ledger will translate both standard and average account balances to a balance-level reporting currency you specify as the reporting currency during Translation. You can translate both balances separately or in a single translation run, as part of the month-end cycle. General Ledger maintains translated balances in your balance-level reporting currencies for each day of an accounting period. When translating each day's average balances, the system multiplies the ledger currency average by the average of the daily conversion rates for the period, up to and including the current day.
When you enter a journal, General Ledger automatically converts any foreign currency amounts to your ledger currency. When you post journals, the converted amounts update your accounts standard balances. At the same time, General Ledger updates the corresponding aggregate balances for both your entered (foreign) and converted (ledger) currencies. These balances are used to compute your average balances.
Revaluation
When you revalue a balance sheet account that is denominated in a foreign currency,General Ledger automatically creates a journal entry to record the unrealized foreign exchange gain or loss. When this journal entry is posted, General Ledger updates both the standard balance and the corresponding aggregate balance of the revalued account.These updated balances are factored into the calculation of the account's average balance.
Translation
If you have average balance processing enabled, and choose to translate your accounts for consolidation or reporting purposes, General Ledger will translate both standard and average account balances to a balance-level reporting currency you specify as the reporting currency during Translation. You can translate both balances separately or in a single translation run, as part of the month-end cycle. General Ledger maintains translated balances in your balance-level reporting currencies for each day of an accounting period. When translating each day's average balances, the system multiplies the ledger currency average by the average of the daily conversion rates for the period, up to and including the current day.
No comments:
Post a Comment