Translation

It is used for reporting purpose. It is used to translate actual or budgeted balances from functional currency to foreign currency at account balances level. The difference in translation will be transferred to “Translation adjustment account”. In translation we use period end rate, historical rates and average rates.

Rates Types	Applicable to
Average Rates	Expenses/ Revenues A/c's
Period End Rates	Assets/ Liabities A/c's
Historical Rates	Ownership Equity A/c's

Rules: 

1. Translation should be done in subsidiary companies only. 
2. Translation should be done periodically. 
3. When you are translating a period the first and after period should be open. 
4. Translation can’t be performed for the first period.

Setup Steps:
1. Create “Cumulative Translation Adjustment” A/c at account segment value.
2. Define exchange rate type.
3. Define daily rates.
4. Assign rate type & CTA account to ledger.
5. Run Translation.
6. Run Trial balance Translation report.

Step 1: Define “Cumulative translation adjustment A/c” at account segment value.
Navigation: Setup --> Financials --> Flex fields --> Key --> Values
Query your account Segment

Say New and "Cumulative Translation Adjustment A/c" with Qualifiers as "Yes.Yes.Ownership.No.No"




Step 2: Define Exchange rate type.
Navigation: Setup --> Currencies --> Rate --> Types
Click on new to enter new rate type and Description for it.

Step 3: Define Exchange Rate.
Navigation: Setup --> Currencies --> Rate --> Daily

Click on "Enter by date Range" and give chose currency, conversion from date and to date.

Step 4: Complete Translation options at ledger level.
Navigation: Setup --> Financials --> Accounting setup manager --> Accounting setup

Query you Ledger

Click on Update Accounting Options.

Go to Primary Ledger Region and click on Update and Go to Ledger Options Tab, and fill the Currency translation Options region.

Say Finish and confirmation message will Pop Up and close it. 

Step 5: Run Translation
Navigation: Currency --> Translation.

Select Usage, Target Currency and Period.

Click on Translate

Note: Enter the Target Currency to which you want to translate. You can choose any enabled currency other than your functional currency.

Click on Translate Button after give mandatory information.

Click on View --> Request 

Ensure Translation Request completed normal.

Step 6: Run “Trail balance: Translation” program.
Navigation: View --> Request --> Submit a new request -->single request.

Click on View --> Request 

Ensure Translation Request completed normal.

Now click view Ouput, to check the data in target currency