Hi Hasan,

Apart from translating the primary ledger’s account balances in the parent’s functional currency, giving that we can attach journal level reporting currency, subledger level reporting currency and secondary ledger to a primary ledger for the purpose of a consolidation press, what would normally dictate the choice accountants would go for? Is the choice of the above ledgers to use based on the accountants “mood”?

Please, explain the implication of each of the choices available.

Thank you.

I remember touching upon some related points in my videos.
Here is a related post that might be of interest to you: http://handsonerp.com/forum.html?func=view&id=1965&catid=2

I just created this very high level decision flow chart that might help.

STEP 1. Is reporting ledger or secondary ledger required? If yes which one?

QUESTION: Is there a need to have a secondary representation of your primary ledger in a different C (Chart of Account, Calendar, Currency, Convention)?
NO -> Then all is well. Do not worry about anything.
YES ->
QUESTION: Would secondary representation differ only in currency?
NO -> Secondary Ledger should be created
YES -> Reporting Ledger should be created

STEP 2. Which level of reporting/secondary ledger should be created (Balances, Subledger, Journal)?

QUESTION: Is there a requirement to view journal details in secondary representation?
NO -> You need balances level reporting/secondary ledger (journal detail is not needed)
YES ->
QUESTION: Should the activity in subledgers copied over to the secondary ledger when the accounting is created in subledgers (as oppose to when subledger journals are posted in GL)?
YES -> You need subledger level reporting/secondary ledger (create accounting program will keep journals in sync for subledger activities, and for the rest, journal posting program will do the job).
NO -> You need journals level reporting/secondary ledger (journal posting program will keep journals in sync for subledger journals as well as manual journals).