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Can someone explain the "Currency Translation Type" in the "Select Account Currencies" window. There are 3 options, Average, Current, Historical. What translation type should you assign to which general ledger accounts? Should all the income statement accounts have the "Average" translation type? What translation type should the balance sheet accounts have? Does it even matter what Currency Translation Type you assign to your general ledger accounts?
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Thanks for your prompt answer, Susan. It really helped.
Typically you have your balance sheets are Current, your P&L as average. Historical is typically used for Cash Balances at year end as well as for Fixed Assets. And it makes a difference. If you look at the average rates (usually monthly) as opposed to the GBP (Great Britain Pound for Dec 2012). I know we come up with a significant translation adjustment) that gets booked to our exchange differences, in order for our balance sheet to balance. This year at 12/31/2013 the GBP current rate was 1.612500 while the average rate was 1.5625730. Which represents a difference of .0049927 or almost 1/2 of a cent per dollar.
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