Currency Coversion from LC to INR and then to USD

[Former Member]

Hi Experts,

We have a typical Organizational structure where one Indian holding company have many foreign branches and subsidiaries and which in turn is a subsidiary of another US company.

Now for USGAAP reporting first we need to translate all branches and subsidiary of the Indian company into INR and then convert this INR values to USD for consolidation with US holding company.

The translation setup that I have done translates LC data to INR and USD but how can I translate data from INR to USD. Should I create two separate applications for Indian company and US company. Translate Indian company's subsidiary data to INR and transfer these data to another application as LC and translate them to USD. Please suggest a suitable approach to this.

[Former Member]

Hi,

First, what method are you using for currency translation? Business Rules or script logic?

In the case of the latter it is very easy to write a custom logic which translates from LC to INR to USD. You can have look at the standard FXTrans library and builn on that.

Hope this helps,

Madis

[Former Member]

Hi Madis,

Thanks for your reply. I am using the SPRUNCONVERSION and Business Rules for translation. For now I am using a work around where first I translate data from LC to INR and then copy the INR data into another dummy entity as LC using the standard "COPY" DM. Then I run the USD translation for the dummy entities. We are using BPC 7.5 MS version and I am not sure if script logic will be able to take care of huge list of entities and GL accounts being translated at different historical rates.

[Former Member]

More then 60 views but no reply??

Please experts. kindly help me with this.

[former_member209721]

Why not trying to create another ID in the currency dimension called LC_INR with currency type = L.

So, you first translate LC to INR then copy these results to LC_INR and translate into USD.

I don't kno if my suggestion is relevant, that just my first idea. Indeed, what makes me think about that is that the Local currency might be identified not by the "LC" ID but by the "L" currency type property. That's why you light create another local currency ID...

If this solution doesn't work, your suggestion seems to be relevant (2 separate app).