Steps: Set Up Alternate Ledger Currency
- Review the setup considerations for alternate ledger currency. See Setup Considerations: Alternate Ledger Currencies.
- Configure asset accounting and enable multibook asset accounting. See Steps: Set Up Asset Accounting.
- Set up persisting noncontrolling interest to ensure accurate primary ledger accounting. See Steps: Set Up for Persisting Noncontrolling Interest.
- Opt into the redesigned retained earnings reporting feature. See Upcoming Changes for Redesigned Retained Earnings Reporting.
- Prepare your allocations configuration and existing allocations for alternate ledger currency. See Concept: Alternate Ledger Currency in Allocations.
- Find and post all transactions and manual journals inDraft,Created,In Progress, orReservedstatus.
- Calculate your beginning balances.
- Correct any journals in error.
You can configure an actuals ledger in an alternate ledger currency (ALC) for your company. ALC enables you to have 2 ledgers that you can use to generate financial statements in your local and functional currency. You can post operational and accounting journals to the appropriate ledgers in the respective ledger currency.
- Configure theAlternate Ledger Currency Setupsection. Once you complete the configuration, you can't disable ALC.
- Upload the currency conversion rates for ALC and respective transaction currencies to use for the first ALC period.For recorded transactions that have downstream impacts in future periods, upload the currency conversion rates between transaction currency and ALC in the prior periods. Workday requires these exchange rates to generate accounting in ALC accurately.Example: A supplier invoice posts in March 8, 2024. You configure ALC to start April 1, 2024. You pay the supplier invoice on April 15, 2024. To calculate realized FX gain/loss on the payment, Workday requires the rate on March 8th, 2024 between transaction currency and ALC.
- Set up multibook asset accounting to register and track your assets independently in each ledger currency.
- Set up ledger currency mapping to report on primary and alternate ledger journals.
- (Optional) Edit existing accounting journal custom validations to evaluate for only a specific ledger.Include either thePrimary Ledger JournalorAlternate Ledger Journalreport field as theSource External Field or Condition Rulein the validation rule. When you don't include either report field in the validation rule, Workday applies the validation to both primary and alternate ledgers.
- (Optional) Enable Journal Sequencing for a Company.Configure journal sequencing for the alternate ledger to sequence your ledgers independently.
- (Optional) Create reversals in ALC for automatic accounting journal reversals that are posted or inCreatedstatus and not posted to a primary ledger.
Workday creates an additional ledger denominated in the configured ledger currency beginning the respective fiscal year. The ALC journals post in the first open period.
Create and post:
- Operational journals to both primary and alternate ledgers.
- Accounting journals to a single primary ledger or alternate ledger, or both ledgers. See Steps: Process Accounting Journals.