on 03-07-2011 10:30 PM
Hi All,
Our Company code is using parallel currencies 1LC is CAD, 2nd LC is USD & 3rd LC is GBP. (In T.Code: OB22)
When we look at the values for local currency 3 (GBP) in ledger 0L, all the entries have been translated from CAD to GBP at the same rate each month, which should be the proper treatment. In fact the translation to GBP is occurring at the historical rate for the fixed assets, which is correct.
However when we look at the values for local currency 3 in the parallel ledger (N1) we can see that the same CAD values have different LC3 values each month. The rate being used to translate the depreciation expense changes each month and looks like it is the current rate in place at the time depreciation was run.
We want the depreciation amounts for LC3 that are posted each month to be translated using the historical rate in both the leading (0L) andparallel (N1) ledgers. Our issue is how do we make the change. (Depreciation Run to update Non Leading Ledger N1 with historical exchnge rates as in Leading Ledger 0L.
Unable to understand the system behaviour. The depreciation posting run in the NON Leading ledger should happen with Historical Exchange Rate.
Thanks in Advance
Regards
K I M.
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Hi
To understand why the system behaves in that way, the most important
thing is to understand how area 01 is posting its values:
As you will know, area 01 is the only area that is posting its values
"online" (this means that APC values will be updated in the G/L directly
when posting to an asset). It is a technical matter that this "Online"-
posting will always be done to ALL(!) ledgers that are defined in the
company code. So whatever Ledger group you assign to depreciation area
01, this will not be considered by any APC value posting, APC
transactions (as well as write-ups) will always be posted in ANY ledger
group in G/L with the values from area 01.
If you then want to setup a scenario in Fixed Asset Accounting, where
you post different valuations (local GAAP / IFRS) to a different ledger
group in G/L for parallel valuation, then you have to use (in total) 3
depreciation areas in the following way. For each additional "valuation"
for which you have additional ledgers defined in G/L, and for which you
want to get different values as those posted in area 01, you need also
two additional depreciation areas (1 real and 1 derived area) in
asset accounting.
So a typical dep.area setting for a parallel ledger is like:
Real Posting to G/L Ledger
Area 01 X 1 0L
Area XX X 3 XX (your ledger code)
Area YY 6 XX (your ledger code)
Acquisition/transf/retirement postings in area 01 go to all ledgers
independently of your setting in OADB. And, if any difference occurs
between area 01 an area XX this is posted trough the derived area YY
(posting indicator 6).
blaz
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Hi Blaz ,
I have a query that if Depreciation posted in Area 01 is posted in all ledger and according to IFRS i have changed value of asset in non leading ledger which is used in DEP area XX therefore different dep will be posted in area XX but when is see G/L or report according to non leading ledger it will show both the values of depreciation which s posted in area 01 as well as xx , then how will you bifurcate.
Thanks
Abhi
Edited by: 123@abhi on Sep 10, 2011 7:57 AM
Edited by: 123@abhi on Sep 10, 2011 7:59 AM
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