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General Ledger maintains translated balances for each day of an accounting period. When translating each day's average balances, the system multiplies the functional currency average by the average of the daily conversion rates for the period, up to and including the current day. For example:

Averages of Daily Conversion Rates Example
Day of Period	Daily Rate	Average of Daily Rates	Functional Currency Average	Translated Average Balance
1	1.10	1.100	1,000	1,100
2	1.12	1.110	1,000	1,110
3	1.15	1.123	1,000	1,123
:	:	:	:	:
:	:	:	:	:
31	1.17	1.148	1,000	1,148

Where necessary for specific accounts, you can use historical rates or amounts, rather than the averages of daily conversion rates. When you enter historical rates or amounts for an account:

• You can specify separate values for standard and average balances, or you can use the same value for both.

• General Ledger uses the specified value to translate the related balances.

• The same historical rate or amount will be used to translate average balances for each day of the period.

Quarter and Year Average-to-Date Translations

• Averages of daily conversion rates--translate quarter and year averages-to-date using averages of daily rates for all days in the quarter or year. For example, if the first quarter of a year includes January, February, and March, General Ledger will translate the quarter average-to-date balance for March 16th by multiplying the quarter average-to-date functional balance by the average of all of the daily rates between January 1 and March 16.

• Historical rates or amounts--translate quarter and year averages-to-date using the average of the historical rates or amounts for the appropriate periods, weighted by the number of days in each period.

See Also

Basic Business Needs

Average Balance Examples

Major Features

Effective Date Handling

Set Up and Maintenance

Consolidation

On-line Inquiry

Reporting