Translation Query

I have a question concerning the PVA method used in the comma application. The following code given below is listed under the Translate routine in the Rules for Comma application.
HS.Trans "C4#ForeignExchange", "C4#ClosingBalance", "A#ClosingRate", ""
HS.EXP "C4#ForeignExchange = -C4#ClosingBalance.P#Last.Y#Prior"
HS.Exp "C4#ForeignExchange = -C4#Increases"
HS.Exp "C4#ForeignExchange = -C4#Movement"
HS.Exp "C4#ForeignExchange = C4#Decreases"
I was trying to understand the code. when I executed the code the first line "HS.Trans "C4#ForeignExchange", "C4#ClosingBalance", "A#ClosingRate", executed fine and I can see the Translated value of Closing Balance in the parent currency member for C4#ForeignExchange.
But after that I am not sure what the code is expected to do since its being assigned to the same member C4#ForeignExchange.
The point of view in the grid is year=2007 and period = January and Scenario="BudV2".
The second line is *"HS.EXP "C4#ForeignExchange = -C4#ClosingBalance.P#Last.Y#Prior".
So for the year 2006 and for period December , C4#Closing Balance contains some value for Scenario= BudV2 but when I run the script the value does not get populated to "C4#ForeignExchange for Year =2007 and Period=January. I also want to understand how the code should work.
I am new to HFM and any help will be appreciated.
Thanks in Advance

First you must bear in mind that the translation routine is called after the default translation happens and also that it work cumulatively, so that HS.Exp does not overwrite values to the destination, it accumulates them.
Then you have to remember that the balance figures (OpeningBalance) are by default translated using the ClosingRate, while the flow figures (Increases, Movement, Decreases) default translate using the AverageRate.
The first line calculates the foreignexchangediff movement and places the whole value of the closingbalance translated using the closingrate. Because the closingbalance is composite, after the first line executes the foreignexchange account contains the amount as if all children accounts had been translated with the closingrate. We have to subtract from it each individual child which translates with a different rate than closing to arrive at the proper foreign exchange difference value.
OpeningBalance contains the previous year end value ClosingBalance which is translated with the previous year's closing rate. Despite the fact that during translation it will translate with the current ClosingRate, however after translation calculation rules execute again and bring in the previous year's translated ClosingBalance.
Increases, Movement and Decreases contain values which have translated with average rate.
After subtracting all the above, we end up with the ForeignExchange value. You can do a little math as follows:
Closingbalance * closingrate = openingbalance * closingrate + movements * closing rate
FxExch = closingbalance * closingrate - openingbalance * openingrate - movements * averagerate =
= openingbalance * (closingrate - openingrate) + movements (closingrate - averagerate) which should be so.
Edited by: kostasn on Mar 15, 2010 12:44 PM

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