Translation rate types
Rate types determine how the specific translation rates used in a translation are computed and used. The Currency application has these rate types:
| Translation rate | Description |
|---|---|
| Average |
The average rate, calculated and entered by the user, is the sum of the individual exchange rates for a period divided by the number of days in the period. The rate is applied to the current period activity. This rate type is used to translate income statement account balances. |
| Ending |
The rate for the last day of the period. The rate is applied to the year-to-date ending balances. This rate is used to translate balance sheet account balances. |
| Historical |
The rate in effect at the time a transaction occurred. This rate is typically used for fixed assets. (For example, the date you purchased an asset.) A Historical rate does not mean a rate that never changes. If the translation code for the Historical rate is defined with changing rates, then the year-to-date account balances will be updated according to the rate in effect for the translation code at the time of the translation. |
| Hist Bal (Historical Balance) | The translated amount is calculated by multiplying each period's rate in the current year up through the current period by each period's activity up through the current period. These translated period amounts are then added together and combined with the current year's beginning balance to arrive at the total translated amount for the current period. |
Rate types are assigned to balance sheet or income statement accounts through a translation code.