Consildation Exchange rates

Navrookie

Hi,

Can someone say me what is the difference
a) Selecting Translation method in GL Consolidation tab &
b)Selectin Exchange rate method in Business units During Consolidation
](*,)

kiyac

The "Translation method" in GL Consolidation tab controls what "exchange rate(s)" will be used during consolidation. The "exchange rate(s)" is set in parent company business units card "Exchange Rate" button during Consolidation.

Refer to the pic for the mapping details.



Here is the explaination extracted from Help.

Average Rate (Manual) – the average rate for the period to be consolidated. You calculate the average either as an arithmetic average or as a best estimate and enter it for each business unit.

Closing Rate – the rate which prevails in the foreign exchange market at the date for which the balance sheet or income statement is being prepared. You enter the rate for each business unit.

Historical Rate – the rate of exchange for the foreign currency which prevailed when the transaction took place.

Composite Rate – the current period amounts are translated at the average rate and added to the previously recorded balance in the consolidated company. This method is typically used for retained earnings accounts because they include amounts from different periods and are thus a composite of amounts translated with different exchange rates.

Equity Rate - similar to Composite. The posting of the differences will be to separate G/L Accounts.