Reporting Currency

Creating a Reporting Dimension for Currency Reporting

Reporting currency members help generate reports in a common currency (CC) for accounts required to be converted to CC at a special rate. For example, converting all accounts at the ‘Prior year Rate.’ The advantages include:

• No additional scenarios for rate analysis as you can use a single scenario for all analysis.

• No need for multiple exchange rates management.

• No need to refresh preloaded budgets.

• No need for explicit cube processing.

• Requires the ‘Consolidation Process’ to be executed once. This process runs in the cloud. Upon completion you will receive a notification.

This type of reporting requires the following:

• Creation of required exchange rate type members (currency types), which is a one-time activity. For example, if comparative reports are required to do a what-if analysis in case of three different rates, then AVG rate, AVG-Case1 and AVG-Case2 exchange rate type members need to be created and used.

• Population of the exchange rate table for currency types.

• Creation of new reporting currency members, which is a one-time activity.

• Mapping accounts with the rate to be used. For instance, the “Case-1” reporting member will need all income statement accounts mapped with “AVG-Case1” and balance sheet accounts with “EOM-Case1”. This is a one-time activity.

• Run the Consolidation Process. User access must be granted access to run the Consolidation Process.

• Update existing reports to the preloaded rate set scenarios to use the reporting currency members.

In Practice: Define Currency Types

Create the Currency Types for PY Rate and LBE Rate.

1. Navigate to Maintenance > Currency > Currency Setup.

2. Click the Currency Type tab.

3. Click Add.

4. Add a currency type named PY Rate.

5. Click Save.

6. Click Add.

7. Add a currency type named LBE Rate. Click Save.

In Practice: Set Up the Reporting Currency Member

1. Create a Reporting Currency member and map a currency type. Access the Hierarchy Management screen by Navigating to Maintenance > Hierarchy > Hierarchy Management.

   1. Select the Finance Hierarchies type and the Reporting Dimension and Hierarchy. Click Show to display the Reporting hierarchy.

   2. Add a rollup member. In the example below the Example Rep Currency rollup is added to the Reporting Main hierarchy.

      
      
      

   3. Add a leaf member to the Example Rep Currency rollup and name it Reporting Currency for PY Rate. Click the Reporting Currency for PY Rate member to define segment properties. Select the PY Rate currency type.

      
      
      

   4. Click OK and click Save once all definition properties are complete.

In Practice: Define Currency Exceptions

1. You can define currency exceptions if you want different rates by legal entity and account. If this is the case, navigate to Maintenance > Currency > Currency Exceptions. If currency exceptions are not needed, proceed to the next step.

   1. Select the reporting currency, which is Example Rep Currency.

      
      
      

   2. Select the company in which you want to apply the PY and LBE Rates. Click Copy To to map accounts where the exception will be applied. For column C ( Currency Exception), select the currency type (PY Rate or LBE Rate ) by which you want the account converted. For example, balance accounts may need to be converted at the ‘PYEOM ’ rate as opposed to the PYRate.

   3. Continue to setup the currency exception for all companies and accounts where needed. In the image below, an account for Corporate Operations will be converted at the PY Rate.

      
      
      

   4. Click Save.

In Practice: Load Exchange Rates

1. Load the LBE and PY exchange rates for the scenario in which the conversion will take place. Navigate to Maintenance > Currency > Exchange Rates.

   1. Select the Scenario, Year, and the Currency in which you want the rate converted. Load exchange rates for the currency types. In the example below, LBE will convert at a rate of two to one and PY Rate will convert at a one to one rate.

      
      
      

In Practice: Run the Consolidation Process

1. Run the Consolidation Process for the scenario.

   1. To do so, access the Consolidation Control Panel, select the scenario, select the Consolidation Process, and click the Process action.

In Practice: Grant User Access

1. Grant users access to the Consolidation Process. Now you can report the PY RATE and LBERate currencies for the Scenario using reporting members.
2. Read through the Reporting Currency Use Case below for a better understanding.
   Note:

   Post data and exchange rates for the last period of the previous financial year and run the Consolidation Process to ensure that the currency conversion, MTD/YTD values of the first period of the current financial year, is accurate.

Reporting Currency Use Case

Set up a Reporting Currency to calculate all Profit and Loss (P & L) accounts using a Year-to-Date rate (same as the Balance Sheet).

Company KLMZ is implementing Planful. Their general ledger is set up to convert local currency to common currency on a year-to-date (YTD) basis. So, in June, all YTD data is reversed at the prior month exchange rate and then reconverted at the new rate for June.

Perform the below steps to set up a Reporting Currency:

1. Navigate to Maintenance > Hierarchy Management. Select Type as Finance Hierarchies, Dimension, and Hierarchy as Reporting.
   
   
2. Click Show. 
3. Select the hierarchy and click Add. 
   
4. Select Rollup Node and Rollup Member.
5. Enter Member Name and Member Code and select segment properties.
   
   
6. Double-click AAMCO in the hierarchy and click Add.
   
   
7. Select Leaf Node - Leaf Member and click Add.
   
   
8. Select the Currency Type.
9. Select Yes for Currency Exception.
   
   
10. Click Save.
11. Access the Currency Exception page by navigating to Maintenance > Currency > Currency Exception.
12. Select the AAMCO Reporting currency as shown below.
    
    
13. Click Add. Select the company for which you want to define the exception and click Add.
    
    
14. Select the Currency Exception for the company from the dropdown.
    
    
15. Load Currency Exchange Rate to convert the currency as needed for a selected scenario and year.
16. Run the Consolidation Process on that scenario to update all of the exchange rates. In reporting, select the new Reporting Currency (Currency). All P&L accounts will be translated.