How to Specify CTA Accounts in Consolidation?

How to Specify CTA Accounts in Consolidation?

You can specify the Target Balance Sheet, Balance Sheet Members for Balancing, and Income Statement CTA Account Sets in Consolidation. Perform the below steps to set up CTA Sets in consolidation:

1. Navigate to Consolidation to open the Consolidation Control Panel
2. Click Consolidation Setup under the Administration pane.
   
3. Specify CTA account sets defined on the CTA Set page.
   
4. Click Save. 

How to Set Up CTA Sets in Hierarchy Management?

You can configure reporting currency to calculate the currency and cash flow conversions with CTA Sets on the Hierarchy Management page. This is where you can overwrite the default target CTA. You can do this when you determine the impact of each account on the total CTA and you want to post CTA calculated on a selected set of accounts to a different set of target accounts.

When you create a CTA Set, you define the following:

• Source accounts on which CTA needs to be calculated
• Target account to which CTA needs to be posted - you can overwrite these accounts for a reporting currency member in hierarchy management.
• Base rate to calculate the CTA on the Source accounts

Perform the below steps to overwrite the default target CTA:

1. Navigate to Maintenance > Hierarchy Management and select Type as Finance Hierarchies, Dimension as Reporting, and Hierarchy as Reporting.
   
2.  Click Show. 
3. Select a reporting member. Select the Overwrite default CTA checkbox to overwrite the default CTA target posting accounts.
   
4. Once Overwrite default CTA is selected, CTA Sets is enabled in the lower portion of the pane. Click Manage to add sets defined on the CTA Sets page or manage existing sets.
   
5. Search and select CTA Sets by enabling the checkbox. Click Save to commit selected CTA Sets.
   

When you run the Consolidation Process on the reporting member, the CTA calculation will be performed on the accounts specified here.

Cumulative Translation Adjustments Roll Forward 

You can manage Cumulative Translation Adjustments (CTA) during the roll-forward process if your organization is dealing with multiple currencies. This ensures that your consolidated financial statements accurately reflect the impact of currency exchange rate fluctuations.

To manage CTAs during the roll-forward, do the following:

• Set up the Currency Translation Adjustment - Balance Sheet account in Consolidation. 
  • Navigate to Consolidation > Consolidation Setup.
  • Configure the Currency Translation Adjustment - Balance Sheet account to capture out-of-balance amounts resulting from currency conversions.
• Enable the Retained Earnings Roll Forward functionality
  • Navigate to Maintenance > Administration > Configuration Tasks.
  • Under Consolidation, click Retained Earnings Roll Forward to enable this functionality. 
• Configure the CTA Sets
  • Navigate to Maintenance > Multi-Currency > CTA Sets.
  • Set up CTA Sets
• Generate the CTA Detailed Report
  • Navigate to Maintenance > Report Administration > Standard Reports and Run the CTA Detailed Report.