The Currencies link on the Modeling > Model Management screen allows you to add currencies and exchange rate types to your instance, making them available for use on levels and accounts.
The top section, 1 Currencies, lists all of the currencies configured in your system along with basic information about them. It also gives you the ability to add new or edit existing currencies. The bottom section, 2 Exchange Rate Types, lets you manage and edit the types of exchange rates, such as Monthly Average or End of Month, between the currencies in your model.
Deleting a Currency
- Check that the currency is not used on any current levels. For a currency to be deleted, it must not be in use.
The Manage Organization Structure screen (go to Modeling > Model Management and click Levels) lets you see and change the currency assigned to each level. Select a level to check its currency, and change the currency as necessary.
Setting a currency for a parent level applies that currency to all levels below the parent in the organization structure.
- Go to Manage Currencies (Modeling > Model Management and click Currencies.
- Click Delete next to the currency you want to delete.
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. This 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
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 in the Exchange Rate Types section of the Manage Currencies screen, which can then be used to store historical exchange rates.
All exchange rate types listed here will appear for each currency pair on the Enter Currency Exchange Rates screen, where the actual rate values can be entered manually on a month-by-month 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.
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.