Currency translation

Select the reporting basis

This system’s group reporting currency is USD. Each accepted entity submission retains its functional currency and the reviewed translation treatment. The rule identifies the required rate type, account or account class and effective period. Customer accounting policy determines when a closing, average or historical rate is appropriate; importing a rate does not establish that policy.

The standard foreign-functional-currency workflow translates reviewed account balances into the reporting currency. Remeasurement, unusual capital structures and acquisition-specific treatment require their own configured evidence and method. An unsupported method leaves a visible exception instead of applying an apparently convenient average to every balance.

Make missing rates visible

Create a requirement for each currency, rate type and effective date needed by the frozen close inputs. Each requirement points to the accepted rate or remains Missing. This makes absent information a real work item rather than a fictitious row in the rate table. A rate must be positive and match the expected currency direction.

A manual replacement records its source evidence, reason and independent approval. Historical-rate requirements retain the relevant transaction or layer context where the accounting method needs it. Do not combine balances with different historical bases into one amount before applying a single historical rate. The run retains the exact approved rate versions used.

Explain translation and the balancing adjustment

The translation output preserves the source trial-balance line, rule, rate and translated amount. Several source lines may map to the same group account while retaining different historical layers. Aggregate them only after their individual translations. Domestic USD balances retain a one-to-one rate and do not acquire a fabricated translation adjustment.

The required closing translation adjustment is the reviewed balancing amount for the translated closing trial balance. The period movement equals that required closing amount less the prior published closing adjustment. A repeated run for the same close replaces a candidate; it does not add the full closing adjustment again. Keep the opening, movement and closing amounts available together. Apply the required closing amount once to the reviewed CTA account in the consolidated trial balance; the opening and movement figures explain that balance and are not extra entries.

Review changes between runs

A new FX rate, mapping or ownership version makes a different calculation candidate. Compare the changed inputs and outputs before accepting it. The earlier run remains retained, and any statements prepared from it must be regenerated and reviewed against the chosen replacement. A failed job cannot leave half of an entity’s translated balances available as the current complete result.

For example, a required closing adjustment of 120 with an opening adjustment of 100 gives a movement of 20. Running that same input set again must still show a closing balance of 120. The example checks reconciliation and retry behaviour; the approved accounting workpaper determines the real adjustment and the correct statement classification.

Keep rate access and financial approval distinct

Admin can maintain the technical connection to the configured rate provider. Financial authority remains with the named reviewers. The Consolidation Analyst can inspect missing inputs and prepare a replacement rate but cannot approve their own financial exception by changing a source label. The calculation checks the expected input revision immediately before it commits its results.