Reason why Opening Balance of Current Period does not tie up with Ending Balance of Prior Period on a Consolidated Report

Opening Balance of Current Period does not tie up with Ending Balance of Prior Period on a Consolidated Report due to Consolidated Exchange Rates fluctuation overtime. This results to changes in report translation, without necessarily revaluating the balances. This is particularly true for Accounts that use Current Consolidated Exchange Rate type as General Rate Type.

Application of Consolidated exchange rates for Balance Sheet Reports is fairly straightforward, since the report is a snap shot report, it is set to an "As of" date. The Consolidated exchange rates applied to that report will be the rate for that Period. If a Balance Sheet Report is dated as of Dec 2013, then the rates applied will be the rates for Dec 2013.

However, for a report which uses a "date range" the rate applied will be the date on the "To" date field. If an Balance Sheet Detail report is set to Jan 2014 to Mar 2014, the Consolidated Exchange Rate that will be applied will be the consolidated exchange rate for Mar 2014. Regardless of the "From" date of the report, it will still use the consolidated exchange rate based on the "To" date.

Since the Balance Detail report shows the beginning balance for that period and it has applied the consolidated exchange rate for Mar 2014, it will not tie up with the ending balance for Dec 2013 who uses the Consolidated Exchange rate for Mar 2014.

 

To further illustrate, let us take the example below:

Balance Sheet Report As of Feb 2013

Balance Sheet Details From Mar 2014 to Mar 2014

Take note the difference between the Beginning balance and the Ending Balance as of Feb 2014. This is because the balance for Feb 2014 uses the Consolidated Exchange Rate for Feb 2014 and the Balance Sheet Detail report having a To date for March 2014 will use the Mar 2014 Consolidated Exchange Rates.