Currency exchange

The Currency Exchange module is a single comprehensive approach to handle currency conversion for all applications.

Note: The currency exchange configuration is optional for Workforce Budgeting. Workforce Budgeting reports always display labor costs in the currency of the selected entity. You must complete corresponding currency exchange configurations, if you want to allocate labor costs between entities that use different currencies, or transfer costs from Workforce Budgeting to the finance core.

The available currency conversion methods are:

Periodic average translation method enables period translation. This translation method replaces the "A" translation method from prior versions.
Closing translation method for balance sheet accounts. This translation method uses the account’s closing value.
Historical translation method enables periodic translation for specific balance sheet accounts.
No translation method is designed for statistical accounts that should not be translated.

You select the level of complexity ranging from no translation for single currency applications to supporting the complexity associated with GAAP or IFRS requirements.

Currency exchange rates are specified by currency version within the configuration set. The version dimension includes the Currency Analysis hierarchy that is used to specify additional analytical currency versions.

This section is applicable only if currency conversion has been enabled and a group currency has been specified.

If currency conversion is enabled, you must specify a currency exchange rate for each currency in each month of each year of a configuration set and of any other years used for reporting. For example, a configuration set might cover the years 2016 to 2018 but be based on the actual figures for one or more previous years. All conversions are directly between an entity’s assigned (data entry) currency and the requested currency.

Note: All available currencies are configured by your administrator. The topics that are listed provide more information about currency configuration.