VladimirPonomar
Member
Hi, List.
Here is a brief description of our situation: We have a hyper-inflationary
domestic currency. In order to comply with IAS reporting requirements, we
need to depreciate our fixed assets using historical dollar value of the
fixed asset. We can do it in JDEdwards Fixed Assets module: just use a
separate ledger for IAS depreciation, we can even use different depreciation
rates if we need to. But there is one simple step, which we are still
missing: we need to enter the dollar value to IAS depreciation ledger.
Here are alternatives I have examined:
1. Enter purchase transaction in USD, do depreciation in CA ledger -
generally a bad idea, 'cause we'll lose original currency of purchase.
2. Enter purchase transaction, do detailed currency restatement, move
restated amounts to depreciation ledger with an allocation, post allocated
amounts first to G/L and then to Fixed Assets - it even works, but it's a
very complex process for a simple task, and it lacks control, because it has
to be a monthly process.
3. Setup depreciation ledger as USD currency ledger, then setup Fixed Asset
Rule for this ledger to take values from AA ledger (method 3, source ledger
AA). The problem is, JDEdwards won't convert amounts it passes from AA to
depreciation ledger - it'll use rate of one, and then we have an incorrect
amount with correct currency code.
4. Just enter two Journal Entries: one to AA, the other to depreciation
ledger. I expect response line will point me this way, but it's so clumsy...
and so prone to error...
Question: Does anyone know a better way to do multi-currency accounting for
Fixed Assets, or and think of a way to improve above methods?
Thank you in advance,
Vladimir Ponomarev
Here is a brief description of our situation: We have a hyper-inflationary
domestic currency. In order to comply with IAS reporting requirements, we
need to depreciate our fixed assets using historical dollar value of the
fixed asset. We can do it in JDEdwards Fixed Assets module: just use a
separate ledger for IAS depreciation, we can even use different depreciation
rates if we need to. But there is one simple step, which we are still
missing: we need to enter the dollar value to IAS depreciation ledger.
Here are alternatives I have examined:
1. Enter purchase transaction in USD, do depreciation in CA ledger -
generally a bad idea, 'cause we'll lose original currency of purchase.
2. Enter purchase transaction, do detailed currency restatement, move
restated amounts to depreciation ledger with an allocation, post allocated
amounts first to G/L and then to Fixed Assets - it even works, but it's a
very complex process for a simple task, and it lacks control, because it has
to be a monthly process.
3. Setup depreciation ledger as USD currency ledger, then setup Fixed Asset
Rule for this ledger to take values from AA ledger (method 3, source ledger
AA). The problem is, JDEdwards won't convert amounts it passes from AA to
depreciation ledger - it'll use rate of one, and then we have an incorrect
amount with correct currency code.
4. Just enter two Journal Entries: one to AA, the other to depreciation
ledger. I expect response line will point me this way, but it's so clumsy...
and so prone to error...
Question: Does anyone know a better way to do multi-currency accounting for
Fixed Assets, or and think of a way to improve above methods?
Thank you in advance,
Vladimir Ponomarev
