Translation in Oracle Fusion

Translation in Oracle Fusion

Hi Friends , We are going to discuss the Translation in Oracle Fusion. Transitional is the concept more related to reporting part. If we want to generate the oracle reporting from fusion application in other currency (not in Ledger Currency) then we can use the  Translation feature in Oracle Fusion.The Translate General Ledger Account Balances is a process by which you restate an entire ledger or a set of balances for a company from the ledger currency to a reporting currency. Oracle Financials Cloud General Ledger supports translation that restates your standard actual ledger currency balances to a target currency using the appropriate currency conversion rates. Here below is the more detail about Translation in Oracle Fusion.

The Translate General Ledger Account Balances process is typically run once you have completed all journal activities for an accounting period. You run this process at the end of an accounting period, after all transactions have been processed and reconciled. You translate the actual ledger currency balances of your ledger to another reporting currency to help you consolidate the financial results. Please find below detail steps to configure Translation in Oracle Fusion.

Steps to Configure the Translation in Oracle Fusion

Step 1:- 

In Specify Ledger Options , We need to define these below details for Transalation

Provide the Default Period End Rate Type – This is the currency exchange rate which will be used for translating the Balance sheet accounts – viz. Assets, Liabilities etc.
Provide the Default Period Average rate type – This is the currency exchange rate which will be used for translating the P&L accounts – viz. Expenses, Income etc.
Cumulative Translation Adjustment Account – This is the accounting code combination provided for CTA account. Any differences arising out of translation for Balance sheet accounts and P&L accounts owing to a difference in average rate and period end rates will be posted to this account.

Translation in Oracle Fusion

Step 2:- 

Translation in Oracle Fusion

Step 3:- 

Set the Revenue and Expenses Translation Rule as Period to Date: PTD (the default setting) or 

Year to Date: YTD

The Year to Date rule has been provided to satisfy some specialized customer needs.

The period-end and the period-average rates types you assigned to the source ledger on the Specify Ledger Options page are defaulted to the associated balance-level reporting currencies. However, you can update the default period-end and the period-average rate type assignments at the balance-level reporting currency level, before you run the translation process for the first time. 

The daily rate defined for the last day of the period is used as the translation rate for that accounting period. If the rate for the last day of the period does not exist, the translation process searches back within the period until a rate is found. If no rate exists for the period, the translation process ends in an error. 

Translation in Oracle Fusion

Translation in Oracle Fusion

Step 4:- 

You must maintain rates for the rate types specified under the Currency Translation Options on the balance-level reporting currency setup page. You may also maintain historical rates, as applicable, to the selected accounts.

Navigate to Currency Rates Manager page, Daily Rates by following the path: General Accounting > Period Close> Multicurrency>Manage Currency Rates> Daily Rates (tab)> Create in Spreadsheet

Translation in Oracle Fusion

Step 5:- 

Translation in Oracle Fusion

Step 6:- 

Similarly, navigate to the Historical Rates tabbed region and click Create in Spreadsheet, to define historical rates or amounts for a combination of an account and a target currency. The historical rates that you define can be rolled forward or otherwise reset, based on the Roll Forward flag = Yes or No that you specify. Note also that the historical amount that you define here will be, by default, considered as a credit amount.

Once the Translation Options are defined, define and run Translation.

You can now translate the general ledger account balances to a target currency, by navigating to Period Close> Multi Currency> Translate Balances

Translation in Oracle Fusion

Step 7:- 

When you submit the translation process, you specify the values for the following parameters: 

Data Access Set: Select the applicable data access set. 

Ledger or Ledger Set: Select the source ledger or ledger set. 

Target Currency: Select the reporting currency to translate to. 

Accounting Period: Select the accounting period to run translation. The first accounting period translated becomes the initial translation period for the specified balancing segment values. The next time the process is submitted, the translation is processed from the initial translation period up to the accounting period parameter that you specify. 

Caution: If you're submitting the translation process for the first time, select the accounting Period carefully. After the initial translation period is set, you can't run the translation process for any earlier period. 

Balancing Segment Value: Leave the parameter blank to translate all the balancing segment values, or select a specific balancing segment value.  

Translation in Oracle Fusion

Step 8:-  Verify the Translated Currency Amount :

Once you have run translation successfully, you can review the result either by viewing the Trial balance report or by using the balance inquiry pages. Submit the Trial Balance report by navigating to the Scheduled Processes page. To get a translated trial balance specify the target reporting currency, assigned to the balance-level reporting currency in the Ledger Currency field, on the report submission page.

Navigation : Tools è Schedule Processes

Click on the Button Schedule New Process

Translation in Oracle Fusion

Step 9:- 

To get a translated trial balance specify the target reporting currency, assigned to the balance-level reporting currency in the Ledger Currency field, on the report submission page.

When performing a balance inquiry, you must choose Total as the currency type to view the total translated balances. If you instead choose Entered as the currency type in the above inquiry, the balances will be retrieved from the source ledger that was used to enter the journals.

Translation in Oracle Fusion