CTA Sets

CTA Sets are essential for generating values in Cash Flow statements using the Reporting currency. Here's an example setup:

• Configure the Reporting currency to convert all accounts using the same rate and calculation type.
• Make exceptions for Cash and Cash Equivalent accounts, using the End of Month rate and Balance Type calculations.
• Set up CTA Sets to calculate CTA solely on Cash and Cash Equivalent accounts.

This configuration ensures that the application calculates the CTA impact solely on the designated accounts within the CTA Set.

Establish CTA account sets (or groups of accounts) to manage gains or losses resulting from involvement in foreign currency business. Identify source accounts where CTA is calculated and target accounts where CTA is posted.

This is where you define the accounts where you want CTA calculated and posted. For example, you can set the account of your CTA account to an Owner's Equity account to create a translation adjustment on your balance sheet. Or, set the account to a Revenue or Expense account to create a translation gain/loss on your income statement. 

1. Access CTA Sets by selecting Maintenance > Currency > CTA Sets.
   
   
2. If you already have CTA Sets defined, they will be listed as shown below. Otherwise, click the Add icon.
   
   
3. Two panes are enabled. The left pane displays CTA Sets created, those that are in the process of being created (Unsaved Sets).
   
   A description of all fields on the page above is provided below:
   • Select the Base Rate in which the CTA will be calculated. Base rates are set up on the Currency Type page, which can be accessed by selecting Maintenance > Currency > Currency Setup and then clicking the Currency Type tab.
   • Source Accounts - Select the accounts to include in the CTA Set. Click Add Accounts.
   • Manage Source Account(s)- Add accounts to the set. The accounts you select will calculate CTA.  Expand and collapse the hierarchy or search for accounts. Selecting the checkbox next to the account adds it to the Selected Accounts pane as shown below.
     
     
   • Target CTA Setup - Click the Browse icon next to each dimension to select a value for Account, Department, Product, Project, Customer, Custom 2, and Interco. The account selected here is where CTA will be posted.
     
     
4. Click Save.
   
   
   Note: You can also perform the below actions on the CTA Sets page. 

   • Refresh- Click the Refresh icon to refresh the page.
     
     
   • Delete- You can delete CTA Sets using the Delete icon. Select the checkbox next to the CTA Sets and click the Delete icon.
     
     
   • Copy- Select the checkbox next to the CTA Sets and click the Copy icon to copy a CTA set.
     
     
   • Show Ascending/Descending- Click the  Show Ascending/Descending icon to sort the CTA Sets in increasing or decreasing order of the alphabet.
     
   • Select All- Select the checkbox next to Select All to select all the CTA Sets.
     
     
   • Showing All- Search for CTA Sets using the initials and press Enter to view the search results.
     
   
   

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. Access the Consolidation Control Panel from the Planful application Home page.
2. Click Consolidation Setup under the Administration pane.
   
   
3. Specify CTA account sets defined on the CTA Set page.
   
   
4. Click Save. 

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.