Translation: It is used to translate functional currency balances into foreign currency balances at the account level

Revaluation: It is used identify the unrealized gain or loss .which is occurring on the currency fluctuation.

EXAMPLE:

On 01-Dec-2009 

• Functional Currency is USD
• Foreign Currency is INR. 
• Conversion Rate is 2.
• Created invoice for 100 INR, validated and ACCOUNTED. Not Paid.
• As per the above journal lines on 01-Dec-2009, customer is liable to PAY 200 USD to the supplier. 
• End of the period, conversion rate has been changed to 2.5.
• So customer’s liability will get increased to 250 USD(100*2.5).
• So customer suppose to pay 250 USD instead of 200 USD to the supplier.
• This is the true liability at the end of the period and this need to be reflected in customer’s General Ledger. Loss 50 USD should be populated in Loss account. 
• Revaluation adjusts these amounts and KEEPS gain/loss amounts in Unrealized Gain/Loss accounts defined in Revaluation window.

Translation: It is used to translate functional currency balances into foreign currency balances at the account level

Revaluation: It is used identify the unrealized gain or loss .which is occurring on the currency fluctuation.

Example:

On 01-Dec-2009