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Adaptive Insights
Knowledge @ Adaptive Insights LLC, a Workday company.

Currencies Overview

Introduces currencies, exchange rate types, and the Manage Currency screen.

You can add currencies and exchange rate types to your instance, including currencies defined by you. Once a currency is added, it's available for use on levels and accounts.

Currency Interface

1 List of your model's currencies.

2 List of exchange rate types.

3 Currency settings.

Manage Currencies 

Currencies

In the Currency section:

  • Review currencies in your model. The green checkmarks, tell you which currencies are Default Reporting Rates and which are User Defined.
  • Add or edit currencies, either standard or user defined.
  • Assign currencies to levels.
  • Enter exchange rates for each currency pair and type.

Standard Currency

Standard currencies are provided by Adaptive Insights and include the standard currency code. You can define the decimal placement and choose whether or not to use reporting rates.

User Defined Currency

Custom Currency
 

When a currency is user defined, you or someone on your team created the currency. User defined currencies don't have to correspond to real currencies. You can create the code, the description, and the exchange rates.

Use these currencies to differentiate the same currencies in different versions or to report on best and worst case scenarios. For example, you may have several different contractually defined currency rates for Euros, so you can create a user-defined currency for each one. Or you may want to forecast with a user-defined Euro with a favorable rate as a best case scenario, and a user defined Euro with a unfavorable rate as a worst case rate.

Reporting Currencies

When a currency is marked as a reporting currency, the system creates direct exchange rates between it and all other active currencies in the system. You can select this option for a currency when you add new currencies or edit currencies.

Making a currency a default reporting currency enables a more precise exchange rate for the reporting currency when it is used in reports, compared to non-reporting currencies, whose exchange rates are calculated by converting them to the corporate currency and then to the target currency. However, because of the large number of exchange rates created when currencies are marked as reporting currencies, this feature should be used with caution, as once the exchange rates have been created, they must have their values entered and maintained each month in order for reports that use them to have the correct values.

Exchange Rate Types

In the Exchange Rate Types section, review the types of exchange rates your model uses and add new exchange rate types.  All instances have Average and End of Month exchange rate types, which are the defaults for income statement accounts and balance sheet accounts, respectively. You can also add, edit, and delete your own exchange rate types, which can then be used to store historical exchange rates.

When you select the Enter Currency Exchange Rates in the Currency section, you'll see all the exchange rate types listed in this section for each currency pair. Use the Currency Exchange Rate screen to enter actual rate values on a monthly basis. You can also import exchange rates using the Import tab in the Integration area.

Accounts with Time Strata Different from General Ledger Accounts

General Ledger (GL) accounts default to month for their time strata unless a custom calendar is in use. Other accounts (including modeled and cube accounts) can use a different time setting than the GL, such as week or quarter. To ensure expected results for currency exchange rates when accounts have different time strata, there are two approaches:

For accounts that are of a lower stratum than the GL:

If an account has a time stratum (week) that is lower than the GL accounts (month), then that account uses the exchange rate value for the roll-up time period on the GL stratum. As an example, if the account uses week, and your GL uses month, then the exchange rate for month is used.

For accounts that are of a higher stratum than the GL:

If an account has a time stratum (quarter) that is higher than the GL accounts (month), then that account uses the exchange rate value for the last enclosed time period on the GL stratum. As an example, if the account is quarterly and your GL uses month, then the exchange rate for the last month of each quarter is used.

If you want to use a different exchange rate for all quarterly accounts, you can create a quarterly exchange rate type and enter your quarterly exchange rate into each last month of the quarters. Select that exchange rate type on each exchange rate account.

Settings

You can set your exchange rate method and enable cumulative translation adjustment (CTA) at the bottom of the screen.

If Multiplier is selected as your exchange rate method, source values will be multiplied by exchange rates to get the value in the target currency. If Divisor is selected, source values will be divided by exchange rates to get the value in the target currency.

When CTA is enabled, the system creates an account in the Equity account tree to handle any variances created within the Equity account tree and the Assets and Liabilities account trees resulting from the presence of different exchange rate types in those trees. This account cannot be edited or imported to. Once created, its properties (including its name) can be edited from GL Account Administration.

If your instance has unpublished currency-related changes, a warning line will inform you that edits cannot be made on this page until the changes have been published.

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