Balances by Currency Versus Summarized Balances
The ability to review balance amounts in different currencies depends on whether you post amounts in the F0902 table by currency. If you post balances by currency, you can review account balance amounts by currency in the F0902 table instead of reviewing summarized totals, which are meaningless because of the different currencies. For each company, you choose whether to select the Post Balances by Currency check box in the Company Names & Numbers program (P0010). If you do not select this check box, the system summarizes all currency amounts in one total amount. The total amount is a hash total and is meaningless because of the different currencies.
This tables describes the differences between posting balances by currency and not posting them by currency (also referred to as summarized balances):
Method |
Description |
|---|---|
Balances by Currency |
Separates transaction amounts for the transaction currency in both the CA (foreign currency) and AA (actual amounts) ledgers. To review balances according to the currency in which transactions occurred, set up the system to post balances by currency. For example, posting balances by currency enables you to review amounts that are posted to sales accounts in Canadian dollars, U.S. dollars, and British pounds and, by extension, to review the amounts sold in each country without using subsidiary accounts. |
Summarized Balances |
Does not separate transaction amounts by currency in the CA ledger. If you do not post balances by currency, the CA ledger contains numerous currencies, the totals in the ledger are meaningless, and the ledger does not balance. Posting summarized balances creates fewer records in the F0902 table than posting balances by currency, and therefore requires less disk space. The system uses the transaction detail to calculate currency totals for most reports. |
If you post balances by currency, you must also set up AAI items PBC xx for beginning and ending account ranges.