During first consolidation, balance sheet translation differences that affect net income are not posted to a balance sheet item but instead to an income statement item, thus to a revenue or expense item. Consequently, an automatic net income effect is also initiated between retained earnings on the balance sheet and the net income on the income statement, and therefore, the balance sheet total is cleared again.

Subsequent consolidation is basically similar. Here, however, only the change in the translation difference on the balance sheet as compared to the cumulative value of the previous period is posted to the income statement. If the subsequent consolidation is the first one of the new fiscal year, the old translation difference is taken into account for the net income/loss carry-forward item (selected item BIL).
The selected item WPE is used for controlling the changes in the balance sheet translation difference. The FS item assigned here should be defined as a statistical FS item outside of the balance sheet and the income statement. The system posts the absolute value of the translation difference to this item. In the following period, you can determine the share of the current period by comparing the absolute value of the translation difference with the value of the selected item of the previous period.

The income statement translation difference is assigned to a revenue or expense item on income statement as in the case not affecting net income.

When repeating currency translation, the data is translated and posted again; the system ensures that no double entry is made.