Translation is used to transfer accounting transactions from one company to another to transform transactions for business or international reporting standards. Usually, during translation, ledger accounts are replaced according to a set rule. It is also sometimes necessary to recalculate data from one currency or to change financial dimensions. For example, an accounting calculation might be performed in rubles, while a business calculation is performed in dollars.
Translation can be performed from one company to several others. For example, the company that is carrying out the accounting calculation might translate data to one company for international reporting, and another company for business reporting.
Microsoft Dynamics AX 5.0 only performs translations for ledger transactions.
The following types of voucher translations are available:
One to one – Used to translate transactions from a source company to a target company when the same currency is used, if the national currency and the reporting currency are the same.
Historical – Voucher translation is performed according to the exchange rate on the date that the voucher was executed.
Weighted – A weighted average is used for the exchange rate for the period.
Current – Translation is performed for the exchange rate on the date that it is performed.
Special – Translation is performed for the exchange rate that was specified in the transaction and is not linked to the exchange rate on the voucher date or the exchange rate on the translation date.
User specified – Translation is performed according to the exchange rate that is specified by the user.
The company develops translation rules, based on their accounting policies, that stipulate from which ledger account in the Russian account chart to which ledger account in the IFRS (International Financial Reporting Standards) or business account chart, and at which exchange rate or along which dimensions, vouchers are transferred from the company holding the Russian account to the company holding the international or business account.
When the translation is done, transactions are transferred from the source company, which is the database for Russian accounting, to the target company, which is an IFRS company or business account.