Choosing the Best Time to Run the Utility
In principle, you can run the Statutory-Currency Utility at any time. However, if you run the utility in the middle of the financial year, there will be some unresolved issues:
• The exchange gains and losses on historical transactions are not recalculated in the utility, and are translated from the base currency to the statutory currency. This translation occurs because, for exchange gains and losses, the transaction currency is the base currency. This situation means that the realized statutory currency exchange gains and losses that result from the conversion utility are not the real gains and losses.
• Historical year closing postings are translated from the transaction currency closing and reopening balances to the statutory currency. If the Statutory exchange rates in the system for the year closing posting date are not consistent, the closing and opening postings can become unbalanced. Therefore, make a one-time manual journal entry adjustment in statutory currency after you run the utility to obtain the desired statutory currency opening balances.
For the reasons listed in the previous two points, it is recommended that you implement statutory currency at the beginning of a new accounting year.