We had multicurrency installed a week ago and I need help to come up with a new method of reconciling ledger with the subledgers.

1. There is a problem in AP in that the home values do not calculate correctly for CAD or USD payables. I can reconcile my 2010 CAD and 2011 USD payables using the Source currency, but Home currency does not match.

2. The 2015 Receipt Credit account contains both CAD and USD currencies within the one account. I am able to successfully reconcile 2015 Receipt Credit account with PO outstanding receipts using Home Currency. However, when I "Revalue Accounts" in Ledger, I am concerned that I will no longer be able to reconcile the Receipt Credit account unless I can also "Revalue" the outstanding receipts in PO. Is there a way to "Revalue" in PO?

Softrak, can you help?

Susan:

About the only time you will get a perfect match between the sub-ledger and Ledger home currency amounts is immediately after a revaluation.

If you just installed multi-currency, then what does 2010 and 2011 transactions have to do with anything?

There is no process in Adagio PO to revalue the Receipt Clearing account. I rely upon the report in PO to reconcile the source currency amounts and then revalue the GL only.

Setting up multi-currency and understanding all of the ins and outs with multi-currency is a task best done with your Adagio consultant.

Hi Doug,

Sorry, 2010 and 2011 are my account numbers for AP CAD and AP USD. 2015 is my account number for IR Receipt Credit. These are not years. Just ledger account numbers.

My adagio consultant is out of the office for a couple of weeks.

You say that you rely on The PO Outstanding Receipt report source currency amounts and then revalue the GL only? So, if you revalue the GL at 1.25 then I suppose I can just manually calculate the 1.25 to the PO source amounts to reconcile?

In AP, if I revalue in Ledger, I think it will be okay and I will continue reconciling using the source amounts.

At month end I'll make a back up and test this out. I need to reconcile my subledgers to ledger somehow so that I can verify that ledger is reporting the correct amounts.

Softrak, do you have a response to this? I am assuming your software provides a method to reconcile subledgers AP and IR with Multicurrency installed?

1. AP - As long as the source and home currency AP accounts are separated, I can reconcile using source currency. Home currency does not balance. Are you aware there is a problem here? Are you working on a fix?

2.IR - The Receipt Credit account in Ledger contains both CAD and USD currencies within the one account. I am able to successfully reconcile Receipt Credit account with PO outstanding receipts using Home Currency, however, will this still balance when I "Revalue Accounts" in Ledger? If not, is there a workaround that you suggest?

I would appreciate a response from Softrak.

Thank-you!

Hi Susan,

Doug is an experienced Adagio consultant with many years in assisting clients who use MultiCurrency. I trust his opinions. As he says, the moment you process a transaction for an exchange rate different that the one used for revaluation in GL, the home currency portion will not exactly match. Only at the moment of doing a currency revaluation will the home currencies match.

1) We are not aware of any problems, and are not working on a fix. Differences could possibly result in the sequence that transactions and processing occur, but we are not aware of anything specific.

2) I couldn't guess or guarantee that accounts would still balance after running a revaluation in Ledger. It would all depend on each outstanding transaction and respective rates, versus what's in GL. One way to get a feel for what might happen is to take a copy of the data and run the GL revalue process on the copy. Perhaps nothing happens or perhaps there are small changes.

Are you saying that when I revalue in Ledger that it will also revalue the subledgers? Otherwise what you're saying does not make sense to me.

For example, if I post receipts in PO at 1.25% and then at month end I revalue Ledger at 1.21, then I am assuming accounts in Ledger will revalue at 1.21. So, how is that you are saying that the home currencies will match after the revaluation in Ledger? Won't the Outstanding Receipt list in PO still report home currency at 1.25?

Hi Susan,

Tech Support was saying that, when you are using a subledger module (like Payables), you should do your revaluation in the subledger, rather than in the general ledger.

If you revalue Payables and post the resulting transactions in Ledger, your Payables control accounts should tie to your Open Payables report.