The transaction for currency translation is integrated into the management of the consolidation status.

Depending on the consolidation status, two types of currency translation are distinguished:

• provisional translation

• actual translation

A provisional translation is needed in connection with the creation of lists of intercompany balances. Lists of intercompany balances are created to find differences on the report of relationships within the group and, when appropriate, to correct these before the actual consolidation steps are performed. The translation of the entered data is a requirement for the list of intercompany balances. The adjustment of the differences results in a new data entry (input). This is why provisional translation occurs during status ‘Entry’ and inevitably leads to the posting of the consolidated values in the totals table. Please note that the database is changed even if error messages occur.

The actual translation occurs during consolidation status ‘Translation.’ Data entry must be blocked. Individual FS data must have been entered and any standardizing entries to the corporate valuation already made. A later execution of further standardizing entries or even adjustments to the individual financial statements require another currency translation and even another validation check. If error messages occur, only a provisional translation is performed. In this case the translation cannot be blocked.

The translation can be performed for an entire subgroup as well as for an individual company. If the translation has already been run for individual companies within a subgroup, you can still start the translation for the entire subgroup. The database is not updated for companies whose data has already been translated. A corresponding message appears in the audit trail for the translation.