Accounts to override

Global Consolidation book setup
❶ Set up book info	❷ Select entities to consolidate	❸ Review and add journals	❹ Select accounts to override	❺ Add IET auto-elimination

By default, balance sheet and income statement accounts are consolidated using the exchange rate translation methods that you select on the Book information tab. Use Accounts to override to select the accounts that should use a different currency conversion method from those set up for the overall book.

To set the accounts to override, go to Consolidation > Setup > Books. Select the book to configure, then select the Accounts to Override tab.

Best practices for override accounts

• Non-monetary accounts are typically set to override and use the use the historical rate, which is the daily rate according to the Exchange Rate Date on each individual transaction line item. Examples of possibly non-monetary accounts include fixed assets, inventory, depreciation accounts for capital assets, amortization accounts for capital assets, goodwill, additional paid in capital and retained earnings. Determining which accounts are non-monetary are up to the company.
• If you're not sure of which accounts to override, many companies find that it's useful to include all of their equity accounts—including retained earnings—to use the historical rate.
• To ensure the best approach to reconciliation, set your income statement account to book into retained earnings account, instead of doing it via manual entry. Best practice advises against making manual book entries into retaining accounts.
• When you first set up a Global Consolidation account, you should have the initial non-monetary account balance, then book no further entries.

Select accounts to override

When you set up a new book, you can override the exchange rate translation method for any GL account.

For details about translation methods, see Global Consolidation exchange rate translation methods.

1. Move to the Accounts to override tab of Book setup.
2. You can see the GL accounts already included. Click in a blank GL account field to select an account to override from the drop-down menu.

3. In the Rate Type column, you can see the exchange rate translation method that is applied to that account. Generally, accounts you override should use the historical rate.

   About exchange rate translation methods

   Ending spot rate

   Ending spot rate is generally used for all balance sheet accounts, unless overridden in the Accounts to override tab. The ending spot rate reflects values as a snapshot of a particular date and is not typically used with retained earnings or other types of accounts (for details, see Historical rate).

   For accounts using the ending spot rate, Intacct calculates the CTA by finding the difference between the value at the end of the prior period and the end of the current period. The difference is the CTA, which is posted to the net asset account specified in the consolidation book.

   Weighted Average Rate

   Weighted average rate is typically used for all income statement accounts. All account activity for the reporting period is consolidated and translated using the weighted average rate. The weighted average rate is the average of daily exchange rates during a specific period. Intacct adds together the daily rate for each day in the period and then divides the sum by the total number of days in that period. For example, the weighted average rate for January 1-6 would include the daily rate for January 1, 2, 3, and so on, through January 6, summed up and divided by 6.

   When consolidating using weighted average rate, Intacct posts the following:

   • Balance sheet adjustment: This is the difference in exchange rates (prior month to current month spot rate) multiplied by the opening balance from the accrual book.
   • CTA as a sum of: 
     • Net asset adjustment: This is the offset posting for the sum of all the balance sheet adjustments created for each net asset account balance sheet adjustment between the current and prior month spot rate. This generates a balance sheet adjustment for each asset account with balances and a corresponding CTA net asset adjustment.
     • Net income adjustment: After all translations are done for all balance sheet account activity (using the spot rate), and income statement account activity (using the weighted average rate), the difference generates a CTA net income adjustment.

   Historical rate

   The historical rate is the currency exchange rate in effect at the time a transaction is performed, for example, when a fixed asset is acquired. The historical rate is typically used in the valuation of non-monetary accounts, including fixed assets, inventory, depreciation or amortization accounts for capital assets, goodwill, additional paid in capital, and retained earnings.

   The Accounts to override tab enables you to lock in the historical rates for non-monetary asset accounts for transaction dates. These accounts are not revalued every month. Any accounts you want to translate consistently using the weighted average or ending spot rates should be left out of the Accounts to override tab for the book.

   Sometimes an historical rate expires for an account listed in the Accounts to override tab. When this happens, Intacct continues to use the historical rate with the Intacct Daily Rate to translate all transactions for the account, rather than the weighted average or ending spot rates.

   If you have a consolidation book in which you mistakenly included accounts that do not belong in the Accounts to override tab, inactivate that book and set up a new one with the correct accounts added to the Accounts to override tab.

4. In the Rate Table column, select the rate table to apply to that account.

   • Available only if you selected Historical Rate as the Rate Type for the account. In this case, Intacct Daily Rate and any custom exchange rate tables you created appear in this drop-down menu.
   • Defaults to the Intacct Daily Rate.

5. In the Use rate table until column, select the calendar icon and then select the last period for which the Rate Table is valid.
   Best practice:Always include an Until date to avoid having to manually update the rate table indefinitely.

   • Available only if you selected a user-defined table as the Rate Table for the account.
   • The rate table is used for consolidations up to and including the date you select. This is the last period that will use your user-defined exchange rate.
   • After the Use Rate Table Until period, Intacct uses the Intacct Daily Rate. This enables you to match all the historical rate consolidations for the beginning balance while also using the Intacct Daily Rate for subsequent consolidations.

Next step: Proceed to Elimination accounts — Global Consolidation.

Remove an account from the list

To remove an account, put a check mark next to it on the list and select the trashcan icon.

If you already consolidated the book, then you'll need to re-consolidate the book after removing an account from the Accounts to override tab. Your changes to the Accounts to override tab will take effect after you re-consolidate.

Change rate table to use for multiple accounts

Consolidation provides a way to set the rate table for multiple accounts at one time, as long as the accounts are using the historical rate.

1. Add the accounts to override, or view the accounts currently selected.
2. Place a check mark beside each GL account whose rate table you are changing.
3. Select Change rate table for selected accounts to open the rate table selector.
4. In Rate table, choose the rate table to use from the drop-down list.
5. In the Use rate until field, include a date for the last period in which the selected rate table is valid. Always include a Use rate table until date to avoid having to manually update the rate table indefinitely.
6. Select Save.

Next step: Proceed to Elimination accounts — Global Consolidation.

Assign an exchange rate to a new GL account

A growing business often adds new accounts. Intacct automatically consolidates any accounts you add using the default translation method rate: ending spot rate for balance sheet accounts and weighted average rate for income statement accounts.

When a new account needs an historical rate, it's easy to add the account to an existing consolidation book. You then select an historical rate type and assign the desired exchange rate table to the account. You can continue your monthly consolidations without interruption even as your consolidation book expands to include new accounts.

For details about adding a new GL account to Intacct, see Add a General Ledger account.

1. Go to Consolidation > Setup > Books.

2. Select the book to which you want to add a GL account.

   The Book Setup page is displayed.

3. Review the translation methods you're using in the Multi-currency section.

   • If the balance sheet account currency translation method is Ending Spot Rate, Intacct defaults to the Ending Spot Rate for all new GL accounts.
   • If instead you must use the historical rate method for non-monetary accounts, such as fixed assets, long term assets, patents, and other deferred revenue or expenses accounts, move to the Accounts to override section, and find the account you just added.
4. Navigate to the Accounts to override section.
5. Select Add to add a row for a new GL account.
6. In the new row, select the GL account you want to add.
7. Select the Rate Type down arrow and then select the translation method you want to apply to this new account.

   Optionally, you can also select the Rate Table down arrow and select a custom rate other than the default Intacct Daily Rate.

8. If you chose a custom rate from the Rate Table column, select an expiration date for the custom rate in the Use rate table until column.
9. Select Save.

Field descriptions

Field	Description
Select historical rate date	This is the currency exchange rate in effect according to the Line-level exchange rate date defined on each transaction line item. The historical rate is the currency exchange rate in effect at the time a transaction is performed, for example, when a fixed asset is acquired. The historical rate is typically used in the valuation of non-monetary accounts, including fixed assets, inventory, depreciation or amortization accounts for capital assets, goodwill, additional paid in capital, and retained earnings. When using Historical Rate, specify the Rate Table you want to use. If using a custom rate table, then select the expiration date for the rate with the Use Rate Table Until column if needed. Choose one of the following options for the historical rate: Line-level exchange rate date: Selected by default. The exchange rate date shown for the line. Historical rate converts the source transaction amount using the Exchange Rate Date defined on each transaction line item using the exchange rate date for that line item. The transaction amount is translated during consolidation using the exchange rate date specified on the originating transaction. This option provides greater control over the rate used when recognizing revenue or expenses over a period. It also ensures future depreciation or amortization transactions created from the original transaction can use a consolidation date that differs from the original transaction date. This improves the predictability of your automated transactions. Transaction date: The date of the transaction. Historical rate converts the transaction amount using the exchange rate from the header date of the transaction.
GL account	Use this search field to quickly locate an account. Enter an account name or number, complete or partial, to show only accounts that contain that information.
Rate Type	This is the currency exchange rate in effect according to the Exchange Rate Date defined on each transaction line item. Ending spot rate is generally used for all balance sheet accounts, unless overridden in the Accounts to override tab. The ending spot rate reflects values as a snapshot of a particular date and is not typically used with retained earnings or other types of accounts. Weighted average rate is typically used for all income statement accounts. All account activity for the reporting period is consolidated and translated using the weighted average rate. The weighted average rate is the average of daily exchange rates during a specific period. Intacct adds together the daily rate for each day in the period and then divides the sum by the total number of days in that period. For example, the weighted average rate for January 1-6 would include the daily rate for January 1, 2, 3, and so on, through January 6, summed up and divided by 6. The historical rate is the currency exchange rate in effect at the time a transaction is performed, for example, when a fixed asset is acquired. The historical rate is typically used in the valuation of non-monetary accounts, including fixed assets, inventory, depreciation or amortization accounts for capital assets, goodwill, additional paid in capital, and retained earnings. For more information, see Global Consolidation exchange rate translation methods and Cumulative Translation Adjustment accounts and translation rate methods.
Rate Table	Select the exchange rate table to apply to that account. Available only if you selected Historical Rate as the Rate Type for the account. In this case, Intacct Daily Rate and any custom exchange rate tables you created appear in this drop-down menu. Defaults to the Intacct Daily Rate.
Use this Rate Table Until	Select the last period for which the selected rate table should be used. Available only if you selected a user-defined table as the Rate Table for the account. The rate table is used for consolidations up to and including the date you select. This is the last period that will use your user-defined exchange rate. After the Use Rate Table Until period, Intacct uses the Intacct Daily Rate. This enables you to match all the historical rate consolidations for the beginning balance while also using the Intacct Daily Rate for subsequent consolidations.
Remove	Use this to remove an account from the selected accounts list.