Translation rates
Translation rates are the rates used to translate the balances of one company's base currency to the base currency of another company or to translate the balances of one company to one of the company's reporting currencies. This process is commonly performed once per period, after individual companies complete period closing.
You can define translation rates for actual or budget amounts.
Uses of translation rates
You must define translation rates for each currency relationship and translation code you translate balances for. You can define translation rates by currency table or by company. If you define translation rates by currency table, the rates are used as the default translation rates for all companies that use the currency table. You can define different rates for a specific company.
You need to define translation rates only for the financial statements you want to translate. For example, if you translate only balance sheets, then you need to define rates only for the translation code (or codes) assigned to your balance sheet accounts.