Translation adjustment account

[vangala.jpreddy]

Dear Gurus,
What is the main purpose of translation adjustment accout.
Why we need to attach the same in SOB.

Please explain me.

Thanks in advance.

Jayaprakash.

[muzaffarnaim]

Vangala

In Translation, expenses and revenues uses PAR and assets and liabilities uses PER, due to this fact; there can be a difference in 'Translated TB'. So oracle post the difference in 'Translation Adjustment Account'. Same thing happens in case of revaluation.

In other words we can say, GL automatically posts any net adjustments resulting from currency translation or revaluation to this account.

[vangala.jpreddy]

Thank you Mr.Muzaffar Naim for your cute explanation.

Jayaprakash