EGL9.1: Why InterUnit Processor is not Using Rate Type from Ledger Group for InterUnit Journals Posting to Business Units With Different Base Currencies? (Doc ID 1474038.1)

Last updated on SEPTEMBER 14, 2016

Applies to:

PeopleSoft Enterprise FIN General Ledger - Version 9.1 and later
Information in this document applies to any platform.
***Checked for Relevance on 05-June-2014***

Goal

*Goal

This document will show an example where the InterUnit processor is not using the Rate Type from the ledger group for one of the secondary ledger journal lines when InterUnit journals are posting to business units with different base currencies. It will also explain why the system is doing this.

Setup:
General ledger business unit GB005 with base currency GBP.
Record Group ID FS_04 'Detail & Summary Ledgers' is linked to SetID GB005.
Ledger group ACTUALS with 'Keep Ledgers in Sync' enabled.
Ledger ACTCNS, base currency USD, Default Rate Type CLOSE and Rate Type CLOSE.
ACTLCL, Primary Ledger, OpenItem, VAT and Inherit Base Currency is enabled, Default Rate Type CRRNT and Rate Type CRRNT.
ACTUSD, Translation is enabled, Base Currency USD, Default Rate Type CRRNT and Rate Type CRRNT.

General ledger business unit US014 with base currency USD.
Record Group ID FS_04 'Detail & Summary Ledgers' is linked to SetID SetID US014.
Ledger group ACTUALS with 'Keep Ledgers in Sync' enabled.
Ledger ACTCNS, Base Currency USD, Default Rate Type CLOSE and Rate Type CLOSE.
ACTUSD, Primary Ledger, OpenItem and Inherit Base Currency is enabled, Default Rate Type CRRNT and Rate Type CRRNT.

Chartfield Inheritance is disabled for all GL related Inheritance Groups (for both Ledger Groups).

In Ledgers For A Unit (for both GB005 and US014), tab Currency Options, Rounding Adjustment Option = Add Adjusting Journal Line.
Click on link 'Rounding Adjust Chartfields' and define Chartfield Account = 899981.

Market Rate between GBP and USD for CRRNT is 1.55412230
Market Rate between GBP and USD for CLOSE is 1.67000700

 

Scenario:

1. Navigate to General Ledger > Journals > Journal Entry > Create/Update Journal Entries and add a new InterUnit journal for business unit GB005.

Line Unit Ledger Account Oper Unit Dept Affiliate Currency Amount Rate Type Rate Base Currency Base Amount
1 GB005 ACTLCL 100020 CALIF 14000   GBP 11.00 CRRNT 1.00000000 GBP 11.00
2 US014 ACTUSD 100022 CALIF 12000   GBP -11.00 CRRNT 1.55412230 USD -17.10

 

2. Run online or batch journal edit.



3. Review results primary ledger journal lines. Besides line 1 and 2 the following lines are generated after running journal edit:

Line Unit Ledger Account Oper Unit Dept Affiliate Currency Amount Rate Type Rate Base Currency Base Amount
3 GB005 ACTLCL 200200 CALIF   US014 GBP -11.00 CRRNT 1.00000000 GBP -11.00
4 US014 ACTUSD 100100 CALIF   GB005 GBP 11.00 CRRNT 1.55412230 USD 17.10
5 GB005 ACTLCL 899981 CALIF     GBP 0.00   1.00000000 GBP 0.00

 

4. Now review the secondary ledger journal lines:

Line Unit Ledger Account Oper Unit Dept Affiliate Currency Amount Rate Type Rate Base Currency Base Amount
1 GB005 ACTCNS 100020 CALIF 14000   GBP 11.00 CLOSE 1.67000700 USD 18.37
1 GB005 ACTUSD 100020 CALIF 14000   GBP 11.00 CRRNT 1.55412230 USD 17.10
2 US014 ACTCNS 100022 CALIF 12000   GBP -11.00 CLOSE 1.67000700 USD -18.37
3 GB005 ACTCNS 200200 CALIF   US014 GBP -11.00 CRRNT 1.55412230 USD -17.10
3 GB005 ACTUSD 200200 CALIF   US014 GBP -11.00 CRRNT 1.55412230 USD -17.10
4 US014 ACTCNS 100100 CALIF   GB005 GBP 11.00 CLOSE 1.67000700 USD 18.37
5 GB005 ACTCNS 899981 CALIF     GBP 0.00   1.00000000 USD -1.27
5 GB005 ACTUSD 899981 CALIF     GBP 0.00   1.00000000 USD 0.00

Solution

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