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Fair Value Adjustments

Former Member
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Hi  ALL

From BPC NW 10.0  IFRS documents,  it reads " The fair value adjustments are posted by manual journal entries" ,  As fair value adjustment amount is constant for every accounting period, so do you have some advice on it ?

I know BPC Journal has "Reopen" function, it could copy journal entries to next period. In addition to it, is there any other good methods ?

Regards

Ajdsmod

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Answers (1)

Answers (1)

former_member225135
Active Contributor
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Hi Ajdsmod,

You can use carry forward functionality to carry forward the fair adjustment to next year.

Regards,

Rahul

Former Member
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Thank Rahul, it is a good method.

But for our client,  the situaltion is that a fiscal year include 12 fiscal period, every period need issue consolidated report.

As my understanding, "carry forward" is only carry last period of the prior year's balance into next year, so how to accomplish adjustment in every fiscal period?

Thanks

Regards

former_member225135
Active Contributor
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Hi,

Use Account based calculation to copy last fiscal period to current fiscal period (field name is SOURCE PERIOD).  Try to fill the field as "-1".

let say, you executed the ABC rule for 2016. APR, system will look for 2016.MAR

          you executed the ABC rule for 2016. MAY, system will look for 2016.APR

Or,

You can use the combination of carry forward and Account based calculation.

Regards,

Rahul

Former Member
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Thank Rahul

So far, whatever methods, we need a extra action " transfer prior period's adjustment to current period".

I prefer to "Journal" method : in the acquired period, input jouranl document, then use "Reopen" function,  copy the adjustment document into next period.

In my opinion,  compared with method "Carry Forwad" or "Account Based Calculation" , this method's advantage is  that user can understand the journal document easier than only specifc Audit ID.

Do anyone have experience for it, thanks.

Regards

former_member225135
Active Contributor
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Hi,

There is no problem of using journal function, only disadvantage is the manual process will increase in this activity. If you are using ABC, then the process of copying the adjustment from one period to another can be automated.

Regards,

Rahul

Former Member
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Thanks

I tried, I know how to schedule a data manager package, but has no idea that DMP run every month and transfer prior period automatically

I has a idea , but not sure it is correct.   Utilizing the system variables "%Year%" , and logic script " *For / *Next",  loop whole this year months and transfer prior period balance. Schedule DMP once a month.

Regards,

former_member225135
Active Contributor
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Hi,

Do you want system to run the package for every month on schedule basis?

Regards,

Rahul

Former Member
0 Kudos

Thanks Rahul

Yes, as every period need prior period's adjustment. it is better that run once a month.

In addition, Do we have methods that copy/transfer specific journal document automatically in the background?

Regards

former_member225135
Active Contributor
0 Kudos

Hi,

I would suggest to create a jounral with multiple header (in your case, TIME will serve as multiple header) and user can enter the same entry for multiple period. This will make things a bit simpler

Regards,

Rahul

Former Member
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The method is very usefull and I appreciate your input. Thank you.