Currency Translation Differences Balance Sheet

To ensure correct transfer, you must define these system accounts in Business Modeling:

  • The account that represents the currency translation differences from the balance sheet.

    Select Business Modeling > Modules > Consolidation > Balance Sheet. We recommend that you select Translations Reserve Balance Sheet account as the Currency Translation Differences account.

  • The account that represents rounding differences.

    Select Business Modeling > Modules > Consolidation > Balance Sheet. We recommend that you select Translations Reserve Balance Sheet account as the Rounding Differences account.

  • The account that represents the currency translation differences from the profit and loss.

    Select Business Modeling > Modules > Consolidation > Profit and Loss. We recommend that you select Translations Reserve Profit and Loss account as the Currency Translation Differences account.

After you define these accounts, you can publish the data model. We recommend that you set up all business objects and settings before you publish data.

In the opening balance, the Translations Reserve Balance Sheet account presents the closing balance of itself and the translation reserve that is generated from the source period's profit and loss. Because the entire profit and loss is transferred to retained earnings, the translation reserve must be transferred from the profit and loss to the balance sheet.