Following are the calculations used to get the PTD & YTD Balances from the Trial Balance Translation report.PTD Translated Balance = (DR-CR)+ RateAdjustmentYTD Translated Balance = Begining Balance +( DR - CR) + Rate Adjustment

Website DocumentationHow does the system translate balances?As perMetalink Note1061166.6, FASB52 states that when translating a Trial Balance from one currency to another, the following conventions should be used:

How does the system translate balances?Assets and liabilities are translated by multiplying the YTD balance by the Period End Rate.YTD (translated currency) = Rate X YTD (functional currency)Whereas,revenue and Expense balances are translated using the PTD balance for each period and the corresponding Period Average rate for each period; therefore, translation must be performed for the first period of the fiscal year forward to the period for which translation is required. Rates must also exist in the Period Rates table back to the first period of the fiscal year in which the translation is being performed.PTD (translated currency) = Rate X PTD (functional currency)In the Stock and Ownership Equity accounts, historical rates are generally used.but there are certain other special cases requiring the use of Historical rates.Point that should be noted is EBS GL allows the use of an amount to be used as the translated balance for the account specified rather than calculating the amount using the Historical Rates. This feature allows the translated balance to be calculated outside of the application in lieu of setting up and maintaining the Historical Rates. Historical Rate usage is set up by specifying a range of accounts to use Historical Rate translation. This set-up overrides the above rules for using the Period End and Period Average rates.Cumulative Translation Adjustment AccountSince the Balance Sheet and the Profit and Loss accounts are being translated using different rates, the translated Trial Balance is no longer in balance. The amount required to bring the foreign Trial Balance back in balance is called the Cumulative Translation Adjustment or CTA. This account is specified in the Set of Books set-up screen. The accounts and the amounts in them are created and populated dynamically when the Translation process get completed successfully.You should note that CTA is typically a Balance Sheet account, the account type is determined when the account value is defined for the account

Oracle DocumentationTranslating BalancesYou can translate your actual and budget account balances from your functional currency to another currency. If average balance processing is enabled, you can translate both average and standard balances.Run translation after you have completed all journal activity for an accounting period. If you post additional journal entries or change your translation rates after running translation for a period, you must retranslate. Additionally, if you change the account type for an account segment value and want to retranslate your actual account balances, you may need to purge past translations, change the account type assignment, then run translation.Attention:When you first translate a balancing segment value, you establish the initial translation period. You cannot translate a period before the initial translation period for that balancing segment.If you mark the All checkbox in the Translate Balances window and attempt to translate new balancing segment values, the program will not process any new balancing segments to prevent you from accidentally establishing the wrong initial translation period. If you add one or more new balancing segments, their first translation must be performed independently. After this first translation, you can mark the All checkbox to translate balances for all balancing segment values that have established initial translation periods.Translation and the Secondary Tracking SegmentWhen secondary tracking segment support is enabled for Closing and Translation in the Set of Books window, translation will calculate translated retained earnings by summing the translated revenue and expense accounts by a combination of primary segment value and secondary tracking segment value pair. This amount is closed to the matching detailed retained earnings account. The system also calculates a historical rate for the detail retained earnings account in the case of the YTD equity method of translation.This behavior assumes you did not define a historical amount for the retained earnings account. Otherwise, translation will use the user-defined rate or amount.When a cumulative translation adjustment is required to balance the translation, the cumulative translation adjustment account will be tracked by a combination of primary balancing segment value and secondary tracking segment value pair.Note:We recommend you translate each period sequentiallyNote:Secondary tracking segment support with the Closing and Translation option enabled does not apply to an average translation.Period-to-Date vs. Year-to-Date Translation RulesGeneral Ledger uses one of two translation rules shown in the table below, depending on the account type being translated: For Asset and Liability accounts, General Ledger always uses the Year-to-Date rule. For owner's equity accounts, you can choose to use either of these two rules. If you do not choose a rule, General Ledger uses the Period-to-Date rule. For income statement accounts, you can choose to use either of these two rules. If you do not choose a rule, General Ledger uses the Period-to-Date rule.Note:If Historical Rates or Historical Amounts are used, they will override the period-average or period-end rates for all account types.Translation RulesTranslation RuleTranslation Period Amount

Period-to-Date (PTD) RuleTranslated Period Amount =Period Average Rate X PTD Functional Balance

Year-to-Date (YTD) RuleTranslated Period Amount =Period-End Rate X YTD Functional Balance - Beginning Translated Balance

Rates Used for (Equity Method) TranslationFor equity method translation SFAS #52 requires you use the translation rates in accordance with the following table:Note:Income statement items related to non-monetary items include cost of goods sold, depreciation on property, and amortization of intangible items.Rates Used for (Equity Method) TranslationGL Account TypePeriod-EndPeriod AverageHistoric

Monetary Assets, LiabilitiesX

Non-monetary Assets, LiabilitiesX

Revenue, Expense Related to Monetary ItemsX(YTD rule)X(PTD rule)

Revenue, Expense Related to Non-monetary Items*X(YTD rule)X(PTD rule)

EquityX

Rates Used for RemeasurementFor remeasurement SFAS #52 requires you use the translation rates in accordance with the following table:Rates Used for RemeasurementGL Account TypePeriod-EndPeriod AverageHistoric

Monetary Assets, LiabilitiesX

Non-monetary Assets, LiabilitiesX

Revenue, Expense Related to Monetary ItemsX(YTD rule)X(PTD rule)

Revenue, Expense Related to Non-monetary Items*X

EquityX

Attention:Historical rates or amounts override period-end and period average rates for all account types. You should not define a historical rate or amount for an account in the Historical Rates window if you want General Ledger to select the period-end or period average rate for the account according to the above tables.Translation vs. RemeasurementThe following table summarizes the major differences in General Ledger setup steps for translation and remeasurement.Note:The two steps below are the only places in the multi-currency setup flow where translation and remeasurement differ. The other steps are the same for the two translation methods and are omitted below.Translation vs. RemeasurementSetup StepsTranslationRemeasurement

1. Setup Cumulative Translation Adjustment AccountThe account type must be owners' equity. (SFAS #52, U.S.)The account type must be revenue or expense. (SFAS #52, U.S.).

2. Enter Historical Rates in Historical Rates TableDerive and enter historical rates or amounts for owners' equity accounts only. See the Account Balances table in the Mass Allocation Examples section of the Journal Entry chapter.Derive and enter historical rates for owners' equity accounts, non-monetary assets and liability accounts, and income statement accounts related to non-monetary items. See: See the Journal Entry for Rent Decrease Allocation table in the Mass Allocation Examples section of the Journal Entry chapter.

Cumulative Translation Adjustment AccountWhen you translate your actual balances into another currency, General Ledger automatically adjusts the balance of the Cumulative Translation Adjustment account to the net difference needed to balance your translated chart of accounts. If you have multiple companies or balancing entities within a set of books, General Ledger automatically adjusts the balance of the translation adjustment accounts of each company or balancing entity. If secondary tracking segment is enabled for closing translation, the Cumulative Translation Adjustment will be calculated by unique pairs of balancing segments and secondary tracking segment values. General Ledger does not make adjustments to this account when you translate budget balances.Prerequisites Define a period in your calendar that precedes the first period you want to translate. Define a period in your calendar following the period you want to translate. Enter period and historical rates for your target currency. Review the setting of the profile option GL: Owners Equity Translation Rule. If necessary, have your system administrator change the setting. See:Notes on Translating Owners' Equity Accounts. Review the setting of the profile option GL Translation: Revenue/Expense Translation Rule. The default is PTD. If necessary, have your system administrator change the setting. See:Notes on Translating Revenue/Expense Accounts. Review the setting for the Set of Books Secondary Tracking Segment for Closing and Translation option. If you are translating budgets, define your source and target budgets.To translate actual account balances to a foreign currency:1. Navigate to the Translate Balances window.General Ledger displays the Functional Currency for your set of books as the currency you are translating.2. Select Actual for the Balance Type to translate.3. (Optional) If average balance processing is enabled in your set of books, select a Usage:Standard:To translate standard balances only.Average:To translate average balances only.Both:To translate both standard and average balances.4. Mark the All checkbox to translate balances for all balancing segment values, or enter a single Balancing Segment Value for which you want to translate balances.Attention:Marking the All checkbox translates balances for all balancing segment values that have been previously translated. If you add one or more new balancing segments, their first translation must be performed independently. After this first translation, you can mark the All checkbox to translate balances for all balancing segment values.5. Enter the Target Currency to which you want to translate. You can choose any enabled currency other than your functional currency.6. Enter the Period of the balances you want to translate.Attention:The Period you enter the first time you translate actual balances will be the earliest period for which you can translate actual balances for any subsequent translations.7. Choose the Translate button to begin a concurrent process to translate account balances. General Ledger displays the request ID (ReqID).Note:Translating both standard and average balances generates two separate concurrent requests; one to translate standard balances and one to translate average balances. Both request IDs will be displayed in the Req ID field.To translate budget balances to a foreign currency:1. Navigate to the Translate Balances window.General Ledger displays the Functional Currency for your set of books.2. Choose Budget as the Balance Type to translate. If average balances are enabled for your set of books, the Usage field will display Standard and cannot be changed.3. Mark the All checkbox to translate balances for all balancing segment values, or enter a single Balancing Segment Value for which you want to translate balances.4. Enter the Target Currency to which you want to translate. You can choose any enabled currency other than your functional currency.5. Enter the Period of the balances you want to translate. You can translate budget balances for any period regardless of the period you choose to translate first.6. Enter the Source budget whose account balances you want to translate, and the Target budget for which you want to calculate translated account balances. You can translate one source budget into one or more target budgets.Attention:You should not translate more than one source budget into the same target budget for the same period and currency because each source budget translation will override the balances in your target budget.Note:You can only translate budget amounts that are entered in the functional currency.The budget year containing the period you are translating must be open in your source budget.7. Choose the Translate button to begin a concurrent process to translate account balances. General Ledger displays the request ID (ReqID).Note:Secondary Tracking with the Closing and Translation option enabled does not apply to translation of budget and average balances.