In this tutorial, we’ll show you how to configure Foreign Currency Translation Rates in Oracle Tax Reporting Cloud. You’ll learn how to to select the application currency, enter average and ending rates for each period, calculate and view triangulated rates, and perform period-end rollovers. Let’s start with the application reporting currency. You select the application reporting currency during application creation. You cannot change the application currency after the application is created. The application currency is used for triangulation of exchange rates. Triangulation can reduce the number of rates you need to load or enter. For example, if US Dollars is the main application currency, and I enter exchange rates for Canadian Dollars to US Dollars and Euros to US Dollars, the system uses triangulation to calculate rates for translating Canadian Dollars to Euros and Euros to Canadian Dollars, based on their US Dollar exchange rates. Now let’s look at how you enter exchange rates. You can load them from a file or using Data Management, or you can enter them manually. You load exchange rates to the Rates cube. For more information on loading data, see the Help Center video titled Overview: Loading Data in Tax Reporting Cloud. Let look at viewing and entering rates using forms. Two forms are provide for manually entering exchange rates, FX Rates Single Period and FX Rates Full Year. I’ll open the FX Rates Single Period form. The currency to translate from displays in the rows, and the currency to translate to displays in the columns. In the FX Rates Full Year form, the From currencies display in the rows, and you select a single To currency in the POV. In the POV, I’ll select the year, period, and scenario. In the Entity dimension, you can enter rates to the Global Assumption member if you want them to apply to all entities, or you can select an individual entity. The currently selected entity is Vision Canada, so my rates will apply only to this entity. I’ll change the POV to Global Assumptions so that the rates I enter apply to all entities. To select the Global Assumptions member, click Entity in the member selector to display the top-level members. During translation, if an exchange rate exists at the entity level, the system uses the entity rate. If no rate exists at the entity level, the Global Assumptions rate is used. You can enter an average rate and an ending rate for each currency. Average rates apply to accounts that are set to Flow for the Time Balance member property, and ending rate to accounts set to Balance for Time Balance. Upon consolidation, the value for Opening Rate is pulled forward automatically from period 12 of the prior year, and is used to translate opening balances. I’ll enter rates for translating Canadian Dollars to US Dollars. The Entity Currency values for entities that use Canadian dollars will be multiplied by this rate to calculate the Parent Currency values. I can enter a separate rate to translate from US dollars to Canadian dollars. Now I’ll enter rates to translate from Euros to US Dollars. Because I also entered rates to translate from Canadian Dollars to US dollars, the system will calculate triangulated exchanges rates for translating Canadian Dollars to Euros and Euros to Canadian Dollars. During translation, the system first checks whether a direct exchange rate exists either at the entity level or as a Global Assumption. If there is no direct rate, it uses the triangulated rate. To calculate triangulated rates, you need to run the Compute Rates rule. When you click Save after entering rates, you are automatically prompted to run the rule. Note that the compute rates rule runs automatically after you load exchange rates from a file or using Data Management. If you want to view the triangulated rates, you can open the FX Rates Review form. You select the To currency in the POV and the From currencies display in the rows. It displays the direct rate if one exists, otherwise it displays the triangulated rate. Here I can see the triangulated rate that was calculated for translating Canadian Dollars to Euros. From the Configuration page, you can perform a period-end rollover of exchange rates. Specify the period to which you want to rollover the rates. When you click Run, the prior period rates are copied to the specified period. In this tutorial, we showed you how to configure foreign currency translation rates in Oracle Tax Reporting Cloud. To learn more, visit cloud.oracle.com.