Translation method D for intercompany currency differences

Issue:

For our Group consolidation we are translating P/L figures using translation method D (Average Period rates).

But on intercompany transactions Cognos Controller calculates and post currency differences based on translation method M (Average Year rate). We are booking currency differences separately from real differences, as they should not be included as business related income/cost. Unfortunately the different translation method compared to our usual P/L translation method messes up both the amounts on currency difference accounts but also real difference accounts.

Impact:

We are aiming to use real differences and currency differences differently to better understand the business figures, but we simply cannot gain any value from the split, as we cannot rely on the values shown in neither of the two account types. As we are running very significant amounts of intercompany transactions throughout our group, and in addition working with very fluctuating currencies like ARS (Argentine peso), it affects our internal business explanations and reports crucially that we cannot split out the currency differences for our individual divisions within the group.

The issue impacts the 37 users we have on Cognos, but more specifically it is creating less transparent data for our Executive management and Board of Directors receiving reports created from our Cognos Controller consolidated data.

Solution:

To simply add translation method D (Average Period rates) as a rule to calculate and book intercompany currency differences.