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Former Member
Nov 01, 2010 at 12:38 PM

IC elimination without differences per transaction currency


Hello everybody,

I have a question concerning BCS elimination. I'm not sure if I fully comprehend the posting because the system calculates other differences than I expected.

We didn't activate the option that differences shall be calculated per transaction currency (our companies only report local currency). So it's not possible to split the differences - that's OK. Now we have the following situation:

Contract: 1000 GBP in march 2010 (exchange rate: 1 GBP = 1,20 EUR)

Company A has GBP for local currency, company B converted the amount into their local currency EUR using the current exchange rate.

Company A: +1000 GBP

Company B: +1200 EUR

Both filled the field for transaction currency with 1000 GBP (they shouldn't but they did).

9 Months later they report the amounts in their local currency. The current exchange rate has changed: 1 GBP = 1,10 EUR. Our group currency is EUR.

So currency translation calculates

Company A: 1100 EUR

Company B: 1200 EUR (no calculation)

Now the elimination starts:

Partner ¦ TC ¦ LC ¦ GC

A ¦ 1000 GBP ¦ 1000 GBP ¦ 1100 EUR

B ¦ 1000 GBP ¦ 1200 EUR ¦ 1200 EUR

I expected the elimination to calculate a difference of 100 EUR in group currency but it didn't show any difference at all. It seems that the calculation bases upon transaction currency but I didn't activate that?! I expected that the elimination calculates the whole difference but isn't able to split into currency diff. and other differences. So it should post the whole amount as other differences. Am I wrong?

Best regards,