Anybody can explain how to calculate currency translation adjustment

[Former Member]

Anybody can explain how the currency translate adjustments are calculate in FX business rule or is there any document we can reference?

[Former Member]

Hi Jian,

it's not too complicated. Look at your standard conversion rules that you have already set up. For example, the profit and loss is converted at the averagre rate and the balance sheet at the closing rate.

From these rules you can work out where a difference could come from, in my simple example it would come from the profit for the period. You then add to the rule for that conversion (profit and loss) by defining additional calculations to post the difference you expect to the FX account in the balance sheet.

BR,

Arnold

[Former Member]

Hi Jian,

You can find lot of currency translation related document and notes in Google as well as in SCN. Also there is 2 to 3 video are available in youtube,which is really very helpful for learning currency translation.

Khokan

[Former Member]

I am looking for the document about how to calculate the CTA in currency translation, not how to do the currency translation.

[damovand]

Hello,

I know you have to have a separate rule that has "Apply to Periodic" flag checked.  Take a look at note 1447462.

Best Regards,

Leila

[Former Member]

Hi Jian,

CTA is not only related to adjustment of currency difference but It refers to the full process of currency translation i.e.-  Required dimension properties , Business Rules, Script Logic , Loading exchange rate , Loading financial data , Executing currency translation task.

The document i.e. CTA  you are searching in the web is not going to be find by you because it totally depends on business requirement. It contains logic regarding how you want to adjust the currency difference which is generated after currency translation, the difference which you  want to adjust by manual input , journal posting or you post the difference value to some other GL.

Khokan