Consolidating foreign currency subsidiaries
These new settings on the main account form make it possible to do a foreign currency translation real-time in Management Reporter.When you translate financial statements, you end up with a Currency Translation Adjustment (CTA) which essentially is the difference created by using different exchange rates for translating different parts of your financial statements If you are using the current-rate method for an integrated subsidiary, the CTA should be included as a separate row in shareholders’ equity.You can also force the exchange rate if necessary, but I don’t like the idea of doing that as the history is lost each time you run the consolidation.Just like with the Management Reporter option, when you translate financial statements you end up with a Currency Translation Adjustment (CTA).Enter the row where you want to display the CTA in the Rounding adjustment row field and Management Reporter will calculate the difference and put it in that row. This approach assumes that the difference is 100% related to the currency translation.If you have any other differences like a missing account, they will appear hear as well.
If the parent does not actively participate in the subsidiary’s operating, investing, and financing activities, the subsidiary is self-sustaining.With Management Reporter CU7 and Dynamics AX 2012 CU5 or AX 2012 R2 CU2 or later, Microsoft has added a Management Reporter Fast Tab to the Main account form. Here you can define the Exchange rate type and Currency translation type.The exchange rate type determines the currencies and exchange rates you want to apply to the account and the currency translation type determines how the exchange rate for the account is calculated.If you are using the temporal method for a self-sustaining subsidiary, the CTA should be included as a separate row in net income.There are two options for dealing with the CTA in Management Reporter: You can use the Rounding Adjustments form in the row definition, as shown below.