Exchange Rates for Consolidation

Group finance uses period exchange rates when reporting across entities with different home currencies. The consolidation screen records an Average Rate and an Ending Rate for each displayed fiscal month. These rates are separate from the daily rates used on foreign-currency transactions.

Before you start

• Access: The Setup menu shows this page to Firm Admin users when multiple entities are enabled for the company. Ask your administrator who maintains the approved rates.
• Where: Select the entity, then open Setup > Exchange Rates for Consolidation from the top menu, or Setup > Company > Exchange Rates from the side menu.

The group finance owner should approve the rate source and the periods to report. Check the company's Consolidating Currency for Financial Reports. When it is blank, the firm currency is used. The page shows Consolidating Currency and Internal Organization Currency. If they match, it says No Exchange Rates Required. Keep the rate approval and any external close work in the team's usual records.

Enter the monthly rates

1. Find the fiscal month for the selected entity. The table lists months only for fiscal years that already have posted transactions.
2. Enter the approved Average Rate. Follow the on-screen direction, Foreign Currency x Rate = the consolidating currency.
3. Enter the approved Ending Rate for the same month. Enter both rates for every month. A month without a rate is not flagged.
4. Leave each field by clicking elsewhere, or press Enter, to submit a positive decimal such as 1.250000. An entry of 1 alone does not submit through this control. When saved, the value is redisplayed with six decimal places. A value that stays as you typed it was not saved.
5. Repeat for each relevant month and entity with a different home currency. Reopen the page and compare the saved rates with the approved schedule before running consolidated reports.

Revenue and expense accounts use the month's average rate. Asset, liability, and equity accounts use the ending rate unless a GL account has its own fixed exchange rate. A quarter or year uses the simple average of its months' average rates and the last month's ending rate. A missing average rate can cause income-statement amounts to use a rate of 1. A missing ending rate can produce an incorrect balance-sheet result. Saving only one rate leaves the other field at 0. Review the consolidated result for unexpected figures before sign-off.

Connect the rates to the close

Each entity completes and reviews its own books first. Group finance then checks the approved rates, runs consolidated reports, and resolves differences with entity owners. Inter-entity balances or revenue may require separate reconciliation and approved elimination entries. Entering a rate does not create an elimination entry or revalue an open invoice or bill. For the group-close sequence, see Inter-Entity Period Close. For running reports, see Reporting in VersaCloud ERP. Setup > Daily Exchange Rates is a separate workflow.

If you don't see what you expect

• Month not listed: The table shows fiscal months of years that already have posted transactions. Check the selected entity and the intended fiscal year.
• No Exchange Rates Required appears: The entity already uses the consolidating currency.
• A value does not save: Enter a positive decimal and leave the field or press Enter. A failed save is not announced, so confirm the six-decimal display.
• The menu link is missing: Ask an administrator to confirm Firm Admin access and that multiple entities are enabled for your company.

Use these rates only after finance has approved them. The screen does not validate whether the approved rate schedule is complete.