The reporting currency functionality is a separate application, called RCU, and must be activated in Work with companies.
The reporting currency has been introduced to ease the transition to a single currency for participating member states within the EU.
The single currency (EURO) will replace the currencies used by the participating member states.
The reporting currency is an additional system currency that is automatically updated (no manual intervention needed). The reporting currency is calculated during update to the General Ledger.
With the reporting currency function you are able to make enquiries and obtain listings on both balances and transactions in reporting currency on all three ledgers. For analysis purposes you can also use DC1 Report Writer to create reports in reporting currency.
The calculation of the reporting currency is done in two steps:
- The transaction currency is converted into system currency.
- The system currency is then translated into a reporting currency using an exchange rate defined in the Work with exchange rates program.
- Let the system automatically adjust the largest transaction within the voucher.
- Create a separate posting for the difference. The posting will have a transaction and system amount of 0.
Small rounding variances may occur during conversion on voucher level in the G/L. The following two options are available. You can either:
This balance transaction will receive the unique document type you have connected to system document type RPB.
Tip: By using this document type as selection criteria in listings and enquiries after the conversion, you can easily identify the newly created rounding transactions. This system document type is pre-loaded in new installations.
If you have defined pseudo account XREPORT, then the system will know that you want to balance the voucher. See About working with pseudo accounts for additional information.
Reporting currency handling
There are two ways of handling the reporting currency:
- With a fixed exchange rate. (Applicable during the transition period when reporting currency is an EMU currency.)
- With a variable exchange rate.
When reporting currency is an EMU currency
The functionality remains unchanged. The reporting currency’s exchange rate is fixed.
This case is applicable during the EMU transition period.
The reporting currency amounts will be stored only in the G/L. In listings and enquiries for other applications (DIS, A/R, A/P) the reporting currency’s amounts are computed dynamically using the fixed exchange rate.
When reporting currency is a non-EMU currency
When the reporting currency is a non-EMU currency, for example USD, a variable exchange rate is introduced in DC1.
Still the reporting currency amounts are stored only in the G/L. Reporting currency amounts will not be displayed or listed in other applications (DIS, A/R, A/P). This is because the used exchange rate is not saved and thereby reporting currency amounts cannot be computed.
The reporting currency amount will be created at the time of batch/journal update. Retrieval and validation of the exchange rates will be based on the following parameters:
- The default for reporting currency period and level from the G/L control file.
- The document dates for the transactions in file SROOVF.
Two types of errors can exist:
- Exchange rate is missing.
- Exchange rate records exist, but the field level is blank.
You will be informed about the errors with an error journal or a message in journal maintenance. Correct the failing exchange rate and update the journal again.
Enquiries and printouts
- G/L transaction enquiry – contains all the updated postings in the General Ledger. These amounts can be seen in system, reporting and transaction currency.
- G/L transaction details enquiry – contains detailed postings from the G/L transaction log file. These amounts can be seen in system, reporting and transaction currency.
- Balance enquiry – contains information on balances and budgets for accounts and summary identities, according to any of the user defined levels on which they are stored in the system. These amounts can also be seen in reporting amount.
- A/P transactions and balances – contains details and settlement information for all A/P transactions that have been entered. The original and remaining amounts can be seen in transaction, primary, system and reporting currency.
- A/R transactions and balances – contains details and settlement information for all A/R transactions that have been entered. The original and remaining amounts can be seen in transaction, primary, system and reporting currency.
- A/R portfolio accounting enquiry – contains details of the remaining amount in transaction, primary, system and reporting currency. This enquiry can be reached through the A/R portfolio enquiry.
- G/L list – displays all transactions in the General Ledger. The list can be printed in either transaction amount or reporting amount.
- G/L transaction list – displays details for the updated postings in the G/L.
- G/L transaction log file printout – displays G/L transactions on a detailed level. The printout will list amounts in reporting, system and transaction amount.
- A/P transaction list – displays details for all A/P transactions that have been entered. A number of sequence and selection parameters are available, to give you the list that is relevant for your needs. The remaining amounts can be seen in transaction, primary, system and reporting currency.
- A/R transaction list – displays details for all A/R transactions that have been entered. A number of sequence and selection parameters are available, to give you the list that is relevant for your needs. The remaining amounts can be seen in transaction, primary, system and reporting currency.
Note: When reporting currency has a fixed exchange rate, amounts in reporting currency are printed in A/P, A/R, DIS, etc. When reporting currency has a variable exchange rate, the amounts in reporting currency are hidden. They are not printed.