Compeat Advantage has the ability to report in U.S. dollars, information posted in the general ledger in a foreign currency using eXcellent Financial Functions. This is done by using "Consolidation" entities and maintaining Currencies and the Currency Exchange Rate table.
A consolidation entity is a special type of Accounting entity and must be created for each foreign entity to be reported on in U.S. dollars. A consolidation entity can only be an accounting entity. No transactions will ever be entered in the consolidation entity except perhaps general journal entries to establish beginning balances.
Exchange rates for each fiscal period are defined in the Currency Exchange Rate table. This table must have a record for each currency and each fiscal period a foreign entity is to be consolidated for.
A foreign entity is indicated as such by entering the Currency of that entity in the Accounting or Restaurant entity definition (Setup, Entities) as well as its corresponding Consolidation entity.
eXcellent Financial Functions are used as usual to produce financial reports however consolidation entities will be used and foreign entities will be excluded in the reports.
The Currency Consolidation feature is used to populate the GL for a consolidation company. The Currency Consolidation feature makes a journal entry in the consolidation company for each GL account and each foreign entity.
The ending balance of each balance sheet account is divided by the Period End Rate in the Currency Exchange Rate table and an entry is made in the GL such that the ending balance in the consolidation company is the same.
The net change in each P&L account is divided by the Average Rate in the Currency Exchange Rate table and an entry is made in the GL for the result.
An entry is automatically made to the Foreign Exchange Gain/Loss account, defined in Enterprise Definitions, for the amount the GL is out of balance due to the use of the two rates.
The Currency Consolidate feature consolidates a specific fiscal period. The feature will replace existing values in the general ledger and use the exchange rates in effect at the time the feature us run. This allows financial reports to be printed before the end of the period.
Statistical values may be monetary such as amounts for comps or scalar such as guest counts. Currency exchange rates should not be applied to scalar statistical accounts. For example it would be incorrect to apply a currency exchange rate to guest counts. Applying and not applying exchange rates to statistical accounts are controlled by a setting in the Chart of Accounts.
Like all entities it is necessary for Other Definitions to be defined correctly for Consolidation companies. Though most definitions are not applicable to Consolidation companies, be sure that Retained Earnings and Statistical Offset are defined.