Right now consolidation can be done with Accounting currency and Reporting currency. Some companies have requirement to

  1. revaluate their source company accounts on Exchange rate type 1
  2. revaluate their consolidation company accounts on exchange rate type 2

At the time on consolidation accounting currency amount move to Consol entity. Suppose in source company transaction in USD but its accounting currency is in EUR. In source company at the end of month amount revalute at Type 1 then these EUR amount move to consol entity. So only EUR is there in consol entity. We can not revalute USD transaction with Type 2 exchange rate.

This is also creating problems in eliminations. Due to this Eliminations journals are not getting balanced.

Category: Consolidations