Overview of Detailed Currency Restatement Method (R11411)

Detailed Currency Restatement enables you to maintain an additional set of account books in an alternate stable currency with a different ledger type (XA) for reporting purposes. The currency on the XA is typically a currency that does not fluctuate as compared to the company's original currency. For example, by restating transactions from Colombian pesos (COP) to U.S. dollars (USD), a Colombian company can generate meaningful comparisons of current to historical amounts by using the more stable U.S. dollar.

Detailed currency restatement is typically used for following reasons:

A company operating in a highly inflationary currency has to maintain a second set of books in an alternate currency for financial analysis and reporting.
A company has to report final results at the transaction level in both the local currency and the currency of the parent company.
A company has to maintain dual reporting for certain classes of general ledger accounts, such as fixed assets, inventory, and equity accounts, to meet accounting standards.

Scope

This document is intended for Finance Functional users who will be involved in the multi currency processing in the General Accounting system.

Details

Program Functionality

You run the Detailed Currency Restatement program (R11411) to apply current exchange rates to transactions when restating amounts from one currency to another. Based on a processing option, this program creates a second restated ledger of transactions for the alternate currency ledger (XA) only, or for the XA, YA (domestic origin), and ZA (foreign origin) ledgers.

Typically, the Detailed Currency Restatement program uses exchange rates to convert domestic currency amounts in the AA (actual amount) ledger to alternate currency amounts in the XA ledger in the F0911 table. The exception to this is when amounts in the foreign currency ledger (CA) are in the same currency as the XA ledger. In this case, the program copies the CA ledger amounts to the XA ledger; it does not restate the AA amounts.

The Detailed Currency Restatement program creates a corresponding transaction in the alternate currency in the XA ledger for every transaction in the domestic currency that is within the range or ranges of accounts specified in the CRxx AAIs.

Detailed currency restatement is integrated into the EnterpriseOne General Accounting, EnterpriseOne Accounts Receivable, EnterpriseOne Accounts Payable, and EnterpriseOne Fixed Assets systems. This restatement method includes special functionality for voids, reversals, and gain and loss calculations and enables you to maintain a second set of transactions in a stable currency for reporting purposes.

NOTE: Before you restate base currency amounts in another currency, determine whether you really need those amounts restated at a detail level. Restating amounts at the detail level has sizing implications. For example, if you enter approximately 2,000 records on a monthly basis, you will have 4,000 records after you run detailed currency restatement. This increase can have a considerable impact on system disk resources. You can also consider to use Balance Currency Restatement method (R11414A) to restate existing company balances in a different currency at the general ledger balance level based on amounts in the Account Balance (F0902) table. For more information, refer to Overview of Balance Restatement Process.

Transactions Selection Criteria

Based on the data selection provided, the Detailed Currency Restatement program selects only those companies that are set up for detailed currency restatement in the F0010 table for processing and ignores all other companies. This has a positive impact on performance and helps improve processing time.

The Detailed Currency Restatement program processes all posted transactions in the actual amount (AA) ledger of the F0911 table that meet this criteria:

Company: The company on the transaction is set up for detailed currency restatement. The Detailed Currency Restatement field is set to 1 for the company in the Company Names & Numbers program (P0010).
AAIs: The account on the transaction is within the account ranges set up for AAI item CRxx.
GLALT9 Field (F0911): The transaction contains a blank value in the Currency Update (ALT9) field in the F0911 table.

Transactions Created

For each transaction in the AA ledger that meets this criteria, the R11411 program creates a new F0911 transaction with following attributes:

Batch Type: 'XX'.
Batch number: Same as the original transaction.
Ledger Type: XA, YA, ZA depending upon the Additional Ledgers Processing option for R11411 report.

For each transaction, the program updates the ALT9 field from blank (not processed) to one of these values:

'P': Processed
- The transaction was processed by the Detailed Currency Restatement program.
- The program creates a corresponding record in the XA ledger (and optionally, the YA and ZA ledgers) and updates the original AA ledger record with P (processed).
- The program prints a report with the message No errors - batch will post.
'N': Not Applicable
- The transaction was processed by the Detailed Currency Restatement program, but ignored because the account is not within the account ranges for AAI item CRxx.
- The program does not create a corresponding record in the XA ledger, but instead updates the AA ledger with N (not applicable).
X
- The original journal entry was flagged to not create a corresponding record in the XA ledger when processed by the Detailed Currency Restatement program and was subsequently voided.
Y
- The original journal entry was flagged to not create a corresponding record in the XA ledger when processed by the Detailed Currency Restatement program.

NOTE: The first time that you run the Detailed Currency Restatement program (R11411), processing might require a significant amount of time because the program updates the ALT9 field for all qualified records in the F0911 table. Thereafter, the program updates only new qualified transactions. Once Detail Currency Restatement is completed all F0911 records will have a value updated in the GLALT9 field. In case a change is needed, for example, the CRxx AAI ranges are expanded, then the GLALT9 needs to be cleared for the records that reflect the change with the change in the CRxx AAI.

Setup

Before you can use detailed currency restatement, you must set up certain information that the system uses during processing. Unlike other setup programs, which you access using different menu options, you can perform all of the setup for detailed currency restatement from one interactive form called Detailed Currency Setup program (P11410). This form has links that you can select to access the programs that you need to set up or revise information.

P11410_Detailed_Currency_Setup

NOTE: Since P11410 application updates certain key attributes of System Constants, an appropriate level of security should be setup restricting access to end users.

Multi-Currency Conversion Constant

Enter 'Z' Divisor or 'Y' Multiplier method for processing multi-currency transactions.

Intercompany Settlements

Enter '2' Detail or '3' Configured Hub for Detailed Currency Restatement. No other methods are valid.

A/P Offset Method and A/R Offset Method

Enter 'Y' (one offset per transaction) for detailed currency restatement.
This is the method by which the system generates the offset entry for trade accounts.
No other methods are valid.

NOTE: For more information on how to setup General Accounting Constants, refer to following documents:

Company Setup

You use the Work with Companies program (P0010) to set up your companies for detailed currency restatement.

P0010_Company_Setup

Enter a following value that identifies whether a company allows detailed currency restatement processing:

Blank
- Do not allow detailed currency restatement processing.
1
- Allow detailed currency restatement processing.
- The system automatically determines whether to use the Y (multiplier) or Z (divisor) method.
- The method is the opposite of the multicurrency conversion method set up in General Accounting Constants.
Y
- Allow detailed currency restatement processing.
- Enter 'Y' (multiplier) if the multicurrency conversion method in General Accounting Constants is 'Z' (divisor).
Z
- Allow detailed currency restatement processing.
- Enter 'Z' (divisor) if the multicurrency conversion method in General Accounting Constants is 'Y' (multiplier).

Note: Values '1', 'Y', and 'Z' all allow detailed currency restatement processing. The primary difference is that by choosing 1, you let the system determine the conversion method value and by choosing Y or Z, you specify the method explicitly.

You enable detailed currency restatement for Default Company 00000 and the companies for which XA entries need to be created.

NOTE: Default Company 00000 must have the same currency as setup for the XA ledger type in Work with Ledgers application (P0025).

Ledger Types Setup

When you work with multiple currencies, the system uses ledger types AA (actual amounts) and CA (foreign currency amounts). To perform detailed currency restatement, the system uses the XA, YA, and ZA ledger types. You must set up the alternate currency (XA) ledger for detailed currency restatement and, optionally, the domestic origin (YA) and foreign origin (ZA) ledgers.

NOTE: The detailed currency restatement program is designed and hard coded to use only these ledgers types. For more information on how to setup these ledger types, refer to Multicurrency Ledger Types section in Overview of Ledger Types Setup.

If you use the Detailed Currency Restatement program to record transactions by domestic origin and foreign origin, the system updates the YA and ZA ledgers based on the original entry. If the original entry was a domestic transaction, the system updates the YA ledger. If the original entry was a foreign transaction, the system updates the ZA ledger.

The information in following table shows how the system updates certain transactions for detailed currency restatement:

Original Transaction	Alternate Ledger Updated
Domestic transaction in the AA currency	No foreign currency (CA) amount exists. The system: Restates the AA amount in the XA ledger. Copies the AA amount to the YA ledger.
Foreign transaction in the XA currency	The system copies the foreign currency (CA) amount to both the XA and ZA ledgers.
Foreign transaction in a currency other than the XA currency	The system: Restates the AA amount in the XA ledger. Copies the XA amount to the ZA ledger.

AAI Setup

Set up AAI items for using Detailed Currency Restatement method:

CRxx: Beginning and ending account ranges for detailed currency restatement.
CR: Offset for detailed currency restatement.

NOTE: For more information specific to setting up of AAI's, refer to Overview of Automatic Accounting Instructions (AAI) in General Accounting.

Exchange Rate Setup

Enter exchange rates to convert domestic currency amounts in the AA ledger to alternate currency amounts in the XA ledger. If you do not set up exchange rates with a specific effective date, the Detailed Currency Restatement program uses the exchange rate of the last effective date.

Currency_Exchange_Rates_Figure

You use the Work with Currency Exchange Rates program (P0015A) to set up and control the exchange rates for various currencies.

Before you run the Detailed Currency Restatement program:

Verify that the exchange rates are updated and that the effective date corresponds to the date that you restate. If the system does not find a rate with the date that you are restating, it uses the last effective date.
If you set up currencies to use the no inverse or triangulation method of exchange rate calculation, the Detailed Currency Restatement program uses that method when restating amounts. It uses the most recent effective exchange rate in combination with the override conversion method, which is designated on the Revise Currency Exchange Rates form (P0015A).

Processing Options (R11411)

Ledgers Tab

1. Additional Ledgers

Enter '1' to restate amounts in the XA (Alternate Currency), YA (Domestic Origin) and ZA (Foreign Origin) ledgers.
Default of blank will restate amounts in the XA ledger only.

2. Units Ledger

Enter '1' to not create entries in the units ledgers.
Default of blank will create entries in the units ledgers (XU, YU, and ZU) that correspond to the XA (Alternate Currency), YA (Domestic Origin), and ZA (Foreign Origin) ledgers.

Post Tab

1. Post Version

Enter the version of the Post General Journal program (R09801) that the system should use to post the entries created by this program.
It is recommended that you use version ZJDE0041 for R09801 report. This version of the Post General Journal program is for batch type XX (Detailed Currency Restatement).
Default of blank will not post the restatement entries.

Automatic JEs Tab

1. Automatic JEs

Enter '1' to automatically create balancing journal entries for rounding differences using the balancing offset account specified by AAI item CR.
This makes an automatic entry to the XA ledger for balanced entry.
The system creates balancing journal entries (document type AE) only in the ledgers that you specify in the Additional Ledgers processing option.
Default of blank will not create balancing journal entries.

Exchange Rate Tab

1. Exchange Rate

Enter '1' to use the exchange rate that was in effect on the service/tax date.
The service/tax date is the date that the goods or services were purchased, or the date that the tax liability was incurred.
Default of blank will use the exchange rate that was in effect on the G/L date.
The system uses the exchange rate in the Currency Exchange Rates table (F0015) for the date that you specify.

NOTE: The Detailed Currency Restatement program does not use the value in this processing option for receipt and payment batch types. Instead, the program uses the historic date, if it contains a value, or the GL date.

Data Selection (R11411)

Use data selection to select the companies in which to restate transactions. If you do not select specific companies, the restatement program reads transactions for all companies that are set up for detailed currency restatement. This impacts processing time.

Running the Detailed Currency Restatement Program (R11411)

You can run Detailed Currency Restatement Program (R11411) to generate restated entries as follows:

Running R11411 independently from menu or batch versions

When you setup Detailed Currency Restatement for the first time, you should run the Detailed Currency Restatement program from the menu or batch versions instead of from the General Ledger Post program. All transactions that were previously entered must be processed for Detailed Currency Restatement; therefore, the program requires additional processing time and might run more efficiently during off-peak hours.

General Ledger Post Report program (R09801) calling Detailed Currency Restatement (R11411)

If you want to ensure that your XA ledger has the most up to date information, you can call Detailed Currency Restatement Program (R11411) from the General Ledger Post program (R09801) by activating a processing option in the General Ledger Post program (R09801) under the Versions tab. To activate the R11411 from R09801, you designate the version of the Detailed Currency Restatement Program (R11411) that you want to run.

The General Ledger Post program posts an individual batch and sends the batch number and type to the Detailed Currency Restatement program. The restatement program restates transactions for the companies within the batch that are set up for detailed currency restatement and, if applicable, creates balancing journal entries. If the Post Version processing option in R11411 is set appropriately, the post program posts the restated transactions and, if applicable, the balancing journal entries. This cycle is repeated until all batches are posted, all transactions within those batches are restated, and, if applicable, all balancing journal entries are created and all batches of restated and balancing journal entries are posted.

Reviewing the Report

If the program finds an error for a company, it generates an error report before any processing takes place and does not update the XA ledger for that company. If the program finds errors within a batch, the message "Batch Completed With Some Errors. See Work Center for Details." appears on the error report. You must resolve the problem and run the program again.

If no errors exist, the message "No Errors. Batch Will Post." appears on the error report.

Common Error Messages

Following table lists common error messages that might appear on the error report when you run the Detailed Currency Restatement program (R11411) and their causes:

Error Message	Cause
Daily Transaction Rate Not Set Up	No current exchange rate and no prior effective date are set up to restate the domestic currency in the alternate currency.
Multicurrency Conversion Not Set Up	The General Accounting constant for Multicurrency Conversion is set to N. Set the constant to either Y (multiplier) or Z (divisor) to activate multicurrency processing.
CR01 or CR02 AAI Not Set Up	The ranges for AAI items CRxx are not set up, or the setup is incorrect.
CR AAI Account Invalid or Not Set Up	The account number for AAI item CRxx is not in the chart of accounts for the company.
Version of Post Specified Invalid	You entered an invalid version number for the post program in the processing option for the Detailed Currency Restatement program (R11411).
XA Ledger Not Defined	The XA ledger is not set up in UDC table 09/LT.
Currency Invalid for XA or ZA Ledger	An invalid currency code for the XA or ZA ledger is specified on the Set Up Ledger Type Rules form. The YA ledger is not assigned a currency code.
YA or ZA Ledger Not Defined	You set the processing option to create records in the YA and ZA ledgers, however, these ledgers are not set up in UDC table 09/LT.

Reviewing and Approving Detailed Currency Restatement Transactions

Access the Work With Batches application (P0011) to review and approve the Detailed Currency Restatement Transactions generated by R11411 report.

After you run the Detailed Currency Restatement program (R11411), verify the accuracy of the detailed currency transactions and, if applicable, approve the transactions before posting them to the general ledger. Transactions created by the Detailed Currency Restatement program have the same batch number as that of the original AA transactions. The batch type is XX.

You can also review the alternate currency ledger (XA), along with the original actual amounts ledger (AA), on the Work with Account Ledger Inquiry application (P09200).

Posting Detailed Currency Restatement Transactions

After you review and approve the detailed currency restatement transactions, you must post the XX batches created by the restatement program to the XA ledger. If you run the post program for a batch type other than G to create XX batch types, you must post that XX batch separately to the XA ledger.

Frequently Asked Questions

Question 1: How do I restate using the YA and ZA ledgers?

Answer 1: To perform detailed currency restatement, the system uses the XA, YA, and ZA ledger types. Though setting up the alternate currency (XA) ledger for detailed currency restatement is required, its optional to setup the domestic origin (YA) and foreign origin (ZA) ledgers. While setting up Ledgers Types in P0025, ensure the following:

Define the XA and ZA ledgers using the alternate currency code.
Do not assign a currency code to the YA ledger.

For more information on how to setup these ledger types, refer to Multicurrency Ledger Types section in Overview of Ledger Types Setup.

The Detailed Currency Restatement program (R11411) creates the restated entries depending upon the Additional Ledgers processing option:

Enter '1' to restate amounts in the XA (Alternate Currency), YA (Domestic Origin) and ZA (Foreign Origin) ledgers.
Default of blank will restate amounts in the XA ledger only.

The YA and ZA ledgers are updated based upon how the transaction is originated:

The YA ledger is updated if the original entry is a Domestic transaction
The ZA ledger is updated if the original entry is a Foreign transaction.

Example:

For example, consider a Colombian company that would like to restate transactions from Colombian pesos (COP) to U.S. dollars (USD). Detailed Currency Restatement is used to create XA ledger transactions, where the XA ledger is defined as USD. When the Additional Ledgers processing option of R11411 specifies that amounts are to be restated in the XA, YA and ZA ledgers, the following three possible types of transactions can result in this case:

Original Transaction Type	Ledgers Restated
Domestic transactions in COP.	For this entry, the transaction currency is the same as the company currency. The system: Restates the AA ledger amount (COP) to the XA ledger (USD). Copies the AA ledger amount (COP) to the YA ledger (no currency).
Foreign transactions in USD.	For this entry, the transaction currency equals the XA ledger currency. The system copies the CA ledger amount (USD) to both the XA and ZA ledgers (USD).
Foreign transaction in CAD.	For this entry, the transaction currency is a currency other than the XA ledger currency. The system: Restates the AA ledger amount (COP) to the XA ledger (USD). Copies the XA ledger amount (USD) to the ZA ledger (USD).

Original Transaction Type

Ledgers Restated

Domestic transactions in COP.

For this entry, the transaction currency is the same as the company currency. The system:

Restates the AA ledger amount (COP) to the XA ledger (USD).
Copies the AA ledger amount (COP) to the YA ledger (no currency).

Foreign transactions in USD.

For this entry, the transaction currency equals the XA ledger currency. The system copies the CA ledger amount (USD) to both the XA and ZA ledgers (USD).

Foreign transaction in CAD.

For this entry, the transaction currency is a currency other than the XA ledger currency. The system:

Restates the AA ledger amount (COP) to the XA ledger (USD).
Copies the XA ledger amount (USD) to the ZA ledger (USD).

Question 2: How can I calculate Unrealized Gain/Loss for XA Ledger of a domestic voucher?

Answer 2: Per the current design, you cannot calculate Unrealized Gain/Loss for a domestic voucher using Detailed Currency Restatement program (R11411). Enhancement Bug 10843688 has already been entered requesting the ability to calculate unrealized gains and losses in the XA ledger. As a workaround, you may consider to reset the GLALT09 field for the XA ledger F0911 record before running the R09415 report. However, this should be performed with caution and a backup should always be taken when performing direct table updates.

Question 3: Why does R09801 create XA entries while posting receipt transactions entered in domestic currency?

Answer 3: Depending on whether a receipt or payment is a domestic or foreign transaction, the system uses different calculations to create restatement gain and loss records when you post the receipt or payment.

For domestic transactions, the system calculates the gain or loss amount between the AA (domestic) and XA (alternate) currencies and creates gain and loss records with a document type of RG (receipt gain or loss) or PG (payment gain or loss). This amount is due to exchange rate fluctuations between the invoice and receipt dates or the voucher and payment dates and is written to the XA ledger:

The post program creates records for the domestic currency receipt or payment amount in the AA ledger and the alternate currency gain or loss amount in the XA ledger.
The Detailed Currency Restatement program creates a record for the alternate currency receipt or payment amount in the XA ledger.

Question 4: Why does the F0911 record for XA Ledger contains incorrect value of CRCD in case of receipts?

Answer 4: During receipt processing, the system creates two different XA records. One XA record is created at the time of posting (R09801) with batch type 'RB' whereas the other is created during restatement by R11411 with batch type 'XX'. Example:

In P0025, setup the currency code as follows:
- AA Ledger Type - USD
- XA Ledger Type - SGD.
Setup exchange rate between USD and SGD as follows:
- For Sept, exchange rate (USD to SGD) = 1.6
- For Oct, exchange rate (USD to SGD) = 1.4
Create a domestic invoice - $100 USD in Sept 2011.
Post the invoice and run the restatement - XA record is created with batch type 'XX' with F0911.GLCRCD = SGD.
Create a Receipt to fully match the above invoice in Oct 2011.
Post the receipt - XA is created during the R09801 post due to the difference in exchange rate between the invoice (Sept) and receipt (Oct) periods. However, the F0911.GLCRCD =USD instead of SGD.

Conclusion: The F0911.GLCRCD for XA created during R09801 will be the denominated currency code setup in Ledger Type Master Setup (P0025). In this case the batch type created by R09801 will not be 'XX' rather 'RB'. When R11411 is run, the XA will be created as batch type 'XX' and the F0911.GLCRCD will be created with the transaction currency code SGD.

Question 5: Why doesn't the data selection on batch type and batch number on the R09801/ZJDE0001 pass to the R09801/ZJDE0041?

Answer 5: When the R09801 (post UBE) has the version for the detail restatement set in the processing options will not be able to pass the Batch type and Batch number to the R11411 (detail restatement UBE) . This is because the UBE (R11411) does not have those data items in the data selection.
As a consequence the R11411 will not be able to pass the beginning information from the R09801/ZJDE0001 to the R09801/ZJDE0041. The Batch type and number gets lost between the R09801/ZJDE0001 and the R11411.

Question 6: Can the restatement journal entries be deleted or voided?

Answer 6: If it becomes necessary to delete or void the journal entries created by the R11411 these can be deleted in P0911 (Work with Journal Entries). The journal entries can be found by searching on the batch number.