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Accruals and Deferrals in BPC

Dec 14, 2016 at 09:37 AM

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Former Member

Hello All,

There is a requirement on Accruals and Deferrals handling in BPC.

Business requires that, suppose one transaction happens in the month of November $100 with exchange rate conversion based on Nov.

In the Month of December they reversed the same with the Nov exchange rate in ECC.

But in the BPC how we can handle this kind of reversals/ accruals and deferrals. BPC will take the particular month exchange rate and translate.

Can you please address this kind of scenario in BPC, how to handle.

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9 Answers

Vadim Kalinin Dec 14, 2016 at 09:45 AM
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"In the Month of December they reversed the same with the Nov exchange rate in ECC."

What is the booking date of reversal transaction in ECC?

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Former Member Dec 14, 2016 at 09:49 AM
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Date of Reversal would in in Dec month.

These kind of transactions they want to have in BPC. How can we manage in BPC. BPC will apply that month end rate for the balance available. Is there any way to do in BPC

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If reversal booking date is DEC why the exchange rate is from NOV?

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Former Member Dec 14, 2016 at 09:55 AM
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These kind of currency differences, business asking me to handle in BPC on accruals and deferrals

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Former Member Dec 14, 2016 at 09:57 AM
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In the ECC reversal of transactions based on the same month rate even it is reversed in Dec. They apply for Nov Rate. Where as in BPC. what ever the balances availble system will apply that month rates.

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You are mixing things...

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Former Member Dec 14, 2016 at 10:13 AM
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Sorry for that.

1. Accruals/Deferrals how to handle in BPC

2. In the ECC business posting for the month of Nov and reverse it in Dec with same exchange rate.

in BPC how can we handle these kind of transactions.

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Vadim Kalinin Dec 14, 2016 at 10:14 AM
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In general in BPC you load actuals in local currency (in the currency of the entity). Accruals are also loaded in local currency. Then you perform currency conversion to consolidate...

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Former Member Dec 14, 2016 at 10:24 AM
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Yes, Correct, I am doing the legal consolidation for the BPC 101.

I load the all the actual balances and applied the currency conversion. BPC will apply Ex.rates for that particular month.

In my actual balances, all accruals also will be included. There is no separate loading for Accruals.

If I load the balances for the month of Dec, BPC apply ex rate for the month of Dec. in that case my accrual/Def. will be wrong as per ECC right.

Ex: ECC

Nov GL01 - $100 --> Ex. Rate 1.5

Dec Gl01 - $100 ---> Ex Rate 2.5 ( when they reverse they apply 1. 5 rate only in ECC)

Where as in BPC system will apply 2. 5. ; where kind I find the difference between 1.5 and 2.5 in BPC??

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Incorrect idea in general...

Currency adjustments are handled by other transactions in ECC etc...

At the end you have for example Net Income ECC in local currency: 100000 (including all currency effects).

If you want to convert it to another currency - you have to apply rate to the whole amount

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Former Member Dec 15, 2016 at 02:32 AM
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Do you have any solution for this Accruals and Deferrals scenario in BPC.

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I recommend you to talk with finance/accounting expert who will explain you that the requirements are not correct.

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Pratyush Panda Dec 19, 2016 at 12:29 AM
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Madhu,

There may be a way out for your scenario - Try this

1. Create a new category called "ACTUAL_ACC"

2. In Category dimension, you have "FX_SOURCE_CATEGORY", "RATE CATEGORY","RATE PERIOD", "RATE YEAR". Using these standard properties, you can simulate ex rate from previous month.

Prat

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