Comparing Multibook Translation Ledger Results to Translation in a Single Book Environment

Maintaining a translation ledger within a multibook ledger group results in the same ledger balances as performing a period-end translation on the actuals ledger. To illustrate, the following example starts with the ledger balances for actuals from the example above after revaluation is run on the ledger group with a single book translation: actuals (CHF) to ledger group (USD).

Beginning Ledger

The following table shows the ledger balances for actuals ledger after the revaluation is run on the ledger group:

Account	Currency Code	Transaction Amount	Actuals (CHF)
2001	MXN	100	29.7
8001	MXN	–100	–29.5
Gain/Loss	MXN	0	–0.2

Translation Journal

The following table shows the results of running the translation process on the actuals ledger. The translation is simplified for clarity in this example. The balance sheet accounts are translated at the CRRNT exchange rate and the profit and loss, or income statement, accounts are translated at an average rate.

Assume that these are the currency exchange rates:

Conversion and Type	Exchange Rate on Reporting Date
CHF to USD (CRRNT)	0.605
CHF to USD (AVG)	0.604

Ending Ledger

The following table shows the resulting balances of this single book ledger:

Account	Currency Code	SB Reports (USD)
2001	USD	(29.7 * 0.605) = 17.9685
8001	USD	(–29.5 * 0.604) = –17.818
Gain/Loss	USD	(–0.2 * 0.605) = –0.121
Translation Adjustment	USD	–0.0295

Compare the resulting balances of this single book translation to the balances in the report ledger of the ledger group MULTI-TRAN. The difference of .058 between the translation adjustment and the value for account 8001 is because the profit and loss, or income statement, account 8001 was translated at the AVG rate, and its offset is included in the translation adjustment. If an additional Translate Within Ledger step were defined earlier to process this account at the AVG rate type, the balances would be identical.