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Administrator Guide
Last Updated: 2024-09-20
Create Translation Adjustment Journals in AP&C

Create Translation Adjustment Journals in AP&C

You can create translation adjustment journals in Adaptive Planning and Consolidation (AP&C) to eliminate differences in Equity accounts between the ledger (Base) currency and the translation (Reporting) currency for a company. The differences can occur due to currency rate fluctuations when posting journals on different dates.
  1. Access the
    Create Translation Adjustment
     task.
  2. As you complete the task, consider:
    Option Description
    Accounting Date
    Workday retrieves beginning balances and journal transactions entered as of the accounting date you select.
    Translation Currency
    Select the currency into which you want to generate an adjustment to the translated balances.
    Ledger Accounts
    Select accounts requiring translation adjustments. The prompt only displays accounts translated with the
    Historic Equity
     rate type.
    Leave this field blank to retrieve all accounts translated with the
    Historic Equity
    rate type.
    Workday only displays journal lines on the grid for both beginning balance journals and journal entries that match for each combination of ledger account and worktags.
    Create Manual Translation Adjustment
    Select to create 1 or more translation adjustments using any combination of allowed worktags for:
    • Accounts using historic currency translation rule sets.
    • Balance sheet accounts with or without beginning balance journals.
    • Income statement accounts with beginning balance journals.
    • Income statement accounts without beginning balance journals when you opt into the redesigned retained earnings reporting feature. See: 2021R1 What's New Post: Redesigned Retained Earnings Reporting.
      (Optional) Access the
      Opt-In to Roll Forward with Balance Sheet Ledger Account
       task to confirm whether you opted in or complete the opt-in process.
  3. Review the journal lines for the beginning balance and journal entries, and then enter an offsetting amount to adjust the difference in each account.
    Example: You have a beginning balance for an Equity account. During the year, you post various offsetting journals with different currency rates into that account. At the end of the year, you find that though the ledger balance in the Equity account is zero the translated amount has a credit balance of 300. The difference is due to the different currency rates of the posted journals.
    To adjust the translated balance, you enter a translation adjustment of 300 in the
    Translated Debit Adjustment
     column of the Equity account.
Workday displays:
  • The translated balance in the Equity account as zero.
  • Amount of 300 as translation gain or lost in the Balance Sheet.
Run a
Trial Balance - Composite
 report in the translated currency to confirm that the ending balance in each account you corrected is zero. You can drill down on the zero balance to review the journal activity.