ERPstuff - Oracle EBS Community

Hi,

I have a small query? What is the Diff b/w Revaluation, Translation & Consolidation? Are they independent /dependent in some way or the other? If someone could explain this with the help of an example or two, it would be great.

Thanks in advance.

Regards

Karan

Hi,
Revaluation:
Basically revaluation is required , when we done any foreign currency transactions. Before month end close we have to run revaluation process to track exchange rate flatuations. after running revaluation we will prepare financial statements/FSG reports. Revaluation is independent one, only require when we done business in foreign currency transactions.

Consolidation:
To preapare consolidated financial statements, we have to run consolidation process. its just mapping of chart of accounting to consolidate transactions/balances depends upon business requirment.

Link with consolidation:
Eg: parent company is india compnay i.e. I company. subsidiary company is foreign company i.e, F compnay. to consolidate F company with I compnay. we have to run Translation process in F set of books. then only all balances is convered from F currency to I currency.

So if currencies are different b/w parent and subsidary then only Translation is required in consolidation process. in this case consolidation is dependent on translation.

Translation ;
To traslate BALANCES from functional currency to other currency.

Hope this will clear your doubt.