Rounding Methods - Key Points
- During currency translation, minor rounding differences can occur.
- Rounding methods are used to post any rounding differences so the translated financial statements will balance to zero.
Round the Balance Sheet
The following image demonstrates a sequence tailored for rounding of the balance sheet values:
- Selection: All balance sheet FS items are included.
- Selection: Rounding: Not used in this example.
- Rounding Differences will post to FS item 314800 via its role.
Key points - Rounding
- The S-CT-RD-BS selection object includes items with currency translation attribute values of:
- CT-BS-HIST
- CT-ANI-BS
- CT-BS-CLO
- CT-BS-HIST-OPE
- Since this is balance sheet rounding, the 314800 balance sheet FS item is used for any rounding differences.
- Rounding sequence selections:
- Selection: Required.
- Selection: Rounding: Optional.
- If you only fill in the Selection box, the system totals up all the GC (group currency) values as specified in the selection attribute and checks to see if it equals zero. If the total amount doesn't equal zero, the system will post a rounding difference to the specified FS item in order to bring the total to zero.
- If you fill in both boxes, the system totals up all the GC values as specified in the Selection and checks to see if that equals the total of all the GC values as specified in Selection: Rounding. If the total amounts don't equal each other, then the system will post a rounding difference to the specified FS item in order to make the totals match.
Currency Translation Rounding for Annual Net Income and Retained Earnings
The following image demonstrates a sequence tailored for rounding annual net income and retained earnings:
- Selection: Current year retained earnings and annual net income FS items are selected.
- Selection: Rounding: Not used in this example.
- Annual net income and retained earnings rounding differences will post to FS item 799000 (referenced to FS item role S-ANI-PL).
- The S-CT-RD-ANI selection object includes items with currency translation attribute values of:
- CT-ANI-PL
- CT-ANI-BS
- All annual net income FS items are included
- Since the balance sheet is already balanced, the 799000 income statement FS item is used for any rounding differences.
Round the Income Statement
The following image demonstrates a sequence tailored for rounding annual net income and retained earnings:
- Selection: Current-year retained earnings and annual net income FS items are selected.
- Selection: Rounding: Not used in this example.
- Annual net income and retained earnings rounding differences will post to FS item 604000 (referenced to FS item role S-CT-ROUND-PL).
- The S-CT-RD-PL selection object includes items with currency translation attribute values of:
- CT-ANI-PL
- CT-PL-AVG
- All profit and loss FS items are included.