/visma-net-erp/help/currency-management/manage-translations section In Visma Net, amounts can be translated from the base currency to another currency at the account balance level. 2026-02-19T17:09:06+01:00 # Manage translations In Visma Net, amounts can be translated from the base currency to another currency at the account balance level. In Visma Net, amounts can be translated from the base currency to another currency at the account balance level. Translation may be needed, for example, for reporting purposes if the company is a subsidiary of a larger entity and its financial statements are included in the consolidated statements of the larger entity that are prepared in a different currency. This functionality is available only if the **Translation of financial statements** functionality is enabled the [Enable/disable functionalities (CS100000)](/visma-net-erp/help/common-settings/enable-or-disable-functionalites/enable-disable-functionalities-cs100000/) window. /visma-net-erp/help/currency-management/manage-translations/about-translations page To use the translation functionality in Visma Net, you need to configure an appropriate translation definition (or multiple definitions) that defines the source and destination currencies, the source and destination ledgers, the branch and involved General ledger accounts used for the translation. 2026-02-19T17:09:06+01:00 # About translations To use the translation functionality in Visma Net, you need to configure an appropriate translation definition (or multiple definitions) that defines the source and destination currencies, the source and destination ledgers, the branch and involved General ledger accounts used for the translation. To use the translation functionality in Visma Net, you need to configure an appropriate translation definition (or multiple definitions) that defines the source and destination currencies, the source and destination ledgers, the branch and involved General ledger accounts used for the translation. By using the [Translation definition (CM203000)](/visma-net-erp/help/currency-management/currency-management-windows/translation-definition-cm203000/) window, you can define as many translation definitions as needed, each having a unique ID. If one translation type is run more often than others, you can set it as the default translation in the **Default translation ID** field in the [Currency management preferences (CM101000)](/visma-net-erp/help/currency-management/currency-management-windows/currency-management-preferences-cm101000/) window. You can create a translation for a particular financial period by using the [Prepare translation (CM501000)](/visma-net-erp/help/currency-management/currency-management-windows/prepare-translation-cm501000/) window. The result of this translation preparation is a translation worksheet that may be manually edited in the [Translation worksheets (CM304000)](/visma-net-erp/help/currency-management/currency-management-windows/translation-worksheets-cm304000/) window. For a defined type, subsequent translations for the same financial period are incremental: The current translation adjusts the result of the previous released translation to match the current one. When the translation is released, an appropriate batch of adjusting transactions is created. ## Translation batch On release of the translation, the system automatically generates a translation batch that contains a journal entry for each account–subaccount pair involved in the translation. The translated amounts are posted to the destination ledger under the appropriate account and subaccount. Since translation uses different exchange rates for different types of accounts, there will be a difference between total of the assets and total of the liabilities. This difference will be posted to the **Translation gain** account and **Translation loss** account specified for the reporting currency in the [Currencies (CM202000)](/visma-net-erp/help/currency-management/currency-management-windows/currencies-cm202000/) window. The similar accounts for the base currency are specified in the [Currency management preferences (CM101000)](/visma-net-erp/help/currency-management/currency-management-windows/currency-management-preferences-cm101000/) window. The gain or loss of each subsequent translation is calculated with respect to the previous translation performed for the same period. /visma-net-erp/help/currency-management/manage-translations/about-creating-translation-definitions page For each translation definition, create a reporting ledger to hold translation results, and specify the reporting currency as the ledger's currency in the Ledgers (GL201500) window. 2026-02-19T17:09:06+01:00 # About creating translation definitions For each translation definition, create a reporting ledger to hold translation results, and specify the reporting currency as the ledger's currency in the Ledgers (GL201500) window. For more information: [Ledgers (GL201500)](/visma-net-erp/help/general-ledger/general-ledger-windows/ledgers-gl201500/). For each translation definition, create a reporting ledger to hold translation results, and specify the reporting currency as the ledger's currency in the [Ledgers (GL201500)](/visma-net-erp/help/general-ledger/general-ledger-windows/ledgers-gl201500/) window. The parent company can later use this ledger (in a subsidiary) as a source ledger for consolidation of balances. You use the [Translation definition (CM203000)](/visma-net-erp/help/currency-management/currency-management-windows/translation-definition-cm203000/) window to define rules for the translation. Also, you should specify the ranges of accounts and subaccounts to be translated and the translation methods. You can specify different translation methods for different ranges of account–subaccount pairs. These ranges should not intersect or contain the same pairs. ## Translation methods Visma Net provides the following translation methods, which can be used for different types of accounts: Year to date balance : Balances of the specified accounts (generally assets and liabilities) are translated using the exchange rate (of the type specific for this method) effective at the translation date. If there is a difference between the translated balance and the account balance stored in the translation ledger for the previous period, then the transaction will be generated to adjust the balance. The balance of the year to date net income account is not translated even if the account is included in one of the ranges. Period to date balance : Balances of the selected accounts are translated using the exchange rate of the type specific for this method effective at the translation date. If the period to date balance of the account is not zero, then the transaction will be generated to update the account balance by the translated period to date balance. All subsequent translations for the same period will adjust the account balance if it is changed. ## Translations in foreign currencies In case you translate the account balances from one foreign currency to another, you should maintain direct exchange rates between those foreign currencies in the currency exchange rate database. You can create the types of rates for translations by using the [Currency rate types (CM201000)](/visma-net-erp/help/currency-management/currency-management-windows/currency-rate-types-cm201000/) window and enter the current rates by using the [Currency rates (CM301000)](/visma-net-erp/help/currency-management/currency-management-windows/currency-rates-cm301000/) window. The rates used for translations may be specified as the base currency rates with respect to the reporting currency. The regulations of a particular country dictate the method of choosing the appropriate exchange rates for the translation. In most countries, the method used to translate the financial statements from the base currency to the reporting currency depends on whether the base currency (the currency of the foreign operation) is the currency of a hyper-inflationary economy: + If the base currency is not hyper-inflationary, revenues and expenses are translated at the exchange rates effective on the dates of transactions or by using an appropriately weighted average exchange rate for the period. Assets and liabilities are translated at the period-end rate. + If the base currency is hyper-inflationary, all the balance sheet and income statement items are translated at the rate effective on the period-end. ## Translation editing You can view the result of translation on a translation worksheet in the [Translation worksheets (CM304000)](/visma-net-erp/help/currency-management/currency-management-windows/translation-worksheets-cm304000/) window. If needed, you can manually edit the worksheet. As you adjust the values, both the credit total and debit total in this window change synchronously to reflect the changes, because one of them contains the translation gain or loss. When you are done editing, enter a new **Control total** value before you save the modified worksheet.