Currency translation
As a prerequisite, you must set up rate types to use for the currency conversion for each account. Select and specify the rate type in the Currency Method 1 column. You can specify additional methods if required. However, you can assign only one method for one data set. To assign currency translation methods in Financial Consolidation, select and specify the appropriate method in the Translation Method column.
Currency conversion is used to translate a local currency value into a reporting or group currency value. Group accountants maintain the rate types either by specifying the rates for different rate types or by importing the rates.
Financial Consolidation contains online currency translation that follows these rules:
- Accounts can be calculated with different rate types.
- Opening balances are calculated based on a base period.
- Rate types can differ between periods or versions.
- Currency translation difference that arises from the use of different rate types in financial statements is calculated.
- Movements for accounts that require a more detailed analysis are calculated. For example, a detailed analysis is required for note disclosure such as fixed assets in which the closing values for cost and depreciation are typically analyzed by reference to movements such as increases and disposals.
- Functional and group currencies can be changed.