Currency Setup Summary

Difference Between Common Currency, Local Currency, and Interim Currency 

Common /Local Currency - You might load data to Planful in local currency, but use the common currency for reporting. For example, your local currency is Mexican Pesos, but the company reports in USD.

Interim Currency - with this currency type you can report on additional currencies other than your local and common currencies. Interim currency values are calculated for entities that have the same local currency and common currency.

Currency Use Case - Common Currency vs. Local Currency

Lets say you load your financials in Euro, but for reporting purposes you want to produce reports in USD. To accomplish this, proceed as follows:

1. Make your applications' Common Currency USD.

2. Load the Euro financials via a DLR as Local Currency.

3. Load the Euros to a Legal Entity that has Euros as the Currency.

4. Load Exchange Rates for the Euro.

5. With this in place, load the data as Local Currency (EURO) and run Currency Conversion to convert the Local Currency to Common Currency (USD).

6. Then, when you are building your reports add the Reporting dimension to your Page level selection and either choose Common Currency to show USD, or Local Currency to show the EURO.

How to Set Up Currency and Currency Type

You'll start by setting up currency and currency types on the Currency Setup page. Access the Currency Setup page by navigating to Maintenance > Currency > Currency Setup.

How To Add a Currency

1. Navigate to Maintenance > Currency > Currency Setup.

2. Click the Add button.

3. Enter a code to identify the currency, such as USD.

4. Enter a name to identify the currency, such as U.S. Dollars.

5. Click Save.

The Currency Lookup option provides search functionality to lookup currencies.

Now, add currency types, which you'll use when you define data mappings. Currency types are used during the currency conversion process. During this process, accounts are converted with defined rate types. Currency types are associated with Natural Accounts. Different types of Natural Accounts are typically converted with different rate types. For example, an Income/Expense account might be calculated with a Monthly Average Rate while a Balance Sheet might be calculated with an End of Month rate.

How To Add a Currency Type

1. Navigate to Maintenance > Currency > Currency Setup.

2. From the Currency page, click the Currency Type tab.

3. Click the Add button.

4. Enter a currency type code, such as Avg.

5. Enter a currency type name, such as Average Monthly Rate.

6. Click Save.

What are Currency and Currency Type Exceptions and When Do I Need Them

When currency conversion is performed, different types of accounts need to be converted at different rates. For example, Income Statement accounts are usually converted using an AVG (average monthly) rate whereas Balance Sheet accounts are typically converted using an EOM (End of Month) rate.

To address each conversion need, create exchange rate type members, which you assign to accounts. Exchange rates are defined for each exchange rate type. The table below has different accounts and account types with varying exchange rate types.

Currency exceptions come into play when the exchange rate type must be different for a specific subsidiary. For example, you might have a subsidiary experiencing hyperinflationary conditions resulting is fixed assets needing to be converted at a Historical exchange rate versus an EOM rate. The table below shows the same accounts and account types provided in the table above WITH a currency exception defined for company 2's Fixed Asset account.

Currency Exchange Rate

What is Currency Exchange Rate

Set up exchange rates for each budget or forecast planning cycle. Currency conversion may be performed at different rates. Currency conversions with exceptions are not executed when the Currency Conversion process takes place from the Data Load Rules process. Currency Conversions with exceptions must be executed via Currency Exchange Rates and/or the Consolidation Process to include exception details.

How to Setup Exchange Rates

1. Access the Exchange Rates page by navigating to Maintenance > Currency > Exchange Rates.

2. Select a scenario from the list box.

3. Select a fiscal year associated with the scenario.

4. Select the currency you want to view the exchanges rates for.

5. Select Apply Currency Conversion to make changes to the exchange rates and update data already loaded (for that scenario) with the new exchange rates for converting Local Currency to Common Currency. If you don’t select this option, the existing data will not be updated and the exchange rates will be applied only for new data loads.

6. Click Save.

How to Load Exchange Rates Using Data Load Rules

When you have a large number of exchange rates to load, we recommend you use a Data Load Rule.

1. Access the Data Load Rule page by navigating to Maintenance > DLR > Data Load Rules.

2. Click New Data Load Rule.

3. Enter a name and description.

4. Select a load type.

5. For Load Item select Currency Exchange Rates.

6. For Load Sub Item, select either Load Exchange Rates or Load Exchange Rates with Translations.

For information on completing the Data Load Rule set up, see Data Load Rule.

How to View all Exchange Rates on a Single Excel Sheet

You can view all exchange rates on a single Excel sheet. To do so;

1. Access the Currency Exchange Rate page by navigating to Maintenance > Currency > Exchange Rates.

2. Click Output.

3. Select Export As Excel.

Interim Currency

To learn about Interim Currency, click here. 

Currency Exception

What Are Currency Exceptions and Do I Need to Set Them Up

With Currency Exception, you can specify accounts to convert with different currency types for legal entities and hyperinflationary economies. You will need to set up currency exceptions if you need to convert specific accounts for specific companies at fixed or historical rates.

An example where a currency exception is needed is an investment on a balance sheet that must be held at a fixed rate until it is liquidated. Another common example might include the holding of inventory.

Currency exceptions defined here are applicable to Budget and Forecast scenarios. Currency conversions with exceptions are not executed when the Currency Conversion process takes place from the Data Load Rules process. Currency Conversions with exceptions must be executed via Currency Exchange Rates and/or the Consolidation Process to include exception details.

How to Setup and View Currency Exceptions

Setup Currency Exceptions

1. Access the Currency Exception Setup page by navigating to Maintenance > Currency >Currency Exceptions.

2. Select a reporting currency. This list is populated based on the name and code assigned to the reporting member defined on the Segment Hierarchies page. Select the reporting member, then set up exceptions for that member. For example, you want to have an expense account converted at an AVG rate for Local Currency to Common Currency and Interim Currency conversions as well as the same expense account converted at a weighted AVG or EOM rate.

3. Click the Add button to select companies in the right pane (hold the shift key to select multiple accounts /companies at once) and click Add.

4. Select the exception value in the Currency Exception field and click Save. Currency Type for account 2055 is Avg (shown below in Hierarchy Management). However, when the exception is copied to this account, it will be calculated with BOY when the Consolidation Process is run.

   

   

5. Click Copy To to map company exceptions to accounts.

6. In the Copy To - Accounts dialog page, select accounts and click Copy.

7. Click Save.

How to View all Currency Exceptions

On the Currency Exception Setup page, click Output All to download and view an Excel spreadsheet with defined currency exceptions. This spreadsheet lists accounts by code and name, company, and exception information. An example is provided below. In this example, company 1010 is converted with a BOY exception for accounts, 1090, 1100, 1102, and so on.

Hyperinflationary Economy

What do I do if I Operate in a Hyperinflationary Economy

Identify companies operating in hyperinflationary economies and then set up Planful so that adjustments are made to these companies to properly reflect the economic situation. For example, a U.S based company with foreign operations may need to adjust for inflation for one of their foreign subsidiaries.

What are the Steps to Identify Hyperinflationary Companies

1. Navigate to Maintenance > Currency > Currency Exceptions and click the Hyperinflationary Setup tab.

2. Select the reporting currency. This list is populated based on the name and code assigned to the reporting member defined on the Segment Hierarchies page.

3. Select the companies associated with hyperinflation in the Unmapped Company(s) pane.

4. Click the forward arrow to map the company, which indicates that it is operating in a hyperinflationary economy.

5. Click Save.

Calculation Exceptions

What are Calculation Exceptions

Exceptions to the calculation type based on currency conversions for each account and entity combination. For example, lets say you want to have an expense account converted at an AVG rate for Local Currency to Common Currency and Interim Currency conversions as well as the same expense account converted at a weighted AVG or EOM rate.

How to Setup Calculation Exceptions

Access the Calculation Exception Setup page by navigating to Maintenance > Currency > Currency Exceptions and click the Calculation Exception Setup tab. The setup performed on this page and associated with the Reporting member on the Hierarchy Management page will apply to all scenarios and all budget entities. The calculation exceptions you select based on account will populate the Segment Hierarchies Calculation Exception field.

In the example below, the Reporting Currency is Constant Dollar, which is a Reporting Member of the Reporting Main hierarchy shown below. The Calculation Exception field in Hierarchy Management is set to Yes for the Constant Dollar reporting member.

Calculations will be performed when the Consolidation Process is executed.

1. Access the Calculation Exception Setup page by navigating to Maintenance > Currency > Currency Exceptions and click the Calculation Exception Setup tab.

2. Select a Reporting Currency (which represents a reporting dimension). A maximum of 3 dimension members is allowed. This list is populated based on the name and code assigned to the reporting member defined on the Segment Hierarchies page. Select the reporting member defined, then set up exceptions for that member. For example, lets say you want to have an expense account converted at an AVG rate for Local Currency to Common Currency and Interim Currency conversions as well as the same expense account converted at a weighted AVG or EOM rate.

   The Currency Exceptions you assign to accounts on this page will populate the Segment Hierarchies Currency Exception field for Reporting members. For Example, if Consolidated Test (defined on the Segment Hierarchies page) is selected for Reporting, accounts are mapped and exceptions are entered.

3. Add companies and map accounts.

• Click the Add button in the right pane.

• Select companies to add and click Add.

• Select the Calculation Exception; Balance or Flow.

• Click Save.

• Click Copy To to copy the calculation exception to accounts.

• The Copy To Accounts page displays. Select the accounts.

• Click Copy and Save.

How to Mass Load Currency and Calculation Exceptions

You can mass load currency and calculation exceptions to save time. The documentation below provides an example.

In Practice: Currency Exception Mass Load

In this use case, a currency exception is defined for the 034 Hot Venezuela entity and mapped to accounts 11001 and 11002. Realistically, if you only had two accounts to map, you would use the Copy To action on the Currency Exception Setup page, but this is for demonstration purposes only.

As shown in the image below, account 11001 is defined with an EOM currency type. The same holds true for account 11002.

The exchange rate for Avg is two times of that for EOM as shown below. A currency exception needs to be created for the Venezuelan entity and accounts 11001 and 11002, which need to be mapped to Avg.

1. Access the Currency Exception Setup page by navigating to Maintenance, Currency, Currency Exceptions.

2. Select a Reporting Currency. Reporting currencies are available based on what you've defined in the Hierarchy Management screen for Reporting Currency.

3. In the right pane, click the Add button and select the 034-Hot-Venezuela company.

4. For Currency Exception, select Avg.

5. Click Save. The set up so far is shown below.

   

6. Instead of clicking the Copy To option and selecting account 11001 and then repeating for account 11002, click the Mass Upload icon shown below.

   

7. The Mass Load page appears. Select a file to load by clicking the Choose File button. The .xlsx file selected for this example is shown below.

   

   You can upload XLSX file types only with a maximum size of 10MB!

   

8. Click Submit to perform the upload. The system checks to see if the file contents already exists. If the contents exists, the system performs an append. If the contents does not already exist in Planful, an override is performed.

A message will appear indicating the upload processed and you can check the status in the Detail Log. Click the Output All icon to export the currency exception details to Excel.

Mass Load Exceptions - Detail View Page & Excel Error File

On the Detail View page, you can see the status of the exception file upload. Detailed information is provided in Excel output for all exceptions that occurred during the Mass Load. Open the error file that contains exception data in a table format in Excel by clicking the Click Here link in the Status column as shown below.

Example output with 2 exceptions is shown below. The purpose of viewing exceptions is to resolve them within the file (by entering a new value in this case) and upload the file again without exceptions.

Understanding File Formatting for Currency and Calculation Exception Mass Load

When you upload a file, Planful validates the Company and Account codes and the currency type. Once the upload is complete, an email is sent to the user that performed the upload. If the upload results in an error, an email is sent with an attachment that lists all errors and provides the reason why the file could not be loaded.

Files must be formatted with Account Code in the first column and Company Code in the first row. All corresponding exceptions are listed against Account-Company combinations.

In Practice: Calculation Exception Mass Load

To mass load calculation exceptions, complete the following steps:

1. Access the Calculation Exception Setup page by navigating to Maintenance > Currency > Currency Exceptions, and click the Calculation Exception Setup tab.

2. Select a Reporting Currency. Reporting currencies are available based on what you've defined in segment hierarchies. For example, because Constant Dollar is defined for the Reporting hierarchy in the Hierarchy Management screen, it is available for selection on the Calculation Exception Setup screen.

   

3. In the right pane, click the Add icon and select a company.

4. Select enter the Calculation Exception and click Save.

5. Click the Upload icon. The Mass Load page appears. Select a file to load by clicking the Choose File button.

   You can upload XLSX file types only with a maximum size of 10MB! See Understanding File Formatting for Currency and Calculation Exception Mass Load.

6. Click Submit to perform the upload. The system checks to see if the file contents already exists. If the contents exists, the system performs an append. If the contents does not already exist in Planful, an override is performed.

   A message will appear indicating the upload processed and you can check the status in the Detail Log. Click the Output All icon to export the currency exception details to Excel.

CTA

Why Should I Set Up CTA Sets

Set up CTA Sets to calculate CTA on a specific set of accounts, instead of calculating CTA as a whole. For example, Cash and Cash Equivalent accounts used in Cash Flow statements.

When are CTA Sets Required

CTA Sets would be required to generate values for Cash Flow statements using Reporting currency. You might set this up as follows:

• Configure the Reporting currency will all accounts being converted using the same rate and same calculation type.

• Create exceptions for Cash and Cash Equivalent accounts to be converted using End of Month rate and Balance Type calculations.

• Configure CTA Sets to calculate CTA only on Cash and Cash Equivalent accounts.

The setup above results in the application calculating the CTA effect only on the accounts selected in the CTA Set.

CTA sets may be required for international businesses that choose to translate functional currency balances into another currency for reporting purposes. For example, a company's home currency is euros, but the company operates in dollars.

As part of converting all transactions to a selected currency, the need to exchange currency for use in the foreign market can result in various gains and losses. Currency values fluctuate, changing how one currency is valued against another. To account for these changes, the CTA Set is used to account for the gains or losses solely related to changes in the exchange rate.

Using the example above, let's say you have a company whose home currency is euros, but the company operates in dollars. The company will have to record the CTA to compensate for currency value changes. If the rate for euros to dollars changes from a 1 to 1 value to a 1 to 2 value, a gain results. On the other hand if the value changes from 1 to 2 (dollars to euros) to 2 to 1 (dollars to euros) then a loss results.

To take advantage of this functionality, set up CTA account sets (or a group of accounts) to handle the gains or losses that have occurred by participation in foreign currency business. You'll identify accounts where CTA is calculated (source accounts) and accounts where CTA is posted (target accounts)

How to Set Up CTA Sets

There are 3 areas in the application where CTA Sets need to be defined or setup:

1. CTA Set Definition in the Maintenance menu - define the accounts where you want CTA calculated and posted.

2. CTA Set setup in Consolidation - specify the account sets defined on the CTA Set page in the Consolidation Administration pane.

3. Hierarchy setup in the Maintenance menu - configure reporting currency to calculate the currency and cash flow conversions with CTA Sets.

CTA Set Definition in the Maintenance Menu

This is where you define the accounts where you want CTA calculated and posted. For example, set the account of your CTA account to an Owner's Equity account to create a translation adjustment on your balance sheet. Or, set the account to a Revenue or Expense account to create a translation gain/loss on your income statement.

Access CTA Sets by selecting Maintenance > Currency > CTA Sets.

If you already have CTA Sets defined, they will be listed as shown below.

Otherwise, click the Add button shown below.

Two panes are enabled. The left pane displays CTA Sets created, those that are in process of being created (Unsaved Sets), and provides the ability to search for and delete CTA Sets. You can also sort on CTA Set Code in ascending or descending order.

A description of all fields on the page above is provided below:

• Select the Base Rate in which the CTA will be calculated. Base rates are set up on the Currency Type page, which can be accessed by selecting Maintenance > Currency > Currency Setup and then clicking the Currency Type tab.

• Source Accounts - select the accounts to include in the CTA Set that you want CTA calculated for.

• Manage- add accounts to the set. The accounts you select will calculate CTA. Once clicked, the Manage Source Accounts page appears. Expand and collapse the hierarchy or search for accounts. Selecting the checkbox next to the account adds it to the Selected Accounts pane as shown below. To remove an account from the Selected Accounts pane, click on the account.
  

• Target CTA Setup - click the Browse icon next to each dimension to select accounts. The accounts selected here is where CTA will be posted.

See Also: Currency Type

How to Setup CTA Sets in Consolidation

Specify Target Balance Sheet and Income Statement CTA Account Sets in Consolidation.

1. Access the Consolidation Control Panel.

2. Click the Consolidation Setup link under the Administration pane.

3. Specify CTA account sets defined on the CTA Set page.

Hierarchy Setup in the Maintenance Menu

Access the Hierarchy Management page by navigating to Maintenance > Hierarchy > Hierarchy Management to configure reporting currency to calculate the currency and cash flow conversions with CTA Sets. Access your Financial hierarchy and your Reporting Currency Dimension / Hierarchy.

This is also where you can overwrite the default target CTA. You might do this when you determine the impact of each account on the total CTA ( and you want to post CTA calculated on a selected set of accounts to a different set of target accounts.

When you create a CTA Set, you define the following:

• Source accounts on which CTA needs to be calculated

• Target account to which CTA needs to be posted - you can overwrite these accounts for a reporting currency member in hierarchy management.

• Base rate to calculate the CTA on the Source accounts

In the example below, a reporting member has been created called Constant Dollar Currency. Notice the checkbox selection called Overwrite default CTA. Select this checkbox to overwrite the default CTA target posting accounts.

Once Overwrite default CTA is selected, CTA Sets is enabled in the lower portion of the pane as shown above. Click Add Sets or Manage to add sets defined on the CTA Sets page or manage existing sets. The options are shown in the image below.

Once you click Add Sets or Manage, the CTA Sets page is enabled (as shown above). On this page you can search for and map CTA Sets. Click Save to commit selected CTA Sets.

Now, when you run the Consolidation Process on the Cf currency reporting member, the CTA calculation will be performed on the accounts specified here (2 source accounts that belong to Cash Equivalent CTA Set) and posted to the Target CTA account mapped for each specific CTA Set (under Target CTA Setup).

Reporting Currency

What is Reporting Currency and Why is it Important

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.

   Set Up the Reporting Currency Member:

8. 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 newly added 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.

2. 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.

   

3. 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.

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.

1. Set up a reporting currency using the Segment Hierarchies page (steps provided above).

   

2. Select the hierarchy and click Add to select Rollup Node and Rollup Member.

   

3. Enter a name for the member and click OK. In this case, the new member is named AAMCO.

   

4. Select AAMCO in the hierarchy and click Add.

5. Select Leaf Node - Leaf Member and click Add.

   

6. Enter a name and code and select segment properties.

   1. Select the Currency Type which is YTD. This was set up on the Currency Type screen (Maintenance > Currency > Currency Setup).

      

   2. Select Yes for Currency Exception.

   3. Click Save.

7. Access the Currency Exception page by navigating to Maintenance > Currency > Currency Exception.

8. Select the AAMCO Reporting currency as shown below.

   

9. Click Add. Select the company for which you want to define the exception for and click Add.

   

10. Select the Currency Exception for the Dallas Distribution Center company.

11. Click Copy To to map all of the P & L accounts to the company (in this example it is the Dallas Distribution Center). Click Save once all account are mapped.

    

12. Load exchange rates to convert the currency as needed for a selected scenario and year.

13. Run the Consolidation Process on that scenario to update all of the exchange rates.

14. In reporting, select the new Reporting Currency. The result will be that all P&L accounts will be translated on a YTD basis.

Entity Currency

How to Use Entity Currency

Use Entity Currency to generate cash flow reports in local currency.

How to Add an Entity Currency to a Reporting Member

Complete the following steps to post a local currency to a reporting member in the Reporting Hierarchy.

1. Navigate to Maintenance > Hierarchy > Hierarchy Management.

2. Select Finance Hierarchies as Type, then select Reporting for both Dimension and Hierarchy.

3. Click Show. Select the Reporting Currency node you want to apply an Entity Currency to.

4. From the Segment Properties section of the Properties pane, expand Currency Code, select Entity Currency as the Currency Code, then click Save.

5. Click Save to save the changes. The entity currency can now be used as a reporting currency when you run your reports.

When the reporting member is added to a Dynamic Report, the Entity Currency is displayed.

Additionally, the following options are also available in the Segment Properties section:

• Do Not Consider Opening Balance—Select if you want YTD values calculated in the first period to exclude the opening balance of the previous period.

• Do Not Consider CC Data—Select if you do not want the common currency value to be converted and reported in local currency.