According to the basic principles of group consolidation, all balance sheet items are translated into the node currency using the balance sheet currency rate type defined on the balance version. As an alternative to the balance sheet rate the balances can however be translated to an historical rate defined in the historical consolidated rates window.
The same reported balance can be translated to historical rates in any number of currencies during the consolidation process. If no historical rate is given for a combination of consolidation dimensions in a selected node currency the balances will be translated to the balance sheet rate.
The difference between the closing rate balance and the historical rate
balance will be posted to a selected difference account using posting types
GCP23 and GCP24.