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BPC 10.1 consolidation carries forward eliminations from prior year with old exchange rates

Jun 09, 2017 at 02:12 PM

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Hi,

We have set up a consolidation solution in our BPC10.1 system.

Based on the IFRS Kit documentation, the Carry Forward rules do not apply to automatic entries (Audit ID with property data source type=A). Now we have defined an audit ID ELIM with datasource type=A, to store elimination entries. When running consolidation, the opening balances on flow code F00 and this audit ID ELIM then gets calculated from the closing balances of the previous period. This works fine for us as long as there is no currency conversion in BPC.

Now when we introduce currency conversions into the BPC solution, the above set up does not give us the desired results. I can elaborate this further with an example as follows:

Let us say that we have the following balances from the previous period 2014.12. The amounts specified are converted from USD to AUD based on the currency conversion set up in BPC and using exchange rates for 2014.12.

Now when we run the BCF package and apply currency conversion for the next period (in our case 2015.12), we then see that the source audit ID ECC gets carried forward and the exchange rate of 2015.12 is applied as expected.

Then, after running Consolidation, the system carries forward the ELIM entry from 2014.12 with the same amount converted using 2014.12 rates. And the source entry on ECC now has a different amount because of currency conversion with 2015.12 rates. How can I then ensure that the ELIM entry for opening balances gets updated in such a way that the source entry on ECC gets eliminated completely?

Actual result:

Desired result:

Our elimination rule does include opening balance (F00) as source flow.

The Audit ID master data is set up as follows:

I tried the following:

  • I tried making the data source type of Audit ID ELIM as M, thinking that BPC will then not automatically carry forward the closing balances but will derive it from the ECC F00 amount of the current period. But that is not acceptable in the elimination business rule as the destination audit ID must be of type A.

Thanks,

Anisha

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1 Answer

Best Answer
Anisha Lobo Jun 13, 2017 at 06:33 AM
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I solved this by posting the difference of the translated amount between opening balance rate and current rate on a different flow code(let's say YFX), for opening balances (F00). Then the elimination rule treats this as a movement for 2015.12 and eliminates this difference accordingly.


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