Parallel Currencies in General Ledger Accounting 

Use

You can use the General Ledger Accounting function described below, if you do not need valuation parameters (APC/depreciation terms) for group consolidation that are different from your local valuation, but only need amounts in a foreign currency.

The Financial Accounting (FI) component enables you to manage all values of one company code, on the same accounts, in up to two additional parallel currencies. To do this, you can define two parallel currencies for each company code in Customizing for Financial Accounting.

For more information, see Parallel Accounting and Currencies.

Make the following specifications for each parallel currency:

·        Currency type, according to the function of the currency (for example, group currency)

·        Exchange rate type for the currency translation

·        Source currency for the currency translation

·        Date (for example, the document date) for the currency translation

It is also possible to update APC and depreciation values that are posted in Asset Accounting in parallel currencies. The asset values can be updated in Financial Accounting in parallel in several currencies in the same accounting document as the amount posted in local currency.

Prerequisites

You set up a depreciation area with the following features for each currency:

·        The currency type and the currency in the depreciation area are identical to those for the parallel currency it represents (in the company code).

·        The depreciation area has identical depreciation terms and identical acquisition values to the book depreciation area.

The system then automatically supplies the corresponding posting documents with the additional values from these depreciation areas. The values from these depreciation areas will be posted to General Ledger Accounting (independent of their posting rules in the area definition).

The system can also handle parallel currencies for depreciation areas that are posted periodically to General Ledger Accounting rather than online.

Features

The system translates APC acquisitions into the parallel currency based on the exchange rate type (historical valuation). The system does not translate depreciation amounts. Instead, they are calculated in the given currency, using the depreciation terms in the depreciation area. This method guarantees that the net book value zero is reached during the defined useful life in all depreciation areas with parallel currencies. The system also calculates APC retirements and proportional value adjustments directly, rather than translating the currencies. The system calculates the proportional amount being retired based on the amount retired in the local currency area.

It is not possible to begin using the parallel currency functions after the company code is already live. You have to make the system settings described here before the given company code goes live.