Translation Rules
Translation is not a difficult concept. You have revenue you earn in multiple currencies, but you need to report it in one of the parents. You have transactions that need to be translated into the functional currency of the entity. That process is called “revaluation.” Since HFM does not have transactional detail, revaluation must stay in the ledger. Once in the functional currency, the data can move into HFM. Your application should have functional currency by legal entity for many reasons. Once functional currency is in HFM, the translation process can progress.
One of the benefits of HFM is that it was built to be GAAP neutral. You can calculate the translation as you need. However, for the benefit of this appendix, let’s ...
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