Specifying Default Translation Settings

By default, the system provides standard translation methods on all accounts with either a time balance property of Flow or Balance. You can select to change these settings and specify a default translation method and rate account for the application.

Security rights for Default Translation Settings

• Only service administrators can modify Default Translation Settings.
• Power users can view Default Translation Settings.
• Users and Viewers cannot modify Default Translation Settings.

System Default Translation Settings

When an application is first created, the system creates the following settings by default.

Balance account

• Translation method: Periodic
• Rate Account: Ending

Flow account

• Translation method: Periodic
• Rate Account: Average

Enabling Year-to-Date FX Variance Translation Calculations

For Flow accounts, by default FX Variance calculations are executed on a Periodic basis. You can set the FX Method to Year-to-Date to enable the Year-to-Date calculation of FX Opening and FX Movements when the default Translation Method for Flow accounts is Year-to-Date. To enable the YTD calculation, you must first add a substitution variable named YTDFXCalculation to the Consol cube and set the value to True. The FX Method option will then be displayed on the Default Translation Methods page for Flow Account, and you can select Year-to-Date.

Note:

Note: YTDFX Calculation is only available for Consolidation, and not supported for Reporting Currency translation.

When you enable YTD FX calculations, you must reconsolidate data from the starting year of the application.

In a non-DSO application, when YTD Translation is enabled while FX Method is Periodic, the FX_Movement member is translated using YTD instead of Periodic when the FCCS_Mvmts_Subtotal member is missing. To change this behavior, add a substitution variable named FXTranslationFix substitution variable and set the value to True.

In an application with YTD FX Variance Translation Calculations enabled, in some circumstances, extremely large numbers may occur in OBFXCTA/OBFXCICTA members. To resolve this issue, the YTDFXRatioThreshold is set by default to True. To disable this behavior, change the substitution variable value to False.

The YTDFXRevised substitution variable controls Year-to-Date FX calculation logic on historical accounts in the consolidation script for Movements. When the account is Historical, then no adjustment is made for the prior period FX on Opening Balance and FX on Movements for all individual accounts, OBFXCTA, OBFXCICTA, and R/E Prior. YTDFX will be enabled for the first year, so in the first year (except for the first period), the system will use YTD FX calculations. To disable this behavior, change the substitution variable value to False.

You can select different translation settings for the application to use by default. Default translation methods are applied throughout the application unless Point of View specific overrides exist.

Note:

Any changes to the default translation settings impact existing data in the application. The calculation status changes from OK to System Change, and the status for all reporting currency changes to Needs Translation. This applies to both locked and unlocked entities.

To specify default translation settings:

1. On the Home page, click Application and then click Consolidation.
2. From the Consolidation Process page, select the Translated tab.
3. From the list of rules, select Translation Overrides.
4. Click Manage Defaults.
5. When you open the Default Translation Methods page for the first time, it is populated with the system-provided default values. Select translation options for Balance and Flow accounts as needed.

   Balance account

   • Translation method: Periodic or Year To Date
   • Rate Account: Average or Ending

   Flow account

   • Translation method: Periodic or Year To Date
   • FX Method (only available if you have enabled FX Variance Translation Calculations)
   • Rate Account: Average or Ending

   Note:

   Although you can create additional rate accounts for an application, you can only select Average or Ending for the default translation accounts.
6. Click OK to save your changes.