Define Historical Consolidation Rates

Explanation

This activity is used to define historical rates which can be used to translate selected balance sheet items in the consolidation process.

According to the basic principles of group consolidation, all balance sheet items are translated into the node currency using the balance sheet currency rate type defined on the balance version. As an alternative to the balance sheet rate the balances can however be translated to an historical rate defined in the historical consolidated rates page. 

The same reported balance can be translated to historical rates in any number of currencies during the consolidation process. If no historical rate is given for a combination of consolidation dimensions in a selected node currency the balances will be translated to the balance sheet rate.

The difference between the closing rate balance and the historical rate balance will be posted to a selected difference account using posting types GCP23 and GCP24.

Prerequisites

In order to perform this activity:

System Effects

As a result of this activity, specified balance sheet items will be translated using an historical rate in the consolidation process.