Translation Calculation (GL195)

Processing Effect

Information is translated based on the From Company parameters. If the company base currencies are different, the account balances are translated to the consolidation company's base currency based on the translation rate defined in Currency Table Translation Rates (CU20.1) and the translation code defined in Translation Code (CU05.1).

The Rate Type you select for the translation code in CU05.1 affects how the base currency amounts are translated. If you selected Ending Historical, or Historical Balance, amounts are reversed. If you selected Average, amounts are not reversed.

If the To Company uses zone balancing, offset transactions are generated in your transaction gain and loss accounts. Offset transactions are the difference in amounts between the exchange rate and the translation rate. Company zone accounts are defined in Interzone Relationships (GL30.1).

This program processes the account balance actual amount in the From Company and creates transactions in the To Company. The Translation Level field determines the consolidated level at which the From Company translates to the To Company.

If you run this program for a range of periods, the resulting journal entries are created for the last period in the range, or to the current period if the last period is closed. The journal entries have a "CT" source code and a Released status. You must post these journal entries before you close the accounting period for the consolidation period.