Translation and overrides value

Question

i am confused, which isn't hard to do. We have a USD currency entity that reports to a BRL currency entity.
In the USD entity we have placed an override value for common stock so that it maintains the same value on BRL regardless of latest exchange rate.
This works fine.
The problem is that at the parent level when we want to look value back in USD it does not give me the vlaue i expect in this case i get $74,000 instead of $77,000
Is this normal?
Parent Entity (Parent) has default currency of BRL
Child Entity (700) has default currency of USD
Enitity Currency BRL USD
Parent $128,000 $128,000 $74,000
i
700 $77,000 $128,000 $ 77,000

Answer 1

Here are the steps:
In <Entity Currency> and <Entity Curr Adjs> of each USD base entitiy (it should be written for all foreign currency entities but that would take more metadata and rules updates)
1) Create a list of [Ancestors] of the entity being calculated
2) If any ancestor is not USD then copy the balance sheet amount to a USD override account (we're assuming that if an ancestor is not USD then that data will at some point need to be translated back to USD)
- This requires that you add USD override accounts similar to your BRL override accounts using the same mapping to the balance sheet account (it does not appear from your rules that these accounts exist) and loop through them to copy the data using that mapping
After translation (HS.Value.IsTransCur) into USD (HS.Value.Currency = "USD")
3) Copy the USD override amounts from the USD override accounts into the corresponding balance sheet accounts (similar to how you are using the BRL overrides but this should not be dependent on whether the USD override amount is 'RealData' so it should always use the current period's amount and not last year's translated ending amount)
A few notes:
It is better to use a custom dimension to separate the override data from the trial balance date. It is more efficient from a consolidation perspective and less maintenance in regards to when new accounts are added or designated to use overrides.
Your rules seem to indicate that you are only using BRL overrides which is unusual for (I'm assuming) a USD application. That would mean there are either no other foreign currency entities are they don't have any equity/investement accounts. The rule I outlined above might not work if other USD overrides are being used.
The way your overrides are written restrict how you can build/change your Entity dimension - all translation into BRL must occur at a base entity or you could get incorrect data. If you had 2 USD entities consolidating to another USD entity and then into a BRL entity and one of those base USD entities had a manually entered BRL override it would use that one override for the entire amount in the BRL parent though it should represent a BRL amount from the 2 USD base entities.
Hopefully you understand that I do not want to attempt to write the above rules given that I am not familiar with your application but I could let you know if you are on the right track if you attempt to write them yourself and show me the rules.
Hope this helps.
Brian
Edited by: Brian Maguire on May 25, 2012 10:31 AM