Simplifying scenario analysis
Use currency to house the global drivers. By using different rate sets to hold the scenarios, the consolidation, reporting, and analysis becomes easy. To set up this type of application, the volume line item can have a rate different from the rest of the P&L. In our example, this rate is $0.25, but you can specify the appropriate value for any scenario. For reporting, it is easy to compare the $0.25 rate set to the $0.28 rate set or the $0.23 rate set.