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Welcome to this step-by-step tutorial on how to
configure translation settings and create translations rules
in Oracle Financial Consolidation and Close Cloud.
You can configure the default translation settings for all accounts.
You can select average or ending for the rate account, and Periodic or Year to Date
for the translation method.
With The Periodic translation method, the value for the Periodic
member of the View dimension is the current period movement
translated at the current period rate.
The value for year to date member is the sum
of the translated periodic values from the first period of the year through the current period.
With the Year to Date method, the value for the Year to Date member of
the View dimension is the total year to date movement translated at the
current period rate. The value for the Periodic member is the current
period Year to Date translated value minus the prior period Year to Date translated value.
You can set different defaults for Balance accounts and Flow accounts.
The out of the box defaults for Balance accounts are Ending for rate account and Periodic for translation method.
The defaults for Flow accounts are Average for rate account and Periodic for translation method.
To modify the default translation settings for all accounts, from the Application cluster,
open the Consolidation card,
click Translated,
and then Translation Overrides.
Click Manage Defaults.
I’ll change the default rate for Balance accounts to Average Rate.
Your changes to the translation setting take effect immediately; you do not need to refresh the database.
Note that the default translation settings apply only to the No Movement member,
the Opening Balance adjustment member, and the base level members of
the Movements Subtotal hierarchy.
The default translation settings do not apply to the Closing Balance member, the Opening
Balance member, or the members of the Total Effect from Foreign Exchange Hierarchy.
You cannot modify the translation calculations for those members.
You can create translation rules to override the default translation settings
for a specific member or range of members,
for example, a specific account or scenario.
I’ll create a rule to translate the fixed asset accounts for the Canadian Operations
entity using the exchange rate from the last period of the prior year.
I’ll use Year to Date for the Translation Method and Ending for the Rate Account.
Click Advanced to select the Scenario, Year, and Period from which to retrieve the exchange rates.
The default is the current scenario, year, and period.
You can select member names or use a keyword.
I’ll select the Prior Year keyword for Year and
the Last Period keyword for Period.
Next, I’ll define the scope for the rule. I want to apply this rule to all level 0
members of the Fixed Assets parent account,
for the Actual scenario and the Canada Operations entity.
I’ll select all years, and then add an exclusion for the first year in the application, 2016.
The rule scope can include members from any dimension except Consolidation and View.
The selected members must be base level members.
If you do not select members for a dimension, all valid members for the dimension are
included in the scope.
You can optionally click Redirect Members to post the translated values to a different member.
You can redirect values for the Account, Movement, Multi-GAAP, and Intercompany dimensions.
I don’t need to redirect values in this rule, so I’ll click Remove Redirection.
You can update the same account using multiple rules.
Use the processing options to determine how the rule results accumulate in the account.
The results from a rule can replace the value from the previous rule, be added to
it, or be subtracted from it.
This enables you to accumulate values and to perform calculations.
To understand processing options, let’s look more closely at translation rule execution.
Accounts are always first translated using the default translation settings,
even if a translation rule exist for an account. If translation rules exist for an account
and there is no redirection, the value from the first rule overwrites the value that
resulted from the default translation setting, regardless of the processing option selected.
If there are additional translation rules for the same account,
the account value is updated using the processing option selected for the rule.
For example, to define rules to calculate how much of the difference
between current year sales and prior year sales was due to the change in exchange rates,
I could create a rule to translate Sales at the current period rate with the Add option
and a second rule to translated Sales at the prior year rate using the Subtract option,
and redirect the output of both rules to the Sales Difference Due To Translation account.
I’m finished defining this rule, so I’ll click Save and Close.
To activate the rule, I must deploy it.
Rules that are not deployed display a circle.
Currently deployed rules that have been modified since the last deployment show a triangle.
If you modify a rule, you must redeploy in order for the changes to be applied.
You can filter the list to show deployed rules only.
In the Deploy Translation Rules dialog box, the currently deployed rules
display a check mark.
When you deploy, the selected rules replace all currently deployed rules,
so if you clear the checkmark for a currently deployed rule, it becomes undeployed.
You do not need to refresh the database after deploying rules.
Note that, like the default translation settings, translation rules affect only the No Movement
member, the Opening Balance adjustment member, and the members in the Movements Subtotal hierarchy.
Now I’ll run a consolidation for Canadian Operations to verify my translation rule results.
My Movement for the Land account for January 2018 is 4000.
I’ll enter 1000 for February movement.
The December 2017 average rate for the Canadian Dollar to US is 2.5 and the closing
rate is 3. The February 2018 rates are 4.5 for average and 5 for ending.
Now I’ll consolidate.
When I consolidate, the Fixed Assets Reval rule translates the YTD movement of 5000
using the December 2017 ending rate of 3 rather than the current period average rate of 4.5.
The periodic value is 3000, which is the difference between the current period
year to date and the prior period year to date values.
In this tutorial, you learned how to configure translation settings
and create translation rules
in Oracle Financial Consolidation and Close Cloud.
To learn more, visit cloud.oracle.com.