Frequently Asked Questions on the Monetary Account Valuation Report (R09415)

Purpose

This document contains answers to frequently asked questions related to the Monetary Account Valuation Report.

Questions and Answers

General Questions

Question 1: How do I ensure correct financial reporting in a multicurrency environment?

Answer 1: Following are the steps required to ensure correct financial reporting in a multicurrency environment:

• Calculate unrealized gains/losses on open invoices and vouchers, receipts and payments.
• Run the Monetary Account Revaluation (R09415) to revalue the intercompany balances of the following accounts:
  • Revaluing the monetary accounts
  • The accounts falling under PBCxx AAI's to be posted by currency as setup at company level.

R09415 will creates a JX journal entry to record the unrealized gains/losses by adding/subtracting from the AA Ledger.

• Run Currency Restatement (R11414A) to restate account balances for companies with different base currencies into your reporting currency for consolidated reporting in one currency. The financial rate must agree with the daily transaction rate. For more information on R11414A, refer to Overview of Balance Restatement Method (R11414A) .
• By adding the Intercompany balance for each company in the restatement ledger, it should net to zero providing that all the companies do not have open unreconciled items.

Question 2: What are the various accounts processed by Monetary Account Revaluation (R09415)?

Answer 2: Monetary Account Revaluation (R09415) processes:

• Monetary accounts: Monetary accounts are typically bank accounts that accept transactions only in a specific currency. You assign a currency to the account master record in the F0901 table. This limits transactions to that specific currency.
• Accounts with blank currency codes in the F0901 table if the accounts fall within the range for AAI item PBCxx and the corresponding company is setup to Post Balance by Currency at company level. PBCxx AAI specifies account ranges for posting by currency. Unlike accounts that are assigned a specific currency, these accounts allow balances in multiple currencies.

Question 3: Can I run R09415 report without setting up PBCxx AAI's?

Answer 3: R09415 can be run without PBCxx AAI's being setup if the following is met:

• Account is designated as a Monetary Account.
• R09415 data selection does not specify a currency code.
• Company is not setup to Post Balance by Currency.

Question 4: Can I setup currency exchange rates for one company on a daily basis and set up another company for it to be done on a monthly basis?

Answer 4: The exchange rates setup is shared across all companies, hence it is not possible to setup different exchange rates by companies.

Question 5: How do I clear the balance amount in AA Ledger for a monetary account for which the balance in corresponding CA ledger is zero?

Answer 5: Run the Monetary Account Valuation report (R09415) with the processing option Reversing Entries under the Journal Entries tab set to '1' not to create reversing entry for accounts with calculated gains or losses for the next period. Post the JX entry and it will update the AA to zero balance.

Question 6: What is the relevance of Account Codes printed with suffix .A and .B before the actual monetary accounts in R09415 report output?

Answer 6: The R09415 program prints the Company Name and each of the Business Units for various monetary accounts.

In XXXXX.A, XXXXX denotes the Company Name which will always be in the highest hierachy and prints only once in the beginning. Next it will print YYYYY.B where YYYYY is the Business Unit for certain monetary accounts. Once it finishes printing of different monetary accounts under the YYYYY Business Unit, this will be followed by YYYYY.B again where YYYYY is the new business unit and it will continue to print monetary accounts under the new business unit. It will go on until all business units and their respective monetary accounts are printed.

Question 7: How does the As of Date processing option work in conjunction with the Fiscal Year and Period number processing options?

Answer 7: The logic to fetch the exchange rate works as follows for R09415 report:

• It uses the Processing Option (PO) As of Date to fetch the exchange rate from the Currency Exchange Rates table (F0015).
• If PO As of Date is blank, it uses the end date from combination of PO Fiscal year and Period to determine the exchange rate used in the valuation.
• If PO As of Date, Fiscal Year and Period are all blank, it uses end date of current period of the company to determine the rate used in the valuation.

Question 8: Why is the As of Date printing on the R09415 report different from the Processing option As of Date?

Answer 8: The As of Date printed on the report is actually the date that is used to retrieve the account balances from the F0902 table for the monetary accounts revaluation. This date is always going to be the period end date as follows:

• If PO Fiscal Year and Period are not blank, it will be the period end date from combination of PO Period and Year.
• If PO Fiscal Year and Period are blank, it will be the period end date of current period of the company.

On the other hand, the PO As of Date is the date used to retrieve the exchange rates for the monetary account revaluation.

Consider the following possible scenarios for better understanding:

• If Processing Options (PO) Fiscal Year and Period are not blank, but PO As of date is blank, it uses the end date from combination of PO Fiscal year and Period to determine the exchange rate used in the valuation. The report will display As of Date as the end date from combination of PO Period and Year.
• If PO Fiscal Year and Period are not blank and PO As of date is also not blank, it uses PO As of Date to determine the rate used in the valuation and ignore the values for PO Fiscal Year and Period. The report will display the As of Date as the end date from combination of PO Period and Year.
• If PO Fiscal Year and Period are blank, and PO As of date is also blank, it uses end date of current period of the company to determine the rate used in the valuation. The report will display As of Date as the end date of current period of the company.
• If Processing Options (PO) Fiscal Year and Period are blank, but PO As of date is not blank, it uses the PO As of Date to determine the rate used in the valuation. The report will display As of Date as the end date of current period of the company.

Question 9: What is the difference between proof and final mode for Monetary Account Valuation report?

Answer 9: When you run the Monetary Account Valuation report in proof mode, system will just compute the domestic value of the Gross Foreign Amount as per the desired exchange rate and then subtract it from the current domestic general ledger amount to calculate the gains or losses.

When you run the report in final mode, it will do the similar calculations as what it does in proof mode. Additionally, it will create Journal Entries (JEs) in F0911 Account Ledger table for the accounts having either calculated gains or calculated losses or both depending upon your " Gains/Losses" processing option setup under the Journal Entries Tab.

Question 10: The values for amounts have changed since the Monetary Account Valuation report was run since the last inception. What could be the reason?

Answer 10: When Re- running the valuation will show changes (compared to the prior run) provided if either of the following happens:

• As of Exchange Rate is different compared to previous run.
• The Total Domestic Amount (in General Ledger) has modified since the last run. For instance, if there were additional transactions being entered for the monetary account post the last run.
• No new transactions were entered but certain batches were posted. The reason being since system always processes the posted transactions for valuation. So the unposted transactions were not picked and processed in the first run but once they were posted, it will be picked up in the next valuation cycle run.

Common Issues

Question 1: How do I verify and rectify if the currency code for an account has been modified since inception?

Answer 1: The way to verify if an account has been changed since inception is to review the following:

• If the account is currently set as a monetary account (lets say EUR for USD Company), but there are F0911 records where the CRCD is either blank or has a different value than EUR, then the account has been changed. It deduces that the CRCD in F0911 for a monetary account will always be same as the currency code set in F0901 for that account.
• This could also be verified after reviewing the F0902 transactions for the account in question. If an account has duplicate records in the F0902 for the same combination of Fiscal Year, Ledger Type, and Account Id.

Monetary Account

Example:A US Company with base currency USD has a monetary account to transact only in Euro (EUR) with a European Company.

Following table shows how the system updates balances in the Account Ledger (F0911) and Account Balances (F0902) tables for monetary account:

Non-Monetary Account

Following table shows how the system updates balances in the Account Ledger (F0911) and Account Balances (F0902) tables for a non-monetary account as follows:

A US Company with transactions in US Dollars (USD), Pound Sterling (GBP), Euro (EUR) and Canadian Dollars (CAD).

• Company Base Currency - USD
• Transaction Currency - USD, GBP, EUR, CAD
• AA Ledger Type - USD

If an account has multiple F0902 records having CRCD as both blank and non blank values as shown above, the currency code value of account has certainly been changed at account master level.

Following are the steps to correct the F0911 and F0902 data, in case an account is being changed from non-monetary to monetary account:

• Run the Trial Balance for all revaluation accounts.
• Run Foreign Currency Account Balances Integrity report (R09707) in proof mode to review the discrepancies. Please refer to Overview of Foreign Currency Account Balances Integrity Report (R09707) for more details on R09707.
• Update the CRCD column in F0911 table to match with the currency code setup in F0901 for the account in question.
• Delete both the AA and CA ledger records via SQL with help of database administrator using with following selection criteria:
  • Company (GBCO), Ledger Type (GBLT), Century (GBCTRY), Fiscal Year (GBFY), Account ID (AID)
• Rebuild the F0902 via Repost Account Ledger (R099102) report to create the correct CA and AA ledger type records with correct F0902 amounts. Please refer to Overview Repost Account Ledger Integrity Report (R099102) for more details on R099102.
• Rerun R09707 report again in proof mode to verify that no accounts have error messages.
• Run the R09415 with processing options set to print errors on report.
• Review R09415 for any errors and JX document created by R09415. Donot rerun R09415 until this batch is posted if approved, or delete it is not approved.
• Rerun Trial Balance for all revaluation accounts.

For a monetary account, there must be a CA record for every AA record in the currency code of the account.  Another workaround to clean-up an account that should be a monetary account is to make the current account a non-monetary account, and create a new account that will be a monetary account going forward. This will eliminate the need to void all the transactions in the account that were not entered in the currency of the monetary account and reentering them in the account currency.

Question 2: Why am I getting "Currency Exchange Rate not found" error when Monetary Account Valuation is run?

Answer 2: This error may be thrown because of following reasons:

• System is unable to find an exchange rate in the Currency Exchange Rates table (F0015) based on the As of Date specified in the R09415 processing option.
• The Currency Code field for the account has been modified at Account Master level (F0901).

Question 3: Why do I get "Invalid Parameters" error in workcenter when R09415 is run for an account having balance in AA ledger but zero CA amount?

Answer 3: The issue has been addressed and fixed in following Bugs:

• Bug 12770060 for 9.0 release.
• Bug 13106374 for 9.1 release.

Question 4: Why do I get "Invalid Parameters" error in workcenter if the optional GRxx AAI is not setup even though R09415 creates journal entries?

Answer 4: The issue has been addressed and fixed in following Bugs:

• Bug 11038165 for 8.12 release.
• Bug 12770060 for 9.0 release.
• Bug 13106374 for 9.1 release.

Question 5: Why is the Account Level of Detail processing option not working when R09415 is run for higher level of detail?

Answer 5: If the report is run for higher level of detail (LOD), lets say LOD 6, it does not include the amounts from LOD 7 and 8. This issue has been addressed and fixed in Bug 13356676 for 9.0 release. A new processing  option "Suppress Zero Revalued Balances" is also added to suppress print in case of zero revalued balances.

Question 6: Why do I get "Invalid Cost Object Type 1 for account" error if R09415 is run for an account with Specific Cost Type edits and blank Cost Object?

Answer 6: The issue has been addressed and fixed in Bug 13582520 for 9.0 release.

Question 7: Why do I get "AAI Missing" error on R09415 report?

Answer 7: Please ensure that the following AAI's are setup for unrealized gains and losses on monetary accounts:

• GVxxx: Unrealized gains
• GWxxx: Unrealized losses

where xxx represents the currency code and is optional.

Following rules apply to AAI items GV and GW:

• The system uses the account number assigned to AAI items GVxxx and GWxxx to create unrealized gains and losses on monetary accounts.
• The business unit is optional. If the business unit is not included, the system uses the business unit of the company associated with the monetary account.

The sequence in which the system searches for GV and GW is as follows:

• The system searches for the AAI items GVxxx and GWxxx for the specific company, where xxx is the currency of the company assigned to the monetary account.
• If the system cannot locate these AAI items, the system searches for AAI items GVxxx and GWxxx for Company 00000.
• If the system cannot locate these AAI items, the system searches for AAI items GV and GW for specific Company.
• If the system cannot locate these AAI items, the system searches for AAI items GV and GW for Company 00000.
• If the system cannot locate these AAI items, the system returns an error message "AAI missing".