Monday, February 4, 2019

How are the foreign currency amount balances translated on consolidated Unrealized gains/loss report

The foreign currency balances on the consolidated Unrealized gains/loss report are translated using the consolidated average rates for the period specified. Unrealized Exchange Rate Gains and Losses report lists open transactions that post a change in value to the Unrealized Gain/Loss account. Unrealized gains/loss account has a general rate type of  Average. 

To verify:

1. Navigate to Lists > Accounting> Accounts > Unrealized gains/loss > General Rate Type = Average

1. Run the Unrealized gains/losses Report in local subsidiary

-- This will display result showing Foreign Currency balance in local subsidiary

2. On a separate tab, pull up the Consolidated Exchange rates ( Lists  > Accounting> Consolidated Exchange Rates). Set period ( e.g Dec  2015) . Select From Subsidiary= Child , To Subsidiary = Parent  Subsidiary. Verify " Average Rate" listed.

-- Amount in Foreign currency balance ( showing in local subsidiary ) multiplied by the consolidated average rate for the period equals the amount in Foreign currency balance column of the Consolidated Exchange Unrealized Gains/Loss Report.

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