The profile option GL: Translation: Revenue/Expense Translation Rule lets you use two translation methods when translating revenue and expense accounts.

When the profile option is set to PTD, the PTD translation rule is applied.

When the profile option is set to YTD, the YTD translation rule is applied.

If you have a business requirement to use both translation methods throughout the year, such as the PTD method during the year for managerial reporting and the YTD method at year-end for legal reporting, you should define additional currencies used solely for translation purposes.

For example, if you must translate balances to Japanese Yen using both PTD and YTD translation methods, define an additional JPY currency called JPYTRANS. The additional currency represents the Japanese Yen Translation currency used as an alternative currency representation of translation.

When you run translation each period, set the profile option to PTD, and run translation for the JPY currency only to use the PTD rule. Then, change the profile option to YTD and re-run translation for the same period using the JPYTRANS currency. This allows you to maintain both types of balances of both currencies that use different translation methods.

To choose the translation rule used for revenue and expense accounts:

1. Review the setting for the profile option GL Translation: Revenue/Expense Translation Rule. There are two settings:

   PTD: Revenue and expense accounts are translated using the Period-to-Date rule and assigned period-average rates.

   YTD: Revenue and expense accounts are translated using the Year-to-Date rule and assigned period-end rates.

2. Have your system administrator set the profile option to the method your organization uses for translating revenue and expense accounts.

Restating Previously Translated Balances

If you change translation rules for your revenue and expense accounts, you should restate your previously translated balances. Revenue and expense accounts will be translated using the new rule for new translations only. Previously translated revenue and expense balances will not change.

To restate your previously translated revenue and expense balances after switching the translation rule:

1. Purge the old translated balances for each period to be restated.

2. Change the GL Translation: Revenue/Expense Translation Rule profile option to the desired setting.

3. For each period to be restated, update the assigned period end or period average rates in the Daily Rates window as necessary.

4. For each period to be restated, update any rates defined in the Historical Rates window for revenue and expense accounts as necessary.

5. Run translation for every period starting with the earliest period to have your revenue and expense accounts translated using the new rule.