In this session we are going to discuss about translation and reporting currency transactions. Translation under reporting currency transactions. In last reality we had a discussion of budgets budget means what is a budget budget is a projection of revenues will define the budget in organization okay and assign the budget according to the period okay and what is a translation translation means currency translation we are going to do the translation of currency from one currency to another currency. So, till now we have created different type of transactions We have created different types of transactions in other functional currency right not functional currency okay. Always the company maintains only one functional currency and they can have multiple reporting currencies automates the company maintains only one functional currency, but they can have multiple reporting currencies. Reporting currency means other than your functional currency other than your functional currency, what other currency we use so that all currencies come central That reporting currency.

Okay, apart from your functional currency what other currency we use so that all currencies comes under the reporting currency. By default, already, they declared our functional currency as I enter. By default, already we declared our functional currency as higher and also defined a different type of final currency transaction function. First sometimes if you want to do the transactions in any one currency, for example, suppose you have a client all over the globe. Suppose you have a client in us or you have a client in Australia or you have a client in Emirates. If you want to work with that clients and get them, we have to go for currency conversions right right because our currency is Ayana and our current client currencies, maybe EUR USD or maybe Australia dollar or embedded currencies, whatever it may be, both currencies are different to our currency and your client currents.

If you want to do the transactions with that client, compass nav, how to go for currency, conversions, currency conversions, if you want to do the currency conversions, compass entered we require that conversion rates the conversion rate is not a mandate. It's not a pixel, fluctuating dial. Whenever we want to do the conversion will require up to date conversion rate. Really quick up to rate conversion rate. As a financial functional consultant, we are going to have flow The conversion rate that is the rates are called the daily rates daily we are going to load into writes into the GL okay. So, daily means that conversion is not a fixed fluctuating daily management we want to do the conversion will liquid up to date conversion right firstly enter the diluted after that go to do the conversion of currency from your functional currency into reporting currency reporting currency into your functional currency.

The conversion rate is not a fix is fluctuating daily, whenever we want to do the conversion will require up to date conversion rate. So, when the translation when the translation requests means, if you want to go for the consolidation process If you want to go further consolidation process will require this transformation considerations. So tailor the company using only one primary ledger right. Sometimes the company maintains both more than one primary Ledger's okay. So, we have to go for that translation if the company maintains more than primary Ledger's composite they have to go for the translation of the currency for foreign currency into change the currency change current parent currency into child becomes parent to consumers our primary currency that is nothing but I have not already declared child consumers secondary ledger currency. Suppose, for example, our company is in Nereus now of A minus nine India but we have a started one more branch in US If you want to work with us plant and facility need to define one more primary ledger and one more legally why because the companies in us we have to pay the tax to the US government right, how to pay the taxes according to the legal entity level the liquid legal entity based on the US country and then create a secondary primary ledger for us operations.

Near us the main and uses this sub secondary, always the secondary company transactions are consolidated and the company transaction So, if you want to go further consolidation, before the consolidation, first we have to go for that translation before the consolidation Firstly, how to go for that translation of the currency prep change in DuPage. Thanks Yes I am okay, I'll miss the translation comes under the consolidation process and revaluation also we are going to revaluation the currency okay. So these two are comes into the consolidation process what is a consolidation means maintaining the company and maintain the two primary locus the company maintain the two primary ledger the currency is different for the two Ledger's Okay, let me see that the setup Okay. Now what is the multiple currency transactions only, we define transaction in our functional currency that is INR currency that is INR is our functional currency.

Already we define a different type of the journal entries. But we have a client in us now I want to do the transfer Did that plant awaken domains? So when I want to do the transaction with the client combusted anyway USD currency right, but our functional currency Zion okay. So, now we are going to define that reporting this is the reporting currency of our company right because already our company declares INR currency is the primary currency a partial primary currency, any other currency we use, so, that all comes under their reporting currency Okay, so one company maintenance minimum one functional currency and maximum more than when reporting balances Okay, so now first if you want to maintain the reporting currency first we need to define your reporting currency at primary ledger Okay, so first brought to define the reporting currency at primary ledger level After going through different transactions in reporting currency After defining the transactions then the transaction details are converted into another currency okay now let's go to define the setup.

The first setup is go to define the reporting currency go to define the reporting currency at the primary ledger level. navigation is setup financials account before that first we have to define the conversion rates right. Why because the reporting currencies they're different try another currency right. So if you want to work on in any other currency compulsory they need a conversion rate and conversion types. So, basically the conversion types are given by the arcade there is three types of conversion types. The first one is that Corporation Second one is this part third one is a user.

The first one is a corporate corporate means that it is given by the National Stock Exchange the conversion rate is given by the National Stock Exchange people okay. So, they provide the rate according to that, we are going to do the conversion of currency. And in most situations we have to use the corporate and second conversion spot the spot rate is given by the media companies. Okay, so that spot rate and corporate maybe sometimes both are the different culture. And finally, user means users are going to create their own read type also. Okay, so now I want to create my one where type has to go to define a red flag.

How to define the red type means the navigation is sector currencies right, the four types setup, currencies reps. I'm going to send it section complete one report of tenancy after that, now that that is created next step is going to define the conversion rate to designate suppose I want to do the conversion today we're going to define that pedestrian. I'm actually set up currencies, rights by sector, tolerances, rapes by value added. What do you Got some currency and to currency function currency that is to test rate and what is a Thai politic? Go to select our type and what is the rate today dollar rate from big to Ayana 65 by default it is converted into INR into us okay. So compulsory this rate is mandatory.

Before going to do the conversion, you must change your upload that deliberates we can have the conversion type. So in this case possibly for that already I created a conversion type and assign the conversion type to this right. So whenever we do the transactions in reality today, it will take by default take the bait as 65 Okay, After that go to assign that reporting currency to primary ledger navigation in setup financial accounting Setup Manager now go to ledger select our ledger and click on Update accounting options since you are a legal entity and this is your primary ledger and second accounting option is reporting so can the company option is the reporting guidance go to select the reporting currency and go to click on Update button. Okay, now it displays a ledger details ledger main, your chart of account your currency and your cabin Okay, so now what to click on Add reporting currency.

So, for one ledger maybe you can add multiple reporting currencies also according to our requirement minimum one is mandatory functional currencies one is mandatory maybe we can have more than reporting currency sources and what is the current currency conversion level? Here there is a two levels of depth general and balance our list we have to do the currency at the time of doing the journal entry. And what is the reporting currency make this go to the reporting currency, purely user defined started reporting and what is the name of your reporting currency I'm shortening the first ever series period and it is asking the default of conversion rate can already be created the rate type right? assign our one rate, test underscore underscore time. After that go to save the difference. Yes.

Okay. Now we'll get into details like this is your reporting currency USD reporting currency name conversion levels gender and status is completed. Okay, go to click on complete. Okay now, the reporting currency is created successfully will detect complete message The last update is to desert okay now we add a reporting currency to our primary ledger. So like this if you want add more than you can add the more than one okay close it Okay. So now if you want to know the transactions in the report using the reporting currency, some percentage periods are entered in open and reporting currency also.

Okay how the how the periods are open in reporting currency. If you want the weapon first we need to assign the reporting currency to primary ledger right or we can assign with the help of the system admin with help of the profile option if you want to set up the profile option to log into the system at once which responsibility select the system or login to system admin responsibility You want to the navigation system reporting, reporting currency from the list of values. Okay. Again go to love individual. Now opening the accounting periods into the second reporting Setup open and close. Now you will get your reporting ledger fine.

My first period in January did it come first and open the PDFs on January to March. Why? Because the current period is on March on the right I didn't have fun period. Select the target together step robbery. Yes. Okay.

Much. Let us see that that was really pasta Completing go to find now the three periods are over after them so to define a transaction in our primary ledger if you want to define the transaction we require the primary ledger right? But now we're in the reporting network. Okay. So compulsory we need to assign our primary ledger our segments again go to System ID our primary ledger system Select the responsibility account for that login logout from system admin and log into JIRA. Okay, now go to creative and transaction You now go to create one journal entry here the navigation is gone or is it done Anthony reporting here is much prettier.

Effect to date is 31st March and this is your currency and debut strategic alliance via command line select the core combination company Department of Commerce contact selecting expense account So how much you are going to demo right now I'm entering another currency that because this is our primary ledger, the primary ledger functional currencies I am going to enter the amount I mean nine out of 10,000 rupees but the second line is a cash account because that we selected expenses can be expensive second data to cash account when you take ordinary cash advance select the second debit amount is also 15,000. Okay, so now we have two Ledger's right one is the primary ledger second one is the reporting ledger right. But in the reporting ledger, very small charter, only we have a currency or the reporting local currencies a USD one that is our reporting the currency money Our primary ledger currencies are not alright.

So, now we are going to define your transaction our functional currency as I enter now, I created a transaction I entered currency 15,000 I entered the amount as 15,000 after the transaction is completed that 15,000 is converted into the US dollar according to the conversion rate or the deadhead conversion rate right today's rate is 65 of this okay from yazzie to Ayana, today's rate is a 65 analysis converted into iron ore into USD also then, based on the conversion determining the currency is converted into USD. So, after conversion is completed then the details are saved into the reporting currency.