Translating Data

Currency translation converts financial data from one currency to another. You can translate data from an entity’s input currency to any reporting currency defined in the application.

During consolidation, currency translation occurs automatically when a parent entity’s default currency differs from that of its child entities.

Default Translation Methods

Financial Consolidation and Close provides default currency translations for a multi-currency application.

  • Flow accounts: Periodic Value (PVA) method

  • Balance accounts: Value at Exchange Rate (VAL) method

You can modify the default translation method and the exchange rate accounts used for translation.

See Specifying Default Translation Settings.

Translating Data in Additional Cubes

If you enabled additional cubes in the application, the Business Rules list displays rules for those cubes.

You can select the cube in which to run translation, such as Consol2. Translation is then limited to the selected cube. By default, the cube is Consol.

See Adding Application Cubes.

How Translation is Performed

Translation is performed using calculation scripts and stored consolidated data.

Before translation:

  • If the data has not been consolidated, the system automatically consolidates it.
  • If the data is impacted, the system also consolidates it before translation.

The system then translates the stored consolidated amount into the reporting currency using the applicable exchange rates.

Parent and Reporting Currency

Translation to Parent currency occurs automatically as part of consolidation.

To translate data into a specific Reporting currency:

  1. Select the target Reporting currency.
  2. Run translation.

Only currencies enabled for reporting are available for Reporting currency translation.

Translation of Locked Entities

You can translate data to a Reporting currency even when the entity is locked, provided its calculation status is:

  • OK
  • System Changed

If the Entity currency calculation status is System Changed, the Reporting currency status also changes to System Changed after translation.

Accounts Outside the Balance Sheet Hierarchy

Accounts outside the FCCS_Balance Sheet hierarchy are generally translated and consolidated in the same way as accounts within the hierarchy.

This applies to accounts with the following account types:

  • Asset
  • Liability
  • Equity
  • Revenue
  • Expense

Saved Assumption accounts are not translated.

For example, Opening Balance and Foreign Exchange Variance calculations apply to these accounts, except for:

  • Income Statement accounts
  • Revenue and Expense accounts within Total Other Comprehensive Income
Excluding Accounts Outside the Balance Sheet

If you do not want accounts that reside outside of the Balance Sheet hierarchy to be included in the translation and consolidation process, you can create a Substitution Variable named ExtendAccountScope and set the value to False.

Exchange Rates and Override Rates

You can use predefined data forms to:

  • View exchange rates used in calculations
  • Enter exchange rates
  • Enter override rates

For more information, see:

Default Translation Settings and Overrides

Default translation uses the settings selected on the Translation Overrides screen.

By default, the system uses Periodic Translation at Average Rate, unless you modify the setting.

For members under the FCCS_Movements hierarchy, the selected translation settings apply except to:

  • Opening Balance
  • Opening Balance Adjustment

Thanslation adjustments are then processed in stages.

Override account entries are applied for accounts configured with:

  • Historical Amount Override
  • Historical Rate Override

These entries replace the default translation results. If no override entries exist, Historical accounts remain translated using the default settings.

Next, deployed Translation Override rules are applied. These rules can adjust or replace the default translation results.

Movement Members Outside FCCS_Movements

Movement dimension members created outside the FCCS_Movements hierarchy are also included in translation and consolidation calculations.

This includes:

  • Default translations
  • Translation Override rules
  • Translation Override entries
  • Configurable Calculation rules
  • On-Demand rules
  • Configurable Consolidation rules

This behavior is enabled by the ExtendMovementScope substitution variable, which is enabled by default. To disable the feature, you can change the value of the substitution variable to False.

The extended scope does not include members under these hierarchies:

  • FCCS_ClosingBalance_Variance
  • FCCS_CashFlow
  • FCCS_CashChange
Translation Override Processing Order

During translation, Translation Override rules are executed before Translation Override entries.

If you do not want override rules to be processed before Amount / Rate override entries, you can add a substitution variable named skipTransRulesIfOverrideRatesExist and set the value to False.

Acquisition and Disposal Movements

In applications with Ownership Management enabled, Acquisition and Disposal Movement members use the prior-period Ending Rate for translation.

This applies to the following dimension members:

  • FCCS_Mvmts_Acquisitions

  • FCCS_Mvmts_Acquisitions_Input

  • FCCS_Mvmts_Disposals

  • FCCS_Mvmts_Disposals_Input

For the following Historical account types, Financial Consolidation and Close uses the prior-period Effective Rate when translating Acquisition and Disposal Movement members:

  • Historical
  • Historical Account Override
  • Historical Rate Override

If the prior-period Effective Rate is unavailable—for example, because prior-period data was not consolidated due to a Consolidation percentage of 0%—the system uses the prior-period Average Rate.

For default translation of Historical accounts, Financial Consolidation and Close checks whether the calculated Effective Rate falls within the range (0.1, 10). If it falls outside this range, the system uses the Average Rate instead.

To remove the Effective rate threshold, you can add a substitution variable named DisableRateThreshold and set the value to True.

Opening Balance Translation

Opening Balance is always carried forward from the prior period’s Closing Balance for all stored levels of data.

Opening Balance is never translated.

Opening Balance Adjustment entries are treated as relating to the prior period, such as prior-period adjustments.

By default, these entries are translated using the prior-period Ending Rate.

For Historical accounts, however, the Opening Balance Adjustment is translated by default using the prior-period Effective Rate.

The Effective Rate is calculated as:

Prior-period Closing Balance translated amount ÷ Prior-period Closing Balance untranslated amount

This calculation is performed on an account-by-account basis.

If the prior-period Effective Rate is unavailable, such as when the prior-period data was not consolidated because the Consolidation percentage was 0%, the system uses the prior-period Average Rate.

To disable the default translation behavior for Historical accounts, create this substitution variable: TranslateOBOCAcqDispAtPriorER and set the value to False.

You do not need to consolidate historical periods. This variable becomes effective when there is a change in the Consolidation percentage.

Selecting the Prior Rate for Opening Balance Adjustments

The Consolidation Process Translated tab includes an option named Translate Opening Balance Adjustment with Prior Rate. This option lets you select either Average rate or Ending rate.

This option is only available if the TranslateOBOCAcqDispAtPriorER substitution variable is set to True.

If you select Ending rate, a Historical account’s Opening Balance Adjustment uses the prior-period Ending Rate when the prior-period Effective Rate is unavailable.

Foreign Exchange Variance Calculations

After translation, the system calculates Foreign Exchange Variances, including:

  • FX Opening
  • FX Movements

These calculations bring the aggregated Closing Balance to the equivalent of the untranslated Closing Balance translated at the Ending Rate.

For accounts with one of the following Exchange Rate Types, the calculated FX is reversed in either the FX-to-CTA or FX-to-CICTA movement members:

  • Historical
  • Historical Rate Override
  • Historical Amount Override

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 Translation

After translation completes, the translated data is stored.

You can make additional adjustments to the stored translated data using Configurable Calculation rules.

Limiting the Number of Concurrent Translation Jobs

Service Administrators can set Consolidation Settings to define the Maximum Number of Concurrent Consolidation and Translations, Maximum Concurrent Consolidation and Translation Jobs Per User, and the Maximum Number of Queued Jobs that may be executed. You can limit the total number of concurrent jobs for an application and define limits for individual users or user groups. Restricting the number of concurrent jobs can increase application performance by eliminating the length of time multiple jobs are queued and executed. To specify limits for concurrent consolidation and translation jobs, see Available Consolidation Settings.

Translation Steps

To translate data:

  1. On the Home page, click Data.
  2. From the Forms list, click Data Status.
  3. Optional: If you enabled additional cubes in the application, from the Cube dropdown, select the cube for translation.
  4. Select the point of view.
  5. Select a cell for which to run translation rules.
  6. From the Actions drop-down menu, select Business Rules.
  7. From the Business Rules dialog, click Translate.
  8. 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.