Description
Learn how to configure consolidation exchange rates, flag accounts, set financial close accounts, and monitor CTA balances in SoftLedger when consolidating multiple entities across different reporting currencies.
Prerequisites
Multi-entity Locations and reporting currencies are set up.
Balance sheet accounts subject to remeasurement have Remeasure Forex = TRUE; equity accounts that translate at historical rates have Use Historical Rate = TRUE. See How do I remeasure foreign currencies?.
Currencies are configured under Settings → Currency.
Step 1 — Enable Ledger Accounts for Remeasurement & Historical Rates (Optional)
For balance sheet accounts with posted currency ≠ functional currency:
Financial → Accounts → edit account → enable Remeasure Forex.
SoftLedger will auto-post reversing FX entries at period end. Income statement accounts remeasure at transaction time. See How do I remeasure foreign currencies?.
For equity accounts, enable the use historical rate setting to TRUE so that journal lines against equity accounts consolidate at their historical transaction date rate.
Step 2 — Map Financial Close & FX Accounts
Settings → Accounts → Financial Close → map Retained Earnings, Other Comprehensive Income (OCI), and Accumulated OCI (AOCI).
Financial → Locations → (select location) → assign the Unrealized and Realized Foreign Currency Gain/Loss accounts.
(If Required) Configure an End-of-Period Elimination Clearing Account to allow SoftLedger to auto-book elimination entries. See End of Period Elimination Entries.
Step 3 — Set Consolidation Rates
SoftLedger uses Consolidation Rates each period to translate child entities into the parent’s reporting currency:
Balance Sheet → Spot Rate (closing).
Income Statement → Weighted Average Rate (defaults to Spot if no activity).
Go to Admin → Consolidation → Consolidation Rates → Add Rates. This auto-populates exchange rates; edit as needed. You can also populate rates from the consolidated report banner.
Step 4 — Close Periods
Month-end: run remeasurement, review activity, and let SoftLedger auto-book elimination entries if configured.
Year-end: in Admin → Accounting Periods, close the fiscal year to trigger Retained Earnings and carryforward balances.
Step 5 — Review Consolidated Reports
With Consolidated = ON, reports apply the configured rates and show CTA automatically:
Trial Balance → shows a Cumulative Translation Difference section (CTA plug). See Trial Balance (Enhanced Reporting).
Balance Sheet / Income Statement → translated balances with toggle & date picker options. See Balance Sheet (Enhanced Reporting).
FAQs
Where does CTA appear?
On consolidated reports, CTA is booked automatically to OCI/AOCI and displayed in the Cumulative Translation Difference section under Equity.
Do I need CTA if all entities share one currency?
No—Consolidation Rates are only needed when parent and child currencies differ.
Does remeasurement affect CTA?
No—remeasurement is at the entity level (FX gains/losses to income). CTA is a consolidation adjustment (to equity/OCI).