Translating Data

Currency translation converts data from one currency to another. You can translate data from the entity’s input currency to any other reporting currency that has been defined in the application. When you consolidate data, currency translation occurs if the parent entity has a different default currency than the child entities.

Financial Consolidation and Close provides default currency translations for a multi-currency application. By default, the translation process uses the Periodic Value (PVA) method for Flow accounts, and the Value at exchange rate (VAL) method for Balance accounts. The default method and exchange rate accounts used can be modified. See Specifying Default Translation Settings.

Translation is performed using calculation scripts and based on stored consolidated data. When the system performs translation, if data is not consolidated or if data is impacted, it automatically consolidates the data before translation. The system translates the stored consolidated amount to the Reporting currency by applying the applicable exchange rates.

Translation to Parent currency is performed as part of the consolidation process. If you want to translate data into a specific Reporting currency, you select the target Reporting Currency and perform translation. Only currencies enabled for reporting are available for Reporting currency translation.

All accounts within the Balance Sheet grouping ("FCCS_Balance Sheet") except for "Saved Assumption" accounts are translated. The default translation is based on the default translation settings that you have selected from the Translation Overrides screen (Periodic Translation at Average Rate is used by default unless modified).

All Movement dimension base (level 0) members are translated at the selected translation settings except for the Opening Balance Adjustment member. Any override account entries for accounts specified as Historical Amount Override or Historical Rate Override Exchange Rate Type accounts are then applied, replacing the default translations. If no override entries were made, then the Historical accounts remain translated at the default settings. Any deployed translation override rules are then applied, adjusting or replacing the default translation results.

Opening Balance Adjustment entries are deemed to be related to the prior period (for example, prior period adjustments). Opening Balance Adjustment entries are therefore translated at the prior period Ending Rate. Historical accounts are translated at the prior period "effective rate" (the ratio of the prior period Closing Balance translated amount divided by the prior period Closing Balance untranslated amount) on an account-by-account basis. It is possible that small extraneous amounts might create an invalid (unreasonable) effective rate that can incorrectly distort subsequent translation calculations. To avoid this issue, if the ratio of the calculated prior period effective rate to the prior period Ending Rate (or the reciprocal) exceeds 10, then the Ending Rate will be used for the translation (for example, if effective rate / ending rate < 0.1 or effective rate / ending rate > 10, then translate using the ending rate).

Foreign Exchange Variances (FX Opening, FX Movements) are then calculated to bring the aggregated Closing Balance to the equivalent of the untranslated Closing Balance translated at Ending Rate. Then for all accounts that are defined with an Exchange Rate Type of Historical, Historical Rate Override or Historical Amount Override, the calculated FX is reversed in either the FX-to-CTA or FX-to-CICTA movement members. The accumulation of these reversals for all accounts within the Balance Sheet top member (not the "FCCS_Balance Sheet" grouping, but the "FCCS_Total Balance Sheet" Traditional or Net Assets member) are then posted to the CTA or CICTA account (within the Balance Sheet, the reversal of the calculated FX and the posting to CTA / CICTA is a balanced entry).

After the translation process is complete, the translated data is stored. Adjustments can be made to the stored data using Configurable Calculation rules.

You can view the exchange rates used for calculations in a pre-defined data form. You can also use pre-defined forms to enter exchange rates and to enter override rates. See these sections:

To translate data:

  1. On the Home page, click Data.
  2. From the Forms list, click Data Status.
  3. Select the point of view.
  4. Select a cell for which to run translation rules.
  5. From the Actions drop-down menu, select Business Rules.
  6. From the Business Rules dialog, click Translate.
  7. When the translation process successfully completes, the system displays a confirmation message. Click OK.
    Note that if a translation is interrupted, it might be necessary to run a Force Translate to reset the system and complete the required translation.