Oracle GL Translation Process
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- เผยแพร่เมื่อ 17 ก.ย. 2024
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One of the best channel to get the knowledge on the Oracle financial topics which are hardly covered by others in their 1 hour long videos. Kudos to you. Your articulation is to the point and crisp. Almost every sentence you say have a great value. Thanks
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Awesome Sir..U are doing great job..
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Very informative..thanks a lot sir!
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Nice Video ...Good Explanation ...Thank you
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nice video
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Good
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Thanks you for sharing the videos. Could you please do a video on Multi-Currency reporting using another ledger linking with FA?
Hi Aravind,
As you say there will no accounting entry for the currency translation process then how the CTA account got hit for the Balancing figure.
For Example: If the Balance in Revenue account is 5000 $ and we run the Currency Translation with EUR using 0.80 as exchange rate, then the Revenue Account will be 4000 Euro, So how is the Balancing figure emerges in Trial Balance.
One more Query: Do we need to create a Separate ledger for currency translation or we can translate the currency in our Primary ledger (For Subsidiary company ledger)
Hi Danish,
Explanation regarding CTA Account balance:-
Lets say you ran Translation for Jul-18 period (for the first time). Assume your functional currency is USD and Translated currency is EUR. Assume Period Average rate is 1 EUR = 0.90 USD and Period End rate is 1 EUR=0.95 USD
Lets say your TB in USD is as below:-
Revenue A/c 1000 Cr
Expense A/c 500 Dr
Assets A/c 3500 Dr
Liabilities A/c 3000 Cr
After translation, your translated TB (Which is in EUR) looks like:-
Revenue A/c 900 Cr
Expense A/c 450 Dr
Assets A/c 3325 Dr
Liaibilities A/c 2850 Cr
CTA A/c 25 Cr (Balancing Figure)
Let us assume that there are no transactions for Aug-18 Period and then you run Translation for Aug-18. Assume Period Average rate is 1 EUR=.92 USD and Period End rate is 1 EUR=0.95 USD
After translation, your translated TB (Which is in EUR) looks like:-
Revenue A/c 920 Cr
Expense A/c 460 Dr
Assets A/c 3325 Dr
Liaibilities A/c 2850 Cr
CTA A/c 15 Cr (Balancing Figure)
Regarding your second question:- You need not create separate ledger for translation. Just run translation in primary ledger and system automatically creates a reporting/translated ledger in the background for the currency for which you run translation process
@@OracleEbizandFusionVideos
Can we run translation multiple times with different currencies? Or just one currency..
@@srujanaoguri1657 Yes, you can run translation multiple times and for different currencies. For each currency, system internally creates one translated ledger
Great video Arvind. Can you do a video showing the differences between Translation and MRC?
Hi Ghosh, we do not have a concept of MRC in R12. We have concept of Reporting currency. Are you referring to difference between Translation and Reporting currency ?
Yes, that would be helpful
Also could you please explain about the different rates like period average and historical rates?
In general, Period Average rates are used to translate P&L Accounts and Historical rates are used to translate Owner's Equity accounts
Can you tell me the difference in Trial Balance for PTD & YTD?
Why Translation can't be run in 1st period of the calendar. If so how balances transferred from Primary to Reporting Ledger in Jan.
Enter the closing balances in December which will become opening balance for Jan and you can start running translation process from Jan period
Very helpful. Do you share the PPTs also that you present ?
Ping me your email id
Hi sir videos are very informative..
Plz suggest any source to learn Oracle R12 finance as a fresher..
Hi, Please ping me on my facebook page:-
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Hi Arvind,
Can we create ledger set and run translation for multiple ledgers at a time in one shot if reporting currency is different for all the ledgers??
If reporting currency is same, then its possible to run Translation in shot for all ledgers in a ledger set... If its different, then its not possible.... When you are running Translation program, Target currency is a mandatory field where you can specify only one currency
Good one
Thanks
Please tell me in detailed before trial balance and after we create a translation then how trial balance will be changed
Hi Srikar,
There is no journal entry created after running Translation. Different accounts are translated using different exchange rates and any balancing figure in TB goes to CTA account. If you run TB (before and after translation), you can see that change in CTA balance
What about historical rate
Yes, in the video, i had already explained that if there are historical rates, then system will use those rates and also mentioned that for this video, i am assuming that there are no historical rates in this test environment.
Sir who provide period end and period average rate.. In my scenario m configuring Japanese business in India now they need to configure translation process for INR to YEN.. Now from where we get period average and period end rate?
Ur guidance required..
It needs to be provided by business users.
Hi Anil,
Can we have period avg rate and period end rate are same? What happens when they are same?
Thank you
If Period Average rate and Period end rate are same, then the translation process uses the same rate for translating both B/S and P&L Accounts
@@OracleEbizandFusionVideos : Thanks a lot for the response. "Period Average rate= Average of the Daily rates defined for that period.
Period End rate= End of the day period rate of the Daily rates defined for that period.
Example:
USD to INR
Date Rate
01-May-20 60
02-May-20 55
03-May-20 62
31-May-20 61
Period end Rate= 31-May-20 = 61
Period Average Rate= Average of the Rates= 59"
Is the above understanding of the period avg rate and period end rate wrong?
Please remember, period average rates are not derived by system... You need to manually enter them in the system and then translation process uses the same
Sir what should be the nature of CTA account as it should be owner equity or expense account?
It should be set as Owner Equity and not as an expense account
Is there any journal entry created of commulative translation adjustment balance..As I have run the translation and in trial balance of Foreign currency we see the balance amount of ending balance credited in CTA account..
There is no journal entry created after running Translation. Different accounts are translated using different exchange rates and any balancing figure in TB goes to CTA account.
Yaa if we see translation trial balance the unbalanced amount can be seen in CTA account so it mean we cant see balance in CTA a/c if we go to find in account inquiry..
What balances hit the CTA account.
What balancing differences go to the CTA account
Different accounts are translated using different exchange rates and any balancing figure in TB goes to CTA account. If you run TB (before and after translation), you can see that change in CTA balance
good
Thanks Raghu