Foreign Exchange, Intercompany, and Consolidation

These workflows govern multi-currency and multi-company evidence. Configure legal entities, branch assignments, accounts, currencies, and open periods first.

Foreign Exchange Control

Open Planning & Assets → Foreign Exchange Control. The workspace has Exchange Rates, Foreign Open Items, and Revaluation Runs.

Exchange rates

Create a rate with currency, rate type (Spot, Closing, Average, Historical), rate date, rate, source, and evidence. The current system currency rate may be suggested, but must be reviewed. Workflow: Draft → Pending Approval → Approved or Rejected. Only approved effective rates can support governed journals.

Monetary accounts and open items

Configure a foreign-currency ledger account with position (Monetary Asset or Liability) and realized/unrealized gain/loss accounts. Then create an open item with branch, monetary account, approved historical rate, reference, foreign amount, recognition/due dates, and evidence.

Statuses are Open, Partially Settled, and Settled. To settle, enter foreign amount, settlement date, and an approved spot rate. Forkiva posts the cash/control settlement and only the realized FX difference.

Revaluation

Prepare a run with branch, closing rate date, reversal date, and evidence. It freezes eligible open items and calculates unrealized gains/losses. Submit → Approve → Post; posting adjusts carrying amounts at period end. Reverse creates compensating evidence, commonly on the configured reversal date.

Intercompany Reconciliation

Intercompany records one economic event between two legal entities and posts a balanced journal in each company book.

Create with reference/pair identifier, source and counterparty entities/branches, source due-from and counterparty due-to accounts, each side's counter account, transaction date, currency, approved historical rate, amount/base amount, and evidence.

Draft → Submit → Approve → Match and Post → Reverse both journals
                    ↘ Reject

Match and Post creates both mirrored journals only after both sides agree. The detail page shows company-side values, journal evidence, maker/checker, match, rejection, and reversal history. Reverse Both Journals preserves originals and posts linked reversals in both books.

Consolidation Groups

Open Consolidations → Manage Groups. Enter group code, bilingual name, presentation currency, active status, and member entities. Each ownership row has legal entity, ownership percentage, effective from/to. Ownership periods must not overlap.

Consolidation Runs

Choose group, covered period, and close evidence to Prepare Consolidation. Preparation freezes entity balances, ownership, currency translation, and eliminations without changing company books.

The run exposes Trial Balance, Profit and Loss, Balance Sheet, Cash Flow, Equity, Eliminations, and Top-side Adjustments. Add an adjustment with optional entity, account, one debit or credit amount, and evidence; the complete adjustment set must balance before approval.

Statuses: Draft → Prepared → Approved → Closed, with Rejected and Reversed alternatives. Closing freezes the approved version. Reversal preserves evidence and does not rewrite source-company ledgers.

Note: Multi-branch reports are not statutory consolidation

The regular Multi-branch Trial Balance, Profit and Loss, and Balance Sheet simply aggregate branches without ownership, translation, or elimination adjustments. Use Consolidation Runs for governed group reporting.

Common Problems

• No approved rate for the currency/date: create and approve the right rate type.
• Currency/account mismatch: use an account configured for that foreign currency.
• Intercompany sides do not agree: correct Draft evidence before matching.
• Unbalanced top-side adjustments: add the corresponding debit or credit line.
• Entity missing from a run: review group membership, ownership dates, and branch assignments.

Review results in the relevant journals, FX workspace, consolidation statements, and Reports.