Repository navigation
consolidation report with different base currency #189
Description
For consolidation in multi company report with different base currency, has this module consider the IAS 21 The Effects of Changes in Foreign Exchange Rates ?.
For consolidation in multi company report with different base currency, has this module consider the IAS 21 The Effects of Changes in Foreign Exchange Rates ?.
Activity
sbidoul commentedon May 8, 2019
IIRC all currency conversions are done using the date of the end of the reporting period.
hitrosol commentedon May 8, 2019
The reason I asked this because according to the standard, we have to make sure that P&L accounts are consolidated using monthly rates and B.S accounts using standard 'spot' rates of parent company.
In the other words, P&L accounts should be translated to base currency of the parent company in the historical rate.
In Odoo and this addons, I did brief check, and all the accounts are translated using the date rate report.
Meanwhile, I found addon that concern about this issue :
https://apps.odoo.com/apps/modules/11.0/account_consolidation/
fclementic2c commentedon May 8, 2019
Yes, I totally agree @hitrosol.
P&L account must be converted at average rate and BS account at month end rate.
You must have 2 tables to log xrate : for std and an other one for average rates -> see: https://github.com/OCA/currency/tree/11.0/currency_monthly_rate.
Then the currency rate difference you get must go in a P&L account.
see my doc about the https://apps.odoo.com/apps/modules/11.0/account_consolidation/
BS-Accoutingconsolidation-080519-1733-4.pdf
sbidoul commentedon May 8, 2019
I'm not disagreeing either ;) PR welcome.
sbidoul commentedon May 8, 2019
Note however that if you do that naively, a consolidated trial balance will not be balanced anymore. So there is food for thought there.
fclementic2c commentedon May 8, 2019
Well Account_consolidation + MIS is already a working solution.
... but maybe the goal is to ask MIS to do the job of MIS conso on the fly
hitrosol commentedon May 10, 2019
Thanks all for the same understanding about this. I also agree that the consolidation will be done on the fly, i think no need further journal entries should be created for this consolidation effort. I see ERPNext is quite advance to provide the similar feature. Regards.
github-actions commentedon Feb 6, 2022
There hasn't been any activity on this issue in the past 6 months, so it has been marked as stale and it will be closed automatically if no further activity occurs in the next 30 days.
If you want this issue to never become stale, please ask a PSC member to apply the "no stale" label.