What this article covers: How to set up and use the Consolidation Translation Adjustment (CTA) feature in BrizoConsol — enabling CTA for foreign subsidiaries, configuring the CTA account, setting equity historical rates and retained earnings rates, and reconciling CTA journals before reporting.

The CTA page handles setup for foreign currency translation adjustments that arise when a subsidiary's functional currency differs from the group's presentation currency. CTA is calculated automatically during consolidation runs — this page is for configuration only.

🛈 When is CTA needed? CTA only applies to entities where the Functional CCY (the entity's own currency) differs from the Presentation CCY (the group's reporting currency). Entities where both currencies are the same do not require CTA — the toggle will be disabled for those entities automatically.

1. Accessing CTA Setup

Go to Adjustments → CTA from the left navigation. The page shows a table of all subsidiary entities with their currency configuration and CTA status.

Column Description
Entity The subsidiary entity name
Functional CCY The entity's own operating currency — the currency its transactions are recorded in
Presentation CCY The group's reporting currency — the currency consolidated reports are presented in
CTA enabled Toggle to enable or disable CTA for this entity. Only available when Functional CCY ≠ Presentation CCY.
Equity rates Number of equity accounts with historical rates configured — e.g. "3 accounts". Click the entity row to configure.
RE rates Number of years of retained earnings rates configured — e.g. "4 years". Click the entity row to configure.

The top-right of the page shows how many entities have CTA enabled (e.g. 1 of 3 entities enabled for CTA). Use the search bar to filter by entity name.

2. Enabling CTA for a Foreign Subsidiary

1
Locate the entity in the Subsidiary entities tableOnly entities where Functional CCY differs from Presentation CCY can have CTA enabled.
2
Toggle CTA enabled to ONThe entity row expands to show the CTA configuration panel below the table.
3
Configure the CTA AccountClick the settings icon (gear) next to the entity count to open CTA Account Settings. Select the Common COA account to which CTA postings should flow — e.g. 3500 - CTA Reserve. You can also create a new account using Create Account. Click Save CTA Account to confirm.
Note: Changing the CTA account will remove existing auto CTA postings. Re-post CTA after saving.
4
Configure historical ratesThe CTA configuration panel below the entity table has two tabs — see Sections 3 and 4.

3. Equity Historical Rates

Click the Equity historical rates tab in the CTA configuration panel. This shows each equity account movement with its historical rate — used to translate equity balances at the rate in effect when the equity was first recorded (share issuances, capital injections, etc.).

Column Description
Movement date The date of the equity movement — each movement is listed as a separate line
Account The equity account — e.g. Shares, Common Stock
Account code The Common COA account code
Movement The amount of the equity movement in the functional currency
Historical rate The exchange rate to apply for this movement. Editable — type directly to override the system rate.
Source System — rate was set automatically from Exchange Rates. Manual — rate has been manually overridden.
Action Reset to System — reverts a manually overridden rate back to the system-calculated rate
Translated The movement amount translated into the presentation currency at the historical rate
💡 Tip: Override the historical rate only when you know the exact rate that was in effect on the movement date — for example, the rate recorded in the original share issuance agreement. Click the rate field to edit it directly; the Source badge will change from System to Manual.

4. Retained Earnings by Year

Click the Retained earnings by year tab to configure the translation rate for retained earnings accumulated in each fiscal year. Rates default from yearly averages — changes made here are preview only until CTA is posted.

Column Description
Year The fiscal year the retained earnings relate to
Closing RE The closing retained earnings balance for that year in the functional currency
Rate The exchange rate used to translate retained earnings for this year. Editable — type to override.
Source System — defaulted from yearly average Exchange Rates. Manual — manually overridden.
Action Reset to System — reverts a manually overridden rate back to the system yearly average
Translated The closing RE translated into the presentation currency at the configured rate
⚠️ Preview only: Changes to retained earnings rates are in preview until CTA journals are posted. The note on this tab reads: "Rates are defaulted from yearly averages. Changes are preview only in this phase." Post CTA to apply them.

5. Posting CTA Journals

Once historical rates are configured, click Post CTA Journal in the top-right of the CTA setup page to calculate and post the CTA adjustment journals automatically. CTA posting uses fiscal year-end periods.

⚠️ Important: If you change the CTA Account after journals have already been posted, the existing auto CTA postings will be removed. You must re-post CTA after saving the new account.

6. Reconcile / Verify CTA

Click Reconcile / Verify CTA (top-right of the CTA setup page) to open the CTA Reconcile / Verify page. This view shows all CTA journals — both system-generated and manual — before they flow into consolidated reports.

Section Description
Auto CTA Journals System-generated CTA journals posted at fiscal year-end. Each row shows: Date, Journal ID (e.g. CTA-AUTO-202712-ACTUAL-0001), Journal Type, Organisation, Source (Auto CTA), Description (e.g. Auto CTA posting fiscal year-end 2027), Debit, Credit, Diff, and a link to Show entries.
Manual CTA Journals Any manually posted CTA journals — same columns as Auto CTA Journals. Empty if no manual journals have been posted.

Use the Scenario selector and Year filter (All years, or a specific year) to narrow the view. A Diff of 0.00 on all rows confirms that all CTA journals are balanced. Click Show entries on any row to see the individual debit and credit lines.

💡 Workflow summary:
  1. Enable CTA for each foreign subsidiary (Functional CCY ≠ Presentation CCY)
  2. Set the CTA Account via CTA Account Settings
  3. Configure Equity historical rates — override where necessary
  4. Configure Retained earnings by year rates — override where necessary
  5. Click Post CTA Journal
  6. Click Reconcile / Verify CTA to confirm all journals are balanced (Diff = 0.00)