When we consolidate, a small balance remains on the parent’s account even if the subsidiary account balance is zero. This seems to be caused by the exchange rate and possibly the decimal places used.
For example:
Account 1456 in company CCIBU (base currency CAD) had a balance of CAD 2,001 at the end of Period 2. When this was consolidated to parent company CCICN (base currency USD) at the exchange rate of 1.239130, the balance in CCI is USD 1,564.01.
In Period 3, this balance in CCIBU was cleared by a CAD (2,001) transaction, so at the end of Period 3 its balance is CAD 0.00 . But when consolidated to CCICN at the exchange rate of 1.26465, IFS books USD (1,564.02) against the balance and USD 18.24 to a currency translation account. So in Period 3, there is a remaining balance of USD 1,564.01 - USD 1,564.02 = (0.01) . The balance should be zero instead.
So it seems like in the course of converting amounts when consolidating, IFS is missing small amounts when it clears balances. In the example above, I assume that the (0.01) balance should be hitting the currency translation account instead.
Is there a way to ensure that this does not happen? Or is there a way to get IFS to move that small balance out of the account to the currency translation account automatically? We are hoping that we do not have to move these amounts manually each month. Any thoughts and/or suggestions would be much appreciated.