When creating allocations from one company to another in which the currencies are different may be a little tricky.
We have done it in two different ways depending upon the type of allocation.
Scenario one:
Allocating expenses from Company 73 in GBP to Company 60 in USD.
Index allocation was setup where we are allocating from bu 73 ledger type "CA" (you will get a warning) to BU 63 (company 60), ledger type "AA" and the contr-clearing account is in company 60. Here, we are always going from USD to USD. The index rate is 1.0. It is VERY important to note the end users know that the CA ledger for company 73 will always be USD. My client in this case only worked with 2 currencies regarding these 2 companies. This may NOT work in which there is transactional activity in other currencies for the same company.
Scenario two:
Allocating expenses from Company 73 in GBP to Company 60 in USD.
Index allocation was setup where we are allocating from bu 73 ledger type "AA" (you will NOT get a warning) to BU 63 (company 60), ledger type "AA" and the contra-clearing account is in company 60. Here, we are always going from GBP to USD. In this case you MUST key in the exchange rate otherwise your numbers will make no sense. This type of allocation you want to avoid in most cases because it usually means you need to go into the allocation and change the exchange rate. In my clients case, the exchange rate was an historical rate that never changed, so it worked out nicely.
Feel free to e-mail me if you have further questions:
[email protected]
Alex