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Historical Rates for Previous Periods, Dynamics GP

In Microsoft Dynamics GP, the use of Historical Rates requires some manual entry to establish the correct translation for prior periods. After the initial prior period Historical Rates are setup, the system will manage the Historical Currency Translations going forward as part of the closing process.

To enter prior period historical conversions, use the Currency Translation window to translate beginning balance information for “average” and “historical” currency translation types. You also can enter translated beginning balance amounts for a new translation currency or correct translated beginning balance amounts. You don’t translate beginning balances for the “current” translation type because the current translation type uses the report date for the exchange rate.

Currency Translation in Microsoft Dynamics GP® and Management Reporter, the 2nd in the Consolidation Accounting Series

The purpose of this White Paper is to provide design requirements for performing Multicurrency Translation in Dynamics GP and Management Reporter.

Consolidated Currency Translation

This document covers the required setup to perform multicurrency consolidation in Dynamics GP and Management Reporter. It leverages the design concepts presented in the first white paper in the Consolidation Accounting Series, Consolidation design in Microsoft Dynamics GP and Management Reporter. This White Paper focuses on setting up both Microsoft Dynamics GP and Management Reporter to successfully perform multicurrency consolidations.

Dynamics GP Currency Translation Setup

  • Functional Currency
  • Create Exchange Tables and Enter Rates
  • Create the Month End, Average, and Historical TRANSLATION Exchange Tables Management Reporter Translation Setup
  • Multicurrency Access
  • Multicurrency Setup
  • Rate Types
  • Translation Type for Accounts
  • Entering Historical Currency Translations

 Management Reporter Translation

  • Create Report
  • Create a column indicating the reporting currency required
  • Create a report definition
  • Cumulative translation adjustments under FSFAS 52 (OCI)
  • Validate the Account settings

Summary

Multicurrency translation can be very complex and include the need for multiple company account structures, companies outside of Dynamics GP, minority interest, international accounting standards, and more. Having a well-thought-out multicurrency design adds significant value to any consolidation process.

This white paper is intended for Accounting and Financial users and consultants that are responsible for producing consolidated financial statements in Dynamics GP and Management Reporter.

Request a free copy “Currency Translation in Microsoft Dynamics GP® and Management Reporter®” at http://unifiedbiz.com/currency-translation