Consolidation between two companies

vivektaurian

Hi All,

I am facing a problem during the consolidation of intercomapny.Scenario is as following:

"I have three company in which one company has its LCY as INR and the second has its LCY as USD.
When the following transcation happen in COMPANY-1 i.e Investment in Company 2 Dr 4500 (INR) and credit to Bank account 4500 (INR).
COMPANY-2 Bank Dr 100 (USD) & Cr to Share Capital 100 (USD).

When i consolidate these transcation in the third company i.e parent company at the closing rate of USD as 46.
The Invesment Account +4500
The Share Capital -4600.
Difference is -100 INR
Similarly for
Bank Account-1 -4500
Bank Account-2 +4600

Differnece is +100"

Now I want to know that the diffrence of -100 & +100 how Navision caters these diffrences.
what would be the solution for this.

ara3n

There are several option.

1. create a separate gl account for the difference.
2. ceep track of currency exchange rate at gl entry. Modify the consolidation to use the historical exchange rate.
3. use additional reporting currency to be USD in second company, and when you consolidate use the USD amount.


Hope this helps.