Translation converts values from one currency to another. The data in the local currency of the dependent entity is translated to the currency of the parent using the local currency exchange rate.
You can enter currency rates by entity for base entities. If you enter currency rates by entity, during translation, the system uses the current entity for the direct translation rate. For example, if the entity currency rate is Euro, and the parent currency rate is USD, the system uses Rate.Euro.USD in the entity that is being translated. If you do not enter currency rates by entity, the system derives the direct rate from the indirect rate in the current entity. For example, it reverses the amount stored in Rate.USD.Euro to obtain Euro/USD.
If the currency rate is not found in the current entity, the system uses the direct rate in the None entity. If the rate is not found, the system derives the direct rate from the indirect rate in the None entity. For example, the system reverses the amount stored in Rate.USD.Euro to obtain Euro/USD. See the Oracle Hyperion Financial Management Administrator’s Guide.
After the translation rule is run, the translated currency dimension is stored. You can make adjustments to the translated amounts in each currency through journals.
The total of these two levels (Translated and Adjusted data) represents the starting point of the consolidation process. The translation process does not take place if the entity and the parent have the same default currency. In this case, the system moves directly to the consolidation process.
As a dependent entity's values roll up into its parent during consolidation, the system can store consolidation detail, such as Proportion and Elimination detail. Proportion detail contains the balances resulting from the execution of consolidation rules. It also reflects the results of the percent consolidation on the base values. Elimination detail contains any eliminating balances that result during consolidation based on elimination rules.
The system derives as aggregation the contribution (before adjustment) values. It is still possible to adjust this data through journals. The system executes chart rules for adjustments to contribution after you post the journals.
The total of the contribution data (before adjustments) plus the adjustments represents the contribution of the base entity to its parent. The system adds the contribution to the contributions of the other immediate dependents of the parent to obtain the parent consolidated data. The intermediate contribution level aggregations are not stored during calculation. However, the parent consolidated data is stored by the system.