Historical Rates

To ensure that you recalculate an investment to a fixed value in a specified currency, enter a separate historical rate for each account in the investment elimination template.

Select the relevant row, click the Historical Rates button to open a separate window and enter the historical rates. In this window, you can define which currency and amount is valid for the relevant transaction and click Save and Close to return to the previous window.

If you are using Historical Rates, please note the following:

  • If eliminations are converted to several currencies according to the consolidation structure you can only enter a fixed rate to the currency on the next higher level in the structure.
  • If you have entered a historical rate on one transaction updating a certain account through configuration tables of the General Configuration - Reconcile tab, you need to make sure that you have selected Historical Rates for all transactions updating that account on the company in question.

Conversion difference in investments could be stored in both legal and group currency:

Storing the investment elimination template in group currency: When storing investments in group currency you cannot enter historical rates on share capital accounts. It is possible to enter a historical rate on the share capital account in the investment elimination template, but it will not be used. Instead the selected group value will be converted to B rate. The reason for this is that the offset account for investments is converted to B rate and would not balance between parent and subsidiary.

Storing the investment elimination template in local currency: It is important to enter a local amount for the Investments in Subsidiaries accounts, see historical rates earlier in this section. Otherwise, the system will not be able to calculate the conversion differences. All accounts regarding Investment in Subsidiaries also need to be included in the control table for automatic journal, E150.

Note: To be able to analyze the conversion differences from the investment date on the rest of the investment elimination template you need to enter a local amount for these accounts as well. Make sure you understand the consequence of using historical rates, see the historical rates earlier in this section.