Periodic Average (PA) translation method

The periodic average translation method is designed for profit and loss accounts. The exchange rate is expected to be the average rate for the period being translated. In the example, the rate would be the average for the month.

The periodic average translation method multiples the period data by the period exchange rate. Translated values are aggregated based on the period hierarchy. An opening balance period is not used in the periodic average method.

Example

Period January February March Quarter 1
Data 1,000.0 1,100.0 1,000.0 3,100.0
Exchange Rate .981000 .981000 .981000 -
Translated Values 981.0 1,079.1 981 3,041.1
Period January YTD February YTD March YTD Quarter 1
Data 1,000.0 2,100.0 3,100.0 3,100.0
Translated Values 981.0 2,060.1 3,041.1 3,041.1