Using Currency in Multi-Book Ledger

A ledger company inherits its base currency and, if applicable, its report currency or currencies, from the General Ledger company. The ledger company also uses the currency table defined for the General Ledger company. Ledger companies can use any transaction currency for which they define relationships and exchange rates in the Currency application.

Using Revaluation

If the General Ledger company is defined to use exchange on the Currency tab of Company (GL10.1), both the General Ledger company and the ledger company must revalue their transaction amounts before closing the ledger company period.

Both revaluation programs operate the same. Most of the required setup is done in the General Ledger and Currency applications. The only setup required for the ledger company is that it must be attached (by way of a ledger group) to the currency gain and loss accounts defined for the General Ledger company on Currency Gain and Loss Accounts (CU03.1) so that the gain or loss journal entries created by the Multi-Book Ledger revaluation process can be posted to the ledger company. For more information on the required Currency setup, see the Currency User Guide. Assigning a ledger group to an account or subaccount

Using Translation

If the General Ledger company is defined to use translation, on the Currency tab of Company (GL10.1), both the General Ledger company and the ledger company must revalue their transaction amounts before closing the period.

Two translation methods are available:

Note: Ledger companies inherit the currency translation setup from the General Ledger and Currency applications. You do not need to attach a ledger group to the currency translation accounts defined for the General Ledger company on System Accounts (GL00.7). The Multi-Book Ledger application automatically attaches a ledger company to any system account used by the General Ledger company.

  • If the General Ledger company uses a consolidation company for translation, the base amounts of the translation company or companies are translated to the base amounts of the consolidation company. The consolidation company must be set up with a status of C on the Main tab of Company (GL10.1). The translation and consolidation companies must belong to the same ledger.

  • If the General Ledger company uses report currencies, you can translate the company base amounts to equivalent amounts in each report currency within the same company. Multi-Book Ledger provides a parallel translation process.

    If your General Ledger company starts implementing report currency when it already has existing balances in the base currency, you must specify report currency beginning balances on Balance Interface Maintenance (GL67.1). At the same time, if you have existing balances for your ledger company when you start implementing report currency, you must specify beginning report currency balances for the ledger company on Ledger Balance Interface Maintenance (ML67.1).

For more information on the translation process, see the Currency User Guide.

Using Currency Ledger

If the General Ledger company is defined to use Currency Ledger on the Currency tab of Company (GL10.1), your Multi-Book Ledger journal entries must be in balance and you can use Ledger Trial Balance (ML291) to produce trial balances for any transaction currency your ledger company uses.

For more information on the currency ledger, see the Currency User Guide.