How to Set Up CTA Sets

There are 3 areas in the application where CTA Sets need to be defined or setup:

1. CTA Set Definition in the Maintenance menu - define the accounts where you want CTA calculated and posted.

2. CTA Set setup in Consolidation - specify the account sets defined on the CTA Set page in the Consolidation Administration pane.

3. Hierarchy setup in the Maintenance menu - configure reporting currency to calculate the currency and cash flow conversions with CTA Sets.

CTA Set Definition in the Maintenance Menu

This is where you define the accounts where you want CTA calculated and posted. For example, 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.

Access CTA Sets by selecting Maintenance > Currency > CTA Sets.

If you already have CTA Sets defined, they will be listed as shown below.

Otherwise, click the Add button shown below.

Two panes are enabled. The left pane displays CTA Sets created, those that are in process of being created (Unsaved Sets), and provides the ability to search for and delete CTA Sets. You can also sort on CTA Set Code in ascending or descending order.

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 that you want CTA calculated for.

• Manage- add accounts to the set. The accounts you select will calculate CTA. Once clicked, the Manage Source Accounts page appears. 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. To remove an account from the Selected Accounts pane, click on the account.
  

• Target CTA Setup - click the Browse icon next to each dimension to select accounts. The accounts selected here is where CTA will be posted.

See Also: Currency Type

How to Setup CTA Sets in Consolidation

Specify Target Balance Sheet and Income Statement CTA Account Sets in Consolidation.

1. Access the Consolidation Control Panel.

2. Click the Consolidation Setup link under the Administration pane.

3. Specify CTA account sets defined on the CTA Set page.

Hierarchy Setup in the Maintenance Menu

Access the Hierarchy Management page by navigating to Maintenance > Hierarchy > Hierarchy Management to configure reporting currency to calculate the currency and cash flow conversions with CTA Sets. Access your Financial hierarchy and your Reporting Currency Dimension / Hierarchy.

This is also where you can overwrite the default target CTA. You might 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

In the example below, a reporting member has been created called Constant Dollar Currency. Notice the checkbox selection called Overwrite default CTA. Select this checkbox to overwrite the default CTA target posting accounts.

Once Overwrite default CTA is selected, CTA Sets is enabled in the lower portion of the pane as shown above. Click Add Sets or Manage to add sets defined on the CTA Sets page or manage existing sets. The options are shown in the image below.

Once you click Add Sets or Manage, the CTA Sets page is enabled (as shown above). On this page you can search for and map CTA Sets. Click Save to commit selected CTA Sets.

Now, when you run the Consolidation Process on the Cf currency reporting member, the CTA calculation will be performed on the accounts specified here (2 source accounts that belong to Cash Equivalent CTA Set) and posted to the Target CTA account mapped for each specific CTA Set (under Target CTA Setup).