Concept: Alternate Ledger Currency in Assets
You can register, track, and depreciate assets independently in your local and functional currencies when you:
- Configure an alternate ledger currency. See Steps: Set Up Alternate Ledger Currency.
- Set up multibook asset accounting. See Steps: Set Up Multibook Asset Accounting.
- Associate nonprimary accounting books with the alternate ledger currency. See Add Asset Books to Companies.
Accounting Considerations
When you perform lifecycle events on assets, Workday:
- Creates 1 operational transaction for each asset book.
- Posts 1 journal to the ledger and book code configured for each asset book, for lifecycle events with accounting impact.
When displaying the accounting for asset transactions in the primary or alternate ledger, Workday doesn't link to the operational journal for the other ledger. You can access operational journals in the primary or alternate ledger currency from the
Cost Detail
tab on assets.Asset Book Rules Considerations
You can configure asset book rules only in the primary currency of the company, even for asset books in an alternate ledger currency. To prevent asset book rules from populating incorrect accounting treatments on assets when currency exchange rates change, Workday recommends that you periodically:
- Review asset book rules and convert amount thresholds in the primary currency of the company.
- Review and update the accounting treatment of assets registered since the last evaluation.
Reporting Considerations
In standard reports, Workday uses the currency of the asset book you select to display amounts. When you don't select an asset book, Workday uses the currency of the primary asset book.
In custom reports, you can use the
Book Currency
report field on the Business Asset business object to display the asset book currency. The Book Currency
report field returns either:
- The asset book currency, when you select an asset book.
- The currency of the primary asset book, when you don't select an asset book.
To reconcile asset activity and ledger accounts, Workday recommends that you:
- Copy theAsset to Ledger Reconciliation – Accumulated DepreciationandAsset to Ledger Reconciliation – Costreports and enable theLedger Currency Mappingprompt.
- Select a ledger currency mapping when you run the copied reports.
Selecting a ledger currency mapping enables you to view journal lines in the alternate ledger currency when you drill down on ledger amounts.
In-Flight Supplier Invoices
When you create assets from supplier invoices and these assets are pending registration when you enable an alternate ledger currency, change and submit the supplier invoices after you complete the asset registration. This enables Workday to populate asset costs in your books in an alternate ledger currency.