Conversion Rules page

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Purpose of the page

This page allows you to set up the conversion data processing in the modes and accounts that you are using.

IMPORTANT: the rules defined on this page can be edited and overridden for each individual process.

Page fields

In Generic rules:

Field	Description
Conversion at historical FX rate	Tells the system if any FS items, typically the net equity accounts, must be converted with the historical FX rate method.
P&L conversion method for the Consolidation	Strategy for currency conversion of P&L entries in the context of contribution data processing.
FX rate difference accounts	Allows you to set up accounts that the conversion data processing must use to allocate the FX rate difference, namely the FX rate difference accounts (Credit/Debit) and the Intercompany FX rate difference accounts (Credit/Debit) for the balance sheet and P&L.
Advanced	Allows you to manage FX rates in particular cases.

In FX rate difference accounts:

Field	Description
Balance sheet	Defines the accounts that the conversion data processing must use to allocate the FX rate difference, namely the FX rate difference accounts (Debit/Credit) for the balance sheet.
Intercompany Balance Sheet	Defines the accounts that the conversion data processing must use to allocate the Intercompany FX rate difference (Debit/Credit) for the balance sheet.
Profit & Loss	Defines the accounts that the conversion data processing must use to allocate the FX rate difference, namely the FX rate difference accounts (Debit/Credit) for the profit and loss.
Intercompany Profit&Loss	Defines the accounts that the conversion data processing must use to allocate the FX rate difference, namely the Intercompany FX rate difference accounts (Debit/Credit) for the profit and loss.
Override FX rate difference accounts	Opens a page to specify the FX rate difference type for each individual account. See Override FX Rate Difference Accounts page.

In Advanced:

Field	Description
Overridden Var. - Det. type for the FX rate difference on the year's net result	To highlight the FX rate effect deriving from the previous year’s profit, an ad-hoc variation can be specified, on which the system will allocate the FX rate difference. The same account defined for the balance sheet FX rate difference will be used, but on a different variation/detail type.
FX rates loading mode	Tells the Use FX rates from ownership structure register data processing the entities on which it must download the FX rates entered in the ownership structure register (see FX rate loading on consolidation scenarios data processing). - Amounts and Entity journals - Financial investments elimination journal/Net equity - Amounts, Entity journals and Financial investments elimination/Net equity
Alternative FX rates to Initial balance FX rate when the Initial balance variation is missing	For variations to be converted at the FX rate of the initial balance, the system calculates the rate to be applied by calculating the ratio of the converted amounts to proportional amounts of the initial balance variation. If there is no variation, it is necessary to specify the alternative conversion strategy, which may consist of using the Previous final FX rate or the Previous average FX rate.
Anticipate Intercompany FX rate difference on Original Scenario
Calculate	Anticipates the calculation of the IC FX rate differences on the original scenario to allow the minorities calculation to take place. Note: this option only applies to processes that use the standard consolidation engine (Databases). The In Memory consolidation engine does not need these settings since the conversion precedes the minorities calculation.
Reverse journal type	Defines the behaviour for the elimination journals for the anticipation of IC FX rate differences. - As IC elimination logic: the standard IC elimination logics are followed. - Set BS and Variations accounts to 0 and Write off P&L impact (IC): the variations will also be set to 0.