2 Replies Latest reply: Oct 4, 2013 7:30 PM by Hyp201207 RSS

    How to handle FX Variance caused by Push Downs in HFM?




      The users were asked to book an amount in August 2013 in goodwill account which was actually the Dec 2012 balance. Hence, there is FX Variance caused due the difference in rates in Aug Vs Dec.

      So the business wants to book a journal to adjust the FX Variance without changing the original GL account balances.

      We created a new C2 member for this adjustment where we originally had our Fx structure and wrote a rule so the member won't translate (as the adjustments are submitted in USD itself).

      But the issue is when we book a journal to the account and use the new C2 "FxAdj" it is actually changing the balances. Please suggest how you handled similar situations in HFM.




        • 1. Re: How to handle FX Variance caused by Push Downs in HFM?
          Thanos A.

          Hi there,


          I believe that you are working on translating the opening balance movement of a balance sheet account. Is this correct? Can you give more details on how you are doing that in you application?


          Based on my experience, the best approach is to make have a restatement of 2012 and post the new journal in 2012. The new opening balance will be copied to 2013.


          If this is not possible you can create a new member OpenBalAdj in order to post the new value of goodwill. This movement should be translated with opening rate and not the closing rate. In the FXAdj member that you created, you will post the translation difference between opening rate and closing rate for the value that you post in the OpenBalAdj.





          • 2. Re: How to handle FX Variance caused by Push Downs in HFM?

            From a technology approach, if you don't want a custom member to consolidate, just set it's aggregation weight to zero.