You can translate your actual and budget account balances from your ledger currency to another currency. You can launch translation from the Translate Balances window or from the Standard Request Submission (SRS) window. Translated balances are stored in balance-level reporting currencies. Balance level reporting currencies are defined in the Accounting Configuration using the Accounting Setup Manager or automatically generated during translation.
If average balance processing is enabled, you can translate both average and standard balances. Run translation after you have completed all journal activity for an accounting period. If you post additional journal entries or change your translation rates after running translation for a period, you must retranslate. Additionally, if you change the account type for an account segment value and want to retranslate your actual account balances, you may need to purge past translations, change the account type assignment, then run translation.
Attention: When you first translate a balancing segment value, you establish the initial translation period. You cannot translate a period before the initial translation period for that balancing segment.
If you mark the All checkbox in the Translate Balances window and attempt to translate new balancing segment values, the program will not process any new balancing segments to prevent you from accidentally establishing the wrong initial translation period. If you add one or more new balancing segments, their first translation must be performed independently. After this first translation, you can mark the All checkbox to translate balances for all balancing segment values that have established initial translation periods.
When secondary tracking segment support is enabled for Closing and Translation in the Ledger window, translation will calculate translated retained earnings by summing the translated revenue and expense accounts associated with each unique combination of primary segment value and secondary tracking segment value pair. This amount is closed out to the matching detailed retained earnings account. The system also calculates a historical rate for each detail retained earnings account in the case of the YTD equity method of translation.
This behavior assumes you did not define a historical amount for the retained earnings account. Otherwise, translation will use the user-defined rate or amount.
When a cumulative translation adjustment is required to balance the translation, the cumulative translation adjustment account will be tracked by each unique combination of primary balancing segment value and secondary tracking segment value pair.
Note: We recommend you translate each period sequentially.
Note: Secondary tracking segment support does not apply to an average translation.
General Ledger uses one of two translation rules shown in the table below, depending on the account type being translated:
For Asset and Liability accounts, General Ledger always uses the Year-to-Date rule.
For owner's equity accounts, you can choose to use either of these two rules. If you do not choose a rule, General Ledger uses the Period-to-Date rule.
For income statement accounts, you can choose to use either of these two rules. If you do not choose a rule, General Ledger uses the Period-to-Date rule.
Note: If Historical Rates or Historical Amounts are used, they will override the period-average or period-end rates for all account types.
Translation Rules
| Translation Rule | Translation Period Amount |
|---|---|
| Period-to-Date (PTD) Rule | Translated Period Amount = Period Average Rate X PTD Ledger Currency Balance |
| Year-to-Date (YTD) Rule | Translated Period Amount = Period-End Rate X YTD Ledger Currency Balance - Beginning Translated Balance |
For translation or equity method translation, SFAS #52 and IAS 21 require you use the translation rates in accordance with the following table:
Rates Used for (Equity Method) Translation
| GL Account Type | Period-End | Period Average | Historic |
|---|---|---|---|
| Monetary Assets, Liabilities | X | ||
| Non-monetary Assets, Liabilities | X | ||
| Revenue, Expense Related to Monetary Items | X (YTD rule) | X (PTD rule) | |
| Revenue, Expense Related to Non-monetary Items* | X (YTD rule) | X (PTD rule) | |
| Equity | X |
For remeasurement or temporal method translation, SFAS #52 and IAS 21 require you use the translation rates in accordance with the following table:
Rates Used for Remeasurement
| GL Account Type | Period-End | Period Average | Historic |
|---|---|---|---|
| Monetary Assets, Liabilities | X | ||
| Non-monetary Assets, Liabilities | X | ||
| Revenue, Expense Related to Monetary Items | X (YTD rule) | X (PTD rule) | |
| Revenue, Expense Related to Non-monetary Items* | X | ||
| Equity | X |
Attention: Period-end and period-average rates types must be assigned when a ledger is initially created and are defaulted when balance level reporting currencies are automatically created for the ledger. However, you can change the period-end and period-average rate types assignment for the balance level reporting currencies before you run translation for the first time.
The daily rate that is defined for the last day of the period is used as the translation rate. If the rate for the last day of the period does not exist, translation searches back within the period until a rate is found. If no rate exists for the period, translation ends in an error.
Historical rates or amounts override period-end and period average rates for all account types. You should not define a historical rate or amount for an account in the Historical Rates window if you want General Ledger to select the period-end or period average rate for the account according to the above tables.
Note: * Income statement items related to non - monetary items include cost of goods sold, depreciation on property, amortization of intangible items, etc.
The following table summarizes the major differences in General Ledger setup steps for translation and remeasurement.
Note: The two steps below are the only places in the multi-currency setup flow where translation and remeasurement differ. The other steps are the same for the two translation methods and are omitted below.
Translation vs. Remeasurement
| Setup Steps | Translation (Equity Method) | Remeasurement (Temporal Method) |
|---|---|---|
| 1. Setup Cumulative Translation Adjustment Account | The account type must be owners' equity. (SFAS #52) | The account type must be revenue or expense. (SFAS #52). |
| 2. Enter Historical Rates in Historical Rates Table | Derive and enter historical rates or amounts for owners' equity accounts only. | Derive and enter historical rates for owners' equity accounts, non-monetary assets and liability accounts, and income statement accounts related to non-monetary items. |
Note: The above two steps are the only places in the multi - currency setup flow where translation and remeasurement differ. The other steps are the same for the two translation methods and are omitted.
When you translate your actual balances into another currency, General Ledger automatically adjusts the balance of the Cumulative Translation Adjustment account by the net difference needed to balance your translation results. If you have multiple companies or balancing entities within a ledger, General Ledger automatically adjusts the balance of the translation adjustment accounts of each company or balancing entity. If secondary tracking segment is enabled for your ledger, the Cumulative Translation Adjustment will be calculated by each unique pair of balancing segment and secondary tracking segment values. General Ledger does not make adjustments to this account when you translate budget balances.
Data Access Set
Your data access set must provide read and write access to the ledger or to the specific balancing segment value to run translation. If you only have partial read and write balancing segment values access, you can only translate balancing segment values that you have read and write access to. If you have partial read and write or read only access to management segment values, you cannot run translation.
Reporting Currencies
If you are using Journal or Subledger Transaction Level Reporting Currencies, you cannot run translation in these types of reporting currencies.
Prerequisites
Define a period in your calendar that precedes the first period you want to translate.
Define a period in your calendar following the period you want to translate.
Assign the conversion rate types for the period-average and period-end rates to your ledger using Accounting Setup Manager. Enter period - average, period-end and historical rates for your target currency.
Enter period and historical rates for your target currency.
Review the setting of the profile option GL: Owners Equity Translation Rule. If necessary, have your system administrator change the setting. See: Notes on Translating Owners' Equity Accounts.
Review the setting of the profile option GL Translation: Revenue/Expense Translation Rule. The default is PTD. If necessary, have your system administrator change the setting. See: Notes on Translating Revenue/Expense Accounts.
Review the setting for Secondary Tracking Segment option for your ledger.
If you are translating budgets, define your source and target budgets.
Navigate to the Translate Balances window.
(Optional) If average balance processing is enabled in your ledger or ledger set, select a Usage:
Standard: To translate standard balances only.
Average: To translate average balances only.
Both: To translate both standard and average balances.
Usage defaults to Standard.
Note: If average balance processing is enabled, you can translate both average and standard balances. Additionally, translation cannot be run in an Adjusting period for Average Balances.
Mark the All checkbox to translate balances for all balancing segment values, or enter a single Balancing Segment Value for which you want to translate balances.
Your data access set must have full read and write access to the ledger, or read and write access to all of its balancing segment values or management segment values to select All Balancing Segment. If you only have partial read and write balancing segment values access, you can only translate the specific values that you have read and write access to. If you have partial read and write, or read only access to the management segment values, you cannot run translation for that ledger. The following table displays the Balancing Segment options for the different types of data access set privileges.
| If you have this Data Access Type | with read and write access of | you can select the following translation balancing segment option |
|---|---|---|
| Ledger | All | All Values or Single Value |
| Balancing Segment Value | All | All Values or Single Value |
| Balancing Segment Value | Specific | Single Value |
| Management Segment Value | All | All Values or Single Value |
| Management Segment Value | Specific | Cannot Run Translation |
Note: If you are launching translation from the Standard Request Submission (SRS) window, leave the Balancing Segment parameter empty to select all balancing segment values. The empty balancing segment parameter defaults to All.
Attention: Marking the All checkbox translates balances for all balancing segment values that have been previously translated. If you add one or more new balancing segments, their first translation must be performed independently. After this first translation, you can mark the All checkbox to translate balances for all balancing segment values.
Select Actual for the Balance Type to translate.
Enter the Target Currency to which you want to translate. If you are translating a ledger, you can choose any enabled currency other than your ledger currency. If you are translating a ledger set, you can choose any enabled currency. Ledgers with a currency that is different than the target currency are submitted for translation.
The Target Ledger defaults to the reporting currency with the same target currency if a ledger is selected. The Target Ledger is disabled if a ledger set is selected.
Enter the Period of the balances you want to translate.
Attention: The Period you enter the first time you translate actual balances will be the earliest period for which you can translate actual balances for any subsequent translations.
Choose the Translate button to begin a concurrent process to translate account balances. General Ledger displays the request ID (ReqID).
Note: Translating both standard and average balances generates two separate concurrent requests; one to translate standard balances and one to translate average balances.
You can launch translation for a ledger or ledger set from the Translate Balance window or the Standard Request Submission (SRS) window by running Program - Translate Balances. When you run translation from the Translate Balance window, the program checks if a balance level reporting currency is assigned to the ledger or ledgers in a ledger set, and checks if translation has been previously run for the target currency. General Ledger performs the following actions:
Launch Translation from Translate Balances window.
Note: You cannot submit an average translation using the Standard Request Submission window. Only standard translations are available.
| Ledger | Ledger | Ledger |
|---|---|---|
| If a reporting currency is assigned | and the first-ever translation period is established | the following action will take place |
| Yes | Yes | Submits translation |
| Yes | No | Uses the entered period as the first- ever translated period and submits translation. |
| No | No | Creates a balance-level reporting currency that uses the entered period as the first-ever translated period and submits translation. |
| Ledger Set | Ledger Set | Ledger Set | Ledger Set |
|---|---|---|---|
| If a reporting currency is assigned to each of the ledgers in the ledger set | and the first-ever translation period for the ledger is established | the following action will take place if you select Yes to auto creating reporting currency and setting the initial translation period | the following action takes place if you select No to auto creating reporting currency and setting the initial translation period |
| Yes | Yes | Not Applicable *will automatically submit translation | Not Applicable *will automatically submit translation |
| Yes | No | Uses the entered period as the first-ever translated period and submits translation. | Submits translation only for ledgers with assigned balance level reporting currencies that has established the first-ever period for the entered currency. |
| No | No | Creates a reporting currency (balance level), uses the entered period as the first-ever translated period and submits translation. | Submits translation only for ledgers with assigned balance level reporting currencies that has established the first-ever period for the entered currency. |
If you are launching translation from the Standard Request Submission (SRS) window, the program checks if a reporting currency is assigned to the ledger or ledgers in a ledger set, and checks if translation has been previously run for the target currency. General Ledger performs the following actions:
Launch Translation from Standard Request Submission (SRS) window.
| If you select a | with a reporting currency assigned to the ledger or to each of the ledgers in the ledger set | and the first-ever translation period is established | the following action will take place |
|---|---|---|---|
| Ledger | Yes | Yes | Submit translation. |
| Ledger | Yes | No | Uses the entered period as the first- ever translated period and submits translation. |
| Ledger | No | No | Creates a balance level reporting currency and uses the entered period as the first-ever translated period and submit translation. |
| Ledger Set | Yes | Yes | Submits translation. |
| Ledger Set | Yes | No | Does not submit translation. |
| Ledger Set | No | No | Does not submit translation. |
Note: Translation defaults the name of the balance level reporting currency to name of the ledger and appends the currency code, for example, Operations (USD). You can update the name of the reporting currency by using the Accounting Setup Manager.
The Currency Translation Options of period-average and period-end rate types assigned to the ledger is used as the default Currency Translation Options for the balance level reporting currency. You cannot update the reporting currency's Currency Translation Options after you have run translation for the ledger. You need to purge the translated balances first before updating the Currency Translation Options for the reporting currency. The Currency Translation Options for the ledger can be updated at any time.
You can only query and report against balance level reporting currencies. You cannot run translation in journal or subledger transaction level reporting currencies.
You can only translate budget for a ledger, not ledger sets.
Navigate to the Translate Balances window.
Select a ledger for this translation.
Select the All checkbox to translate balances for all balancing segment values, or enter a single Balancing Segment Value for which you want to translate.
Your data access set must have full read and write access to the ledger, or read and write access to all of its balancing segment values or management segment values to select All Balancing Segment. If you have partial read and write access to the balancing segment values, you can only translate balancing segment values that you have read and write access to. If you have partial read and write or read only access to the management segment values you cannot run translation for that ledger. The following table displays the Balancing Segment options for the different types of user responsibility's data access set privileges.
| If you have this Data Access Type | with read and write access of | you can select the following translation balancing segment option |
|---|---|---|
| Ledger | All | All Values or Single Value |
| Balancing Segment Value | All | All Values or Single Value |
| Balancing Segment Value | Specific | Single Value |
| Management Segment Value | All | All Values or Single Value |
| Management Segment Value | Specific | Cannot Run Translation |
Note: If you are launching translation from the Standard Request Submission (SRS) window, leave the Balancing Segment parameter empty to select all balancing segment values. The empty balancing segment parameter defaults to All.
Choose Budget as the Balance Type to translate.
Mark the All checkbox to translate balances for all balancing segment values, or enter a single Balancing Segment Value for which you want to translate balances.
Enter the Target Currency to which you want to translate. If you are translating a ledger, you can choose any enabled currency other than your ledger currency. If you are translating a ledger set, you can choose any enabled currency. Only ledgers with a currency that is different than the target currency are submitted for translation.
The Target Ledger defaults to the reporting currency whose currency is the same as the target currency.
Enter the Period of the balances you want to translate. You can translate budget balances for any period regardless of the period you choose to translate first.
Enter the Source budget whose account balances you want to translate, and the Target budget for which you want to calculate translated account balances. You can translate one source budget into one or more target budgets.
Attention: You should not translate more than one source budget into the same target budget for the same period and currency because each source budget translation will override the balances in your target budget.
Note: You can only translate budget amounts that are entered in the ledger currency.
The budget year containing the period you are translating must be open in your source budget.
Enter the Period-Average and Period-End rate types you want to use to translate this budget.
Note: If your conversion rate types are assigned to definition access sets, you must have Use privilege to select a conversion rate type.
Choose the Translate button to begin a concurrent process to translate account balances. General Ledger displays the request ID (Req ID).
Note: Secondary Tracking with the Closing and Translation option enabled does not apply to translation of budget balances.