Translation with Historical Exchange Rates

Overview

For every reporting entity and consolidation area for which a currency translation is defined (see Creating and Configuring  Reporting Entities and Creating and Configuring Consolidation Areas), a posting of type Translation with historical exchange rates is automatically created in the Journals workspace.

In the Translation with historical exchange rates posting, the translation with historical exchange rates is defined for accounts. If translation with historical exchange rates is defined for an account then the value which has been calculated originally using the current exchange rate is cleared and the value which has been calculated using the historical exchange rate is posted.

The configuration of the automatically created Translation with historical exchange rates postings can be edited in the CFO Solution Platform.

To define fixed historical exchange rates individually at the posting value level, see Historical Exchange Rate Translation.

This article contains the following sections:

Configuring the Translation with Historical Exchange Rates

To edit the configuration of a Translation with historical exchange rates posting, click on the posting, and then click Edit in the top right.

General Properties
General properties of a 'Translation with historical exchange rates' posting are displayed.
General properties of a 'Translation with historical exchange rates' posting

In the header, you can change the name of the posting.

'Historical Exchange Rates' Tab

The following options are available on the Historical exchange rates tab:

Configuration of a posting of type 'Translation with historical exchange rates' is displayed.
'Historical exchange rates' tab

In the Overview area, you configure and define the view and when the historical exchange rate will apply. 


Option

Description


Issue

Name of the conversion


Period

Period within which the conversion is to be used


Adjustment level

Adjustment level in which the historical exchange rate will apply


Transaction currency

Transaction currency in which the posting is to be made


In the Details area, you must specify the accounts to be translated with the historical exchange rate specified in the Overview area. The following options are available:


Option

Description


Account

Account or item for creating the posting


Cost center/ partner/ transaction type

Allows selection of a cost center/partner/transaction type from the respective drop-down lists


Transaction currency

Amount to be translated in the transaction currency

Select C for credit for equity and liability accounts, and D for debit for asset accounts.

When the amount to be translated is entered in the Transaction currency column, the system automatically calculates the value in the currency column using the historical exchange rate saved in the Overview area.