How to use a Cumulative Translation Adjustment (CTA) account in Management Reporter

The need for this account is usually due to the difference when you translate a Balance Sheet report in Management Reporter.  Things like Retained Earnings or Property, Plant, & Equipment accounts use the Historical rate method where the rest of the Balance Sheet is revalued at the Current rate.  This causes your Balance Sheet to be out of balance.

For most customers we have seen them handle this a couple ways:

• Use an existing account to roll this balance into.
• Create an account in GP called CTA.

 Then in the row definition of your Balance Sheet go to Edit | Rounding Adjustment.

As you can see this defines the Total Asset row and Total Liabilities and Equity row on your balance sheet.  These will be different numbers for your Balance sheet report.  The first line would be your adjusting row.  This is usually pointed to an existing account like Retained Earnings or more commonly an actual account that you enter on your Balance Sheet called CTA, that was created in GP.

If you wish to monitor this rounding or have a warning when over a certain amount, you can use the Adjustment amount limit.  This will give you a warning if this amount is over a certain dollar threshold when you run the report.

Once this is created it will calculate the difference between the Total Assets row and the Total Liabilities and Equity row.  That difference will be placed in the Rounding Adjustment Row.  The Rounding Adjustment row will act as your CTA account.