Notes on Translation with Historical Rates and Amounts
If you have defined historical rates or amounts in the Historical Rates window, General Ledger will determine one of two different amounts which is then used to arrive at a translated balance for your account:
Account Balance: General Ledger uses the historical amount you've provided or translates the account using the historical rate you've provided, and uses the resulting amount as the YTD translated account balance.
Net Activity: General Ledger uses the historical amount you've provided or translates the account's net period activity using the historical rate you've provided, and uses the resulting amount as the translated net period activity for the account. The amount is added to the previous period's translated balance to arrive at the current period's translated balance.
The amount used depends on whether the account to which the historical rate or amount applies is a revenue/expense, asset/liability, or owners' equity account:
Revenue/Expense: The amount is treated as translated net activity for the period.
Asset/Liability: The amount becomes the YTD translated balance for the account.
Owners' Equity: If the profile option GL: Owners Equity Translation Rule is set to PTD, the amount is treated as translated net activity for the period. If the profile option is set to YTD, the amount becomes the YTD translated balance for the owners' equity account.
See Also
Entering Historical Rates
