Reporting currency: Currency conversion date?

[archanadixit]

Hi All,

My question is on R12 General Ledger Reporting Ledger.

When I create a journal in GL in the primary ledger which has a reporting ledger associated to it say with the following information:
Currency: USD (Functional Currency)
Effective Date: 21-08-2009

What date will be used to convert this to INR (Reporting currency)?

Another example would be a foreign currency journal:
Currency: ITL (Functional Currency)
Effective Date: 21-08-2009
Currency Conversion Date: 20-08-2009

What date will be used to convert this to INR (Reporting currency)?


Same questions for transactions from subledgers (AP and AR).

Appreciate your help.

Thanks,
Archana

[tgs100]

<b>When I create a journal in GL in the primary ledger which has a reporting ledger associated to it say with the following information:
Currency: USD (Functional Currency)
Effective Date: 21-08-2009
What date will be used to convert this to INR (Reporting currency)?
</b>

The conversion date used in the journal (unless you changed it manually, it will be same as effective date) will be used to convert to INR.

<b>Another example would be a foreign currency journal:
Currency: ITL (Functional Currency)
Effective Date: 21-08-2009
Currency Conversion Date: 20-08-2009</b>

Here again, currency conversion date will be used to convert to INR.

Cheers,
Saravanan TG

[tgs100]

For subledger transactions, it depends on the conversion method.

If the conversion method is "Journal', then conversion will happen based on the journal conversion date. Conversion will happen only during posting of JV

If the conversion method is 'Subledger', then the conversion will happen
a. based on the GL date for functional currency transactions
b. based on the exchange rate date of the transaction for foreign currency transactions.
In this case, conversion will happen during accounting of the subledger transactions.

Cheers,
Saravanan TG