Defining currency translation rates

Translation rates are used to translate company balances from a base currency to another base currency or to a report currency. If you will be translating budgets, then you must set up translation rates for the budgets you will be translating. You can define translation rates by currency table or by company.

If you want to use translation codes other than the two predefined translation codes, then you must define the translation codes before you can define translation rates for them. In addition, you must select Yes in the Currency Translation field in the Currency form tab of Company (GL10.1). Each currency relationship you define translation rates for must have Active selected in the Translation Status field in Currency Relationship (CU02.1).

Follow these steps to define translation rates for a currency table:

Access Currency Table Translation Rates (CU20.1).

Note: If you define translation rates by currency table, then 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 using Company Translation Rates (CU20.3).
You must enter a set of rates for each currency relationship and translation code that you use. At the minimum, you should have two translation codes: one with a type rate of Ending for balance sheet accounts; one with a type rate of Average for income statement accounts.
Define the translation rate. The rates you specify are specific to a currency table, currency relationship, fiscal year, and translation code. Use these guidelines to specify the field values:

From Currency

Select the company base currency code where you will translate balances.

A currency relationship must exist between the From and To Currency on Currency Relationship (CU02.1).

To Currency

Select the company base currency code that you will translate balances.

Year

Specify the fiscal year that you will define translation rates.

Budget

You can specify or select a budget number if you want to define translation rates for a budget (within the fiscal year you choose).

If you leave this field blank, then translation rates apply to actual account balances.

Translation Code

Specify or select the translation code that you will define translation rates.

Beginning Balance

You can specify the translation rate used to calculate the beginning balance amount. The beginning balance rate applies to budget translations only.

Rates

You can specify a translation rate for each period in the fiscal year. If the Budget field is blank, then the translation rates are applied to actual amounts. If you specify a budget number, then the translation rates are applied to budget amounts. You can specify translation rates for amounts or budget values.

Note: For currency relationships triangulated via the euro, do not define any translation rates.

See Setting up triangulated currencies.

Note: It is your responsibility to calculate the ending, average, or historical translation rates before entering them on CU20.1. The Currency application does not perform any edit or calculation on the rates you specify. When performing a translation, the translation program merely selects the rates to use in function of the currency table (or company) translation rates in effect for the applicable currency relationship, translation code, and period. The rate type determines whether to apply the translation rate to period (income statement) or year-end (balance sheet) amounts.