Investment in Equity (GL) currency conversion

[Former Member]

Hi Experts,

Could you help me in setup and understand the behavior of BPC 10.1 (Classic) Nw for Investment in Equity GL

I am doing legal consolidation ( YTD Model):

One Investment GL in which 100$ posted in 2014.01 with exchange rate 60 so at our group level ( INR) value would be 60,000/- INR

now second entry  ( 300$ ) in month of 2014.03 with exchange rate 61 so our group level ( INR) value should be 300*61=   18300/- INR

But system is showing (100+300)*61=24400.

If i am not wrong value should be 100*60  + 300*61  = 24300/- INR   in 2014.03

but as per system calculation is 24400

pls guide me how to handle with this Investment GL

Thanks,

Sam

[former_member225135 · Accepted solution]

Hi Sam,

It totally depend on your currency conversion setup. You can use TRANSACTION RATE in this case. This rate will vary for each transaction. But this will only work if you are executing monthly consolidation.

Regards,

Rahul

[Former Member · Accepted solution]

Hi Rahul,

Could you pls explain me how to setup rule for this:

I found one setup in RDS :

Could you pls help me inn this

Thanks,

Sumit

[former_member225135 · Accepted solution]

Hi Sam,

Hope you can understand from this setup:

For during the year addition, I am using "TRAN" rate (Transaction rate).

Regards,

Rahul

[Former Member · Accepted solution]

Thanks for quick response.

What i understood is:

Opening Investment: F_600

Addition if any during the current year = F_610 ( Increase) and F_620 ( Decrease).

I really appreciate if you can explain with output result in excel from above rule.

If Closing rate of previous year is 1.5* XCurr

Opening Rate of current year is 1.4 * XCurr

Closing Rate of current year is 1.6  * XCurr

pls help me to understand Result of FCTR ( Foreign currency translation reserve) calculation

Thanks,

Sumit

[former_member225135 · Accepted solution]

Hope this Help.

Regards,

Rahul

[Former Member · Accepted solution]

Hi Rahul,

Thanks you so much for this detailed and great explanation.

I got your point and solution for the investment GL and FCTR Calculation.

I want to know about last two lines or rules and result  80 USD Deletion Investment here

In this example (80*55 )*-1  for deletion inv but in rule formula is TRAN that means inv value will convert with 55 right ?? or 55*-1... Pls correct me if my understanding is wrong

and 80* ( 60-55)  would be result or 80*(60-55)*-1

Pls help in this.

Thanks,

Sam

[former_member225135 · Accepted solution]

Hi Sam,

That was my mistake.

When you will sale your investment, you will see credit of investment i.e. -80 not +80

So Conversion will be TRAN : -80*55

and FCTR will be : -80(60-55)

Regards,

Rahul

[Former Member · Accepted solution]

Hi Rahul

Thank you so much for this valuable explanation....

I have only one challenge now.. Transaction type ( Movement type) is not available at ECC level for addition and deletion of Investment .. Could you pls  guide me how can i get F610 addition Investment without transaction type.

As i am getting complete balances from BW under F600 Flow.

Should i write any script to get difference between last year and current year investment Amount and post differences under F610 and F620 at BPC level for FCTR calculation .

Thanks,

Sumit

[former_member225135 · Accepted solution]

Hi Sam,

For consolidation, It is advisable to activate movement type in ECC only. If it is not activated in ECC, you have to handle this in BW only based on some identifier.

You will not be able to identify addition/deletion in investment if you will write script in BPC.

Let say:

March 2014: Investment is 100,000 INR

March 2015: Investment is 150,000 INR.

It may be possible that the there may be frequent addition/deletion during the year and through script, you will not be able to get details for each addition/deletion.

Hope this solves your query.

Regards,

Rahul