To calculate automatic rate difference sums, unit sums are first converted to group currency for the input accounts. The following settings are applied when converting the sums:
•The account-specific currency conversion setting (Income statement, Balance sheet, Opening balance, or No conversion).
•The currency type setting (Periodic or Cumulative) of the currency table connected to the data type.
•Currency rates defined for the period (with a periodic currency table for an account with conversion method Income also the currency rates of previous periods).
The sum is generated to the rate difference account as follows:
•The sum(s) of the rate difference account's source account are converted according to the settings of the rate difference account.
•The source account sum(s) are converted according to the source account settings.
•The latter value is subtracted from the former value.
•The sum is saved to the rate difference account.
If the source account is a sum account, the calculation is performed for all its input accounts, and the automatic rate difference entry is the sum of the resulting differences. The automatic rate difference entries are generated only in the group currency, not in the unit currency.
A comment of the following format is displayed for automatic rate difference entries when drilling down to view the entries: Source_Account_ID -> Target_Account_ID. For example, ARD00001:231000 -> 210200.
No automatic rate difference entries are created in the following cases:
•The currency conversion setting of the source account or rate difference account is No conversion. If the source account is a sum account, no automatic rate difference entries are created if all input accounts of that sum account have No conversion as the currency conversion setting.
•The source account or rate difference account is not connected to the selected data type.
•The source and rate difference accounts have the same currency conversion and cumulative setting.
•The type of the used currency table is cumulative, and the source and rate difference accounts have the same currency conversion setting.
Entries created for the eliminations of equity investments are also subject to automatic rate difference calculations.
The following is an example of the most common setting. Settings: Table 16: Currency rates and account settings
Account 203 is a sum account. A cumulative currency table is used and figures are cumulative. All accounts are credit accounts and show DK parameter is not used. Input data consists of one Swedish company: Table 17: Input data in SEK
Conversion to group currency: Table 18: Group currency amounts
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