What is translation method in SAP EC-CS - Consolidation?

SAP Term: translation method

• Component: EC-CS

• Component Name: Consolidation

• Description: A method for translating foreign currency. Various translation methods can be applied, such as the straight current-rate, modified current-rate, and temporal methods. In the application, data reported by each consolidation unit can be translated using a specific method, which is assigned to a consolidation unit in its master record. Translation methods are defined by: Translation entries, for translating the FS items Rounding entries, for checking for rounding differences during currency translation

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• Key Concepts: 
  Translation Method is a feature of the EC-CS Consolidation component of SAP. It is used to convert the financial statements of a company from one currency to another. This is done by using exchange rates that are either manually entered or automatically retrieved from external sources. The translation method also allows for the adjustment of the exchange rate to account for differences in the timing of transactions. 
  
  How to use it: 
  To use the Translation Method, first select the currency you want to convert from and to. Then, enter the exchange rate manually or select an external source for automatic retrieval. Finally, adjust the exchange rate if necessary to account for differences in the timing of transactions. 
  
  Tips & Tricks: 
  When using the Translation Method, it is important to ensure that the exchange rate used is up-to-date and accurate. Additionally, it is important to consider any differences in the timing of transactions when adjusting the exchange rate. 
  
  Related Information: 
  The Translation Method is part of a larger suite of features available in the EC-CS Consolidation component of SAP. Other features include consolidation, currency conversion, and reporting.