Consolidation Translation Method Setup of Intercompany Solution

Consolidation Translation Method Setup of Intercompany Solution

When consolidating between multiple currencies, you must define the Consolidation Translation Method (exchange rate translation method) for each G/L account in the chart of accounts. 

Note

    1. This setup must be performed in all branch companies
    2. This setup is used by the Consolidation feature. 

Chart of Accounts window

Field

Description

Consolidation Translation Method

The value in this field is used for consolidation reporting. If the local currency of the company is different than the consolidation currency the system uses from the following three translation methods for exchange rates, while translating the account balances:

    1. Historical Rate – The system uses the exchange rate defined for the date of the journal entry. This is set by default in chart of accounts.
    2. Closing Rate – The exchange rate defined for the closing date of the consolidation period. For example, if consolidating between Jan 1st and Dec 31st the closing rate will be the exchange rate for Dec 31st.
    3. Average Rate – A user-defined exchange rate set in the Average Rates window.


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