Acquisition journal behavior
Acquisition journals are used to record acquisition costs for single or multiple transactions. These journals support entering local and translated values for balance sheet lines of formula type Q (acquisition) and balance sheet or profit and loss lines of formula type D (data entry), or F (formula). To retain the historical cost values, journal values submitted against these lines are posted and rolled up but never re-translated during a consolidation.
For acquisition lines (type Q), the values are carried forward from period to period regardless of the member selected for the Accumulation Method dimension. The pull-forward behavior is similar to opening balance (OB) or beginning balance (BB) lines, except that they are applied to single schedule lines.
As with other data entry (type D) or formula (type F) movement lines that are part of a beginning balance or opening balance suite, adjustment ending balance values are carried forward into the beginning (or opening) balance of the next sibling period.
These examples show the results of two posted Acquisition journals involving a balance sheet movement line (type D) named Additions for the periods January and February 2009:
|
Effective: January 2009 through January 2009 |
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| Schedule Line Items | Sign | Organization Unit | Product | Sales Channel | Local | D/C | CAD | EUR | GBP |
| Additions | D | Germany | No Product | No Sales Channel | 50,000 | D | 50,000 | 39,375 | |
and
|
Effective: February 2009 through February 2009 |
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| Schedule Line Items | Sign | Organization Unit | Product | Sales Channel | Local | D/C | CAD | EUR | GBP |
| Additions | D | Germany | No Product | No Sales Channel | 70,000 | D | 70,000 | 55,125 | |
The first example shows the pull-forward behavior of the adjustment and net adjusted ending balance amounts. This view reflects values in local currency (Euro).
| January | February | March | |||||||
| Reported | Adjustments | Net Adjusted | Reported | Adjustments | Net Adjusted | Reported | Adjustments | Net Adjusted | |
| Beg. Balance | 100,000 | 0 | 100,000 | 120,000 | 50,000 | 170,000 | 100,000 | 120,000 | 220,000 |
| Additions | 30,000 | 50,000 | 80,000 | 70,000 | 70,000 | ||||
| Dispositions | 10,000 | 10,000 | 20,000 | 20,000 | |||||
| Ending Balance | 120,000 | 50,000 | 170,000 | 100,000 | 120,000 | 220,000 | 100,000 | 120,000 | 220,000 |
The second example demonstrates that the original Acquisition journal values of 39,375 and 55,125 are retained when the target currency of the consolidation is GBP (British pound). The reported value for January for Additions is 18,350 (30,000 local * .6166667, the current exchange rate), but the adjustment value is still the original 39,375 (respecting the historical exchange rate)-not 30,583 (if the 50,000 local adjustment value had been translated using the current exchange rate). Similarly, the February adjustment value of 55,125 reflects the original adjustment value.
| January | February | March | |||||||
| Reported | Adjustments | Net Adjusted | Reported | Adjustments | Net Adjusted | Reported | Adjustments | Net Adjusted | |
| Beg. Balance | 60,247 | 0 | 60,247 | 72,296 | 30,123 | 102,419 | 60,247 | 72,296 | 132,543 |
| Additions | 18,350 | 39,375 | 57,725 | 55,125 | 55,125 | ||||
| Dispositions | 6,117 | 6,117 | 12,233 | 12,233 | |||||
| Ending Balance | 72,296 | 30,123 | 102,419 | 60,247 | 72,296 | 132,543 | 60,247 | 72,296 | 132,543 |