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 |