We have implemented inflation accounting for a country and are facing the following problem.
Any help or input to understand the calculation logic or customization needed would be immensely helpful.
1. The program FJA1-Inflation Adjustment of G/L Accounts is executed and the program calculates correctly the inflation for the first and 2nd month.The issue is 3rd month onwards.
For example lets take an amount of 10000 EUR has been posted in Jan 2020 and the inflation indexes are
Jan 2020 : 1.02
Feb 2020 1.10
Mar 2020 1.26
2. When FJA1 is executed for the first month i,e Jan 2020 it calculates a variance of 0 as there is no inflation calculated for the first month. This is correct and as per expectation.
3. When FJA1 is executed for the 2nd month i,e Feb 2020 it revaluates the amount to 11000 = (10000*1.10) correctly both in test run mode and update mode and this is correct and as per expectation.
4. When FJA1 is executed for the 3rd month i,e Mar 2020 , the program revaluates the amount to
12600 = (10000*1.26). The expectation is the revaluation in the month of March should be 13860 i.e 10000* 1.1 *1.26
Please help to understand
1.Why the system is not taking the cumulative effect of the revaluation of previous month and only revaluating the original balance with current month's index. Is there something in the configuration related to this?
2.Is there any option available for reversal of inflation revaluation of previous month in the next month i.e Feb revaluation is reversed in March?
3. Once the program is executed in update mode the inflation index are no more modifiable and no changes can be done to the same. How to make them modifiable again.