Defining currency translation codes (GL/CU)

Note: The two predefined translation codes are BS (Balance Sheet), which is assigned by default to all balance sheet accounts, and IS (Income Statement), which is assigned by default to all income statement account. BS has a rate type of Ending while IS has a rate type of Average.

Translation codes identify the type of translation rate to apply to an account balance to calculate the translation value. You can accept the two default translation codes provided by the Currency application, or you can define your own translation codes and assign them to detail accounts.

  1. Access Translation Code (CU05.1).

    Alternatively, to define multiple translation codes, click Multiple Entry from CU05.1 to open Translation Codes (CU05.2).

  2. Define the currency translation codes. Use these guidelines to specify the field values:
    Translation Code

    Specify a translation code and description. This field is required.

    Rate Type

    Select how base currency and report currency amounts are translated by Translation Calculation (GL195), Report Currency Translation (GL196), and Translation Calculation (FB195).

    Select a rate type:

    • Ending - A rate type for current type balance sheet accounts. Translation is made against the year-to-date balance and each period is automatically reversed.
    • Average - A rate type for income statement accounts. The translation rate is an average of all rates for the period. Translation is made against the period balance. The translated year-to-date is an accumulation of the translated periods. These translations are not auto reversed each period.
    • Historical - A rate type for historical type balance sheet accounts. The rate reflects the time period the account balance represents. Translation is made against the year-to-date balance and automatically reversed each period.
    • Historical Balance - A rolling balance is created with period amounts, which are translated at their period rates.
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