Manage Consolidation Equity Accounts Override

On the Consolidations Equity Accounts Override screen, enter exceptions (by account) to the prior years stockholders' equity accounts translation (which is, by default, historical exchange rates).

This is the second step in the consolidation process.

You can access this application only if you are licensed for Multicurrency and you set the Consolidation Calculation Method to Inception-To-Date on the Configure Consolidation Settings screen.

Stockholders' equity accounts that you enter on this screen use the weighted average historical rates. If you are using Multicurrency, you can set up and maintain historical and weighted average historical exchange rates on the Manage Exchange Rates by Period or Manage Period Exchange Rates screens in Multicurrency.

If you want to convert statutory (functional) currency stockholders' equity balances to another company as part of the consolidated financial statements process, you can execute this process using either historical rates or weighted average historical rates:

• If a stockholders' equity balance has a single transaction posted to a specific account, you can apply the actual historical rate from the Manage Exchange Rates by Period screen in Multicurrency. When you post multiple transactions to a specific account, you cannot do this. The main cause of this currency conversion issue is the fact that each individually posted record needs the historical rate established on the day of the transaction. During the consolidations process, the entry from the sending to the receiving company is based on balance-level amounts, rather than the transaction-level amounts from which the balance is compiled.
• If a stockholders' equity account has multiple transactions, you must manually calculate a weighted average historical rate and enter it on the Manage Exchange Rates by Period screen in Multicurrency. You can then apply a weighted average historical rate based on the individual historical rates for each transaction in a stockholders' equity account. With this approach, you essentially force the desired result into the consolidation process.