Zeroing-out a local Euro Entity, still has USD amounts in RE that need to also zero-out.

[mfbradford]

Wondering how we can zero-out the translated FX noise in a local (Euro) base entity that has the accumulated FX noise showing up in USD after the entity has all of its local currency balances zeroed out.  

We have some adjustment USD sibling entities to this Euro entity in question but entering an offset in that entity does not remove the translated USD amount. 

If we set the properties to Is Consolidated = False, would this completely remove that entity from consolidated history (if we were ever to go back and reconsolidate the system)?

Has anybody encountered this and what did they do?

Thanks.

Mike B

[Henning]

Hi,

Ideally, one takes time to post the offsets and checks the translation rules to align all of this so this also balances out after the translation. I do recognize that this takes time and costs money. One of the other approaches for you may be test setting the percent consolidation of that entity to 0% from a certain month onward as this setting can vary by time.

[Richard_Mayo]

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

[mfbradford]

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.

[Richard_Mayo]

Hi Mike,

Thanks for the response, sounds good. If you get a moment could you explain how you post a USD (or I guess any foreign currency) override please? I was under the impression we could only load into an entity's local currency so perhaps your way of dealing with the problem would have been easier than mine! (ie. I had previously thought that numbers only appear in foreign currencies via either standard translation logic or where a member formula/BR posts to a foreign currency, hence why I dealt with this via a flow formula).

I'm not familiar with the process of posting an override as you described, so would be very interested to learn about how you do that.

Thanks,
Richard