Translating actual amounts using Report Currency Translation (Intracompany)

Note: To make sure currency gains or losses from rate changes are recorded before you generate financial statements for the report currency, you can run Currency Revaluation (GL191) before running Report Currency Translation (GL196).

Note: To translate a Multi-Book Ledger company balances using report currency translation, use Ledger Report Currency Translation (ML196). Follow the same procedure described here. For more information, see the Multi-Book Ledger User Guide.

Use this procedure to translate from a base currency to a report currency within the same company. For each balance sheet and income statement account balance, this program translates the amount from base currency to report currency, compares the translated amounts with the current report currency amounts, and posts the difference to a gain or loss account.

Access Report Currency Translation (GL196).

Note: The rate type you select in Translation Code (CU05.1) affects how the base currency and report currency amounts are translated. If you select a rate type of Ending or Historical, then the year-to-date amounts are updated. If you select a rate type of Average, the amount for the period you select in this form is updated. If you select a rate type of Historical Balance, then a rolling balance is created with period amounts which are translated at their period rates.
Run the program. Use these guidelines to specify the field values:

Company

Select the company that has the base currency you want to translate.

To Currency

Select the report currency you want to translate to.

Update

Select No to get a listing of the entries that will be created. When you are satisfied with the results, select Yes and run the program to create a released journal entry, with a source code of CU.

Fiscal Year

You can specify or select the fiscal year you are translating currency in. If you leave this field blank, then the current year becomes the default value.

Periods

(From) You can translate currency for a specific range of periods. Specify or select the beginning period in this field. If you leave this field blank, then the currency is translated for the current period.

(Through) You can translate currency for a specific range of periods. Specify or select the ending period in this field. If you leave this field blank, then the beginning period is the default value.

Report

This field determines if the report prints. The default setting is Yes.

Print Message

You can indicate whether the print all messages (the default) or suppress historical rate messages.
Post journal entries on Journal Posting (GL190).

Impact on General Ledger

GL196 creates transactions with a Released status so journal posting is required. Translations are based on the translation rate in effect for the period. Transactions are created for the period activity instead of ending balance so no reversing entries are required.

Translation gain and loss accounts defined on System Accounts (GL00.7) are used to create balancing journal entries.