We have implemented Tridion Translation Manager and have a configuration similar to the below
01 English Content (Source for translation)
02 Other Language Content (Target for Translation, Inherits from 01)
03 Website Publication (Inherits from 02)
The Translation is working as expected in the CME. We are also able to translate components at the 03 level as we have implemented a Translation Manager plugin that initiates translation at the correct level.
The problem we are having is that experience manager is enabled for the 03 Website Publication. Experience manager has been configured so that it creates components at the 02 level. When a component is right clicked using the context menu, in experience manager, there is no "Translate" option.
According to most of the documentation i have read this option should just appear.
EDIT - SDL confirmed that this button should be appearing however after upgrading to 2013 SP1 the button now appears in the context menu. We did not change any Translation manager configuration.