Hi Mike B,
I have exactly the same issue (assuming I've interpreted your post correctly!). Due to the fact that retained earnings movements are translated at average rate and net assets at closing rate, in foreign currency we always end up with a residual balance in any given foreign currency consolidation after an entity has had all figures cleared out in its local currency. (In my experience this is the norm in terms of accounting simply because of the different FX used for retained earnings movements vs net assets closing positions, therefore generating a difference which ends up in translation reserve in any given foreign currency consolidation.)
My method for dealing with this is to have a form that is filled in by a user (top group admin type of user) which flags that an entity has been disposed or is no longer used in OneStream. This flag is then considered in a flow calculation which writes a value to retained that is equal and opposite to the residual balance left over in the foreign currencies which therefore brings the closing retained earnings balance to nil.
I'm happy to share the code and methodology with you if it helps.
Equally I would be very interested to hear if anyone has any other ways of dealing with this situation as I am sure it must happen in all businesses? Perhaps others have better/different ways of dealing with it?
Kind regards,
Richard
Richard:
Thanks for the response. That sounds like something about which I was thinking last year and just didn't want to add new code for this type of situation (since we have not completely closed-down an entity). But just a few days ago, what we did was to post a USD Override into or REAdjustment account in the closed entity (to zero-out that translated noise) and now we're good.
Thanks again!
Mike B.
Hi Richard,
Could you share the code and methodology with me please?
Thanks,
Takia
