Following are the calculations used to get the PTD & YTD Balances from the Trial

Balance Translation report.

PTD Translated Balance = (DR-CR)+ RateAdjustment
YTD Translated Balance = Begining Balance +( DR - CR) + Rate Adjustment

Website Documentation
How does the system translate balances?
As per Metalink Note 1061166.6, 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 Account
Since 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 Documentation
Translating Balances
You 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 Segment

When 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 sequentially
Note: 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 Rules

General Ledger uses one of two translation rules shown in the table below,
depending on the account type being translated:
o For Asset and Liability accounts, General Ledger always uses the Yearto-Date rule.
o 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-toDate rule.
o 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 Periodto-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 Rules
Translation Rule

Translation Period Amount

Period-to-Date (PTD)
Rule

Translated Period Amount =

Period Average Rate X PTD Functional Balance

Year-to-Date (YTD)
Rule

Translated Period Amount =

Period-End Rate X YTD Functional Balance - Beginning
Translated Balance

Rates Used for (Equity Method) Translation

For 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) Translation
GL Account Type

PeriodEnd

Period
Average

Monetary Assets, Liabilities

Non-monetary Assets, Liabilities

Revenue, Expense Related to Monetary

Items

X
X
(YTD rule) (PTD rule)

Historic

Revenue, Expense Related to Non-monetary X

X
Items*
(YTD rule) (PTD rule)
Equity

Rates Used for Remeasurement

For remeasurement SFAS #52 requires you use the translation rates in accordance
with the following table:
Rates Used for Remeasurement
GL Account Type

PeriodEnd

Monetary Assets, Liabilities

Period
Average

Non-monetary Assets, Liabilities

Revenue, Expense Related to Monetary
Items

Historic

X
X
X
(YTD rule) (PTD rule)

Revenue, Expense Related to Non-monetary

Items*

Equity

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. Remeasurement

The 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. Remeasurement
Setup Steps

Translation

Remeasurement

1. Setup
Cumulative
Translation
Adjustment
Account

The account type must be The account type must be revenue or

owners' equity. (SFAS
expense. (SFAS #52, U.S.).
#52, U.S.)

2. Enter
Historical
Rates in
Historical
Rates Table

Derive 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 nonmonetary 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 Account

When 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
o Define a period in your calendar that precedes the first period you want
to translate.
o Define a period in your calendar following the period you want to
translate.
o Enter period and historical rates for your target currency.
o 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.

o 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.
o Review the setting for the Set of Books Secondary Tracking Segment
for Closing and Translation option.
o 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
(Req ID).

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
(Req ID).
Note: Secondary Tracking with the Closing and Translation
option enabled does not apply to translation of budget and
average balances.