Fixed Asset Multi-Currency Processing

Base Currency

The asset values are always maintained in the base currency. These values can be viewed in the Value 1 Depreciation tab in Asset Records (FAS). The base currency is defined in Business Unit Setup.

Transaction Currency

Each ledger transaction can contain a transaction currency value. This value may be optional or mandatory, depending on the Other Currency Post Rule setting in Business Unit Setup.

The transaction value can be used in the Fixed Assets Register to record the asset posting values in a second currency. In SunSystems modules the transaction currency is not usually a predefined currency, it can vary from one transaction to another. However, when it is used for an asset the currency code must be preset and all of the transaction currency values for the asset must be entered in this currency. This is because the asset values are calculated in this currency from the transaction values, so a single currency must be used to establish meaningful values.

The currency is identified in the Asset Currency Code field in the Value 2 Depreciation tab on Asset Records (FAS). The Value 2 Depreciation tab also displays the asset values calculated in this transaction currency.

A different depreciation method can be used to calculate the depreciation in this currency. The depreciation method and other depreciation details are also identified in the Value 2 Depreciation tab on Asset Records (FAS).

Second Base/Reporting Currency

The asset values can be maintained in the second base or reporting currency defined for the ledger, if the Value 3 Post Rule is not set to Not Defined in Business Unit Setup, and the Assets in Second Base/Reporting Currency option is set in Ledger Setup (LES).

You can set the Reporting Conversion Control option for an asset in Asset Records (FAS) to determine whether or not the second base or reporting currency value is required on postings for a particular asset.

The second base or reporting currency values are calculated from the base or transaction currency values, depending on the pivot currency. They are displayed in the Value 3 Balances tab on Asset Records (FAS).

Multi-Currency Depreciation

Depreciation is calculated for an asset on the base currency values using the Base Depreciation Method identified for the asset in Asset Records. It is calculated on the transaction currency values for the asset using the Transaction Depreciation Method identified for the asset. It is calculated on the second base/reporting currency values using the Reporting Depreciation Method for the asset.

If a transaction depreciation method is not chosen for the asset, depreciation is not calculated for the transaction currency value. If a reporting depreciation method is not chosen for the asset, depreciation is not calculated for the second base/reporting currency value.

If a fourth currency is defined in Business Unit Setup, the system is able to calculate translated fourth currency equivalent values using the currency information available. However, assets cannot be maintained in a fourth currency.

Suppressing Accounts from Ledger Revaluation

Accounts to which depreciation is posted should be suppressed from Ledger Revaluation. This is because the depreciation methods may be different for base currency, transaction currency, and second base/reporting currency and therefore the conversion rate, being contrived, has no relevance in a revaluation.