Calculations for historical rates

This topic describes calculations for different types of historical rates.

For all types of historical rates, if the local currency balance and rate are specified, the group currency balance is calculated by dividing the local currency balance by the rate (Group currency balance = Local currency balance ÷ rate). Consequently, the rate is the result of this calculation: Rate = Local currency balance ÷ Group currency balance. The rate is stored in the FinCon Entity Schedules cube (TDETAIC) under the 98 - System schedule detail.

Calculations for a historical rate (H)

No other specific calculations are performed.

Calculations for a historical rate intercompany (HI)

The totals for the rate and local and group currency balances are calculated in this way:

Total of the local currency balance is a sum of local currency balances of all intercompanies (sum of LCBs).
Total of the group currency balance is a sum of group currency balances for all intercompanies (sum of GCBs).
Total of the rate is calculated by dividing the sum of local currency balances by the sum of the group currency balances (sum of LCBs ÷ sum of GCBs).

Calculations for a historical rate schedule (HS)

The totals for the rate and local and group currency balances are calculated in this way:

Total of the local currency balance is a sum of local currency balances of all intercompanies including the local currency balances of the *_NA and *_FX details:
```
Total LCB = sum of LCBs including *_NA LCB and *_FX LCB
```
Total of the rate is the result of dividing a sum of local currency balances of all intercompanies excluding the local currency balances of the *_NA and *_FX details by a sum of group currency balances of all intercompanies excluding the group currency balance of the *_NA detail and the local currency balance of the *_FX detail:
```
Total rate = (sum of LCBs excluding *_NA LCB and *_FX LCB) ÷ (Sum of GCBs excluding *_NA GCB and *_FX LCB)
```

Total of the group currency balance is the result of dividing the total of the local currency balance by the total of the rate:

Total GCB = (sum of LCBs including *_NA LCB and *_FX LCB) ÷ ((sum of LCBs excluding *_NA LCB and *_FX LCB) ÷ (Sum of GCBs excluding *_NA GCB and *_FX LCB))

Calculations for a historical rate schedule and intercompany (HD)

At the level of schedule details, the totals for the rate and local and group currency balances are calculated in this way:

Total of the local currency balance is a sum of local currency balances of all intercompanies including the local currency balances of the *_NA and *_FX details:
```
Total LCB = sum of LCBs including *_NA LCB and *_FX LCB
```
Total of the rate is the result of dividing a sum of local currency balances of all intercompanies excluding the local currency balances of the *_NA and *_FX details by a sum of group currency balances of all intercompanies excluding the group currency balance of the *_NA detail and the local currency balance of the *_FX detail:
```
Total rate = (sum of LCBs excluding *_NA LCB and *_FX LCB) ÷ (Sum of GCBs excluding *_NA GCB and *_FX LCB)
```

Total of the group currency balance is the result of dividing the total of the local currency balance by the total of the rate:

Total GCB = (sum of LCBs including *_NA LCB and *_FX LCB) ÷ ((sum of LCBs excluding *_NA LCB and *_FX LCB) ÷ (Sum of GCBs excluding *_NA GCB and *_FX LCB))

At the account level, the totals for the rate and local and group currency balances are calculated in this way:

Total of the local currency balance is a sum of local currency balances of all intercompanies (sum of LCBs).
Total of the group currency balance is a sum of group currency balances for all intercompanies (sum of GCBs).
Total of the rate is calculated by dividing the sum of local currency balances by the sum of the group currency balances (sum of LCBs ÷ sum of GCBs).

Calculation of *_NA detail's rate for HS and HD rate types

The opening balance of the local currency balance (*_OB LCB) is excluded from the calculation of the *_NA detail rate (Difference to Distribute) because of the logic of how historical exchange rates are calculated for financial schedules. The logic is based on these calculations that lead to the same result:

*_NA rate = (*_CB LCB - *_OB LCB) ÷ (*_CB GCB - *_OB GCB)

*_NA rate (excluding *_NA LCB) = sum of LCBs (excluding *_OB LCB) ÷ sum of GCBs (excluding *_OB GCB)

*_NA rate (with *_NA LCB but no *_NA GCB yet) = sum of LCBs (excluding *_OB LCB and *_NA LCB) ÷ sum of GCBs (excluding *_OB GCB, no *_NA GCB yet)

The opening balance (OB) values are explicitly subtracted from the closing balance (CB) values to isolate the net movement during a period. The net movement is represented by the *_NA detail. Having the opening balance as the numerator or denominator distorts a rate because prior period balances are incorporated and they are not part of a current period's activity.

If the local currency balance (LCB) of the *_NA schedule detail is missing, these formulas are used:

*_NA LCB = sum of LCBs (excluding *_OB LCB)

*_NA GCB = sum of GCBs (excluding *_OB GCB)

```
*_NA rate = *_NA LCB ÷ *_NA GCB
```

*_NA rate = (*_CB LCB - *_OB LCB) ÷ (*_CB GCB - *_OB GCB)

You can view the closing balance (CB) for the local and group currencies on the Entity Schedules page.

The closing balances of the local and group currencies are stored in the FinCon Entity Schedules cube (TDETAIC) under the Closing balance(*_CB) schedule detail.

If the local currency balance (LCB) of the *_NA schedule detail is specified, these formulas are used:

*_NA LCB = sum of LCBs (excluding *_OB LCB and *_NA LCB)

*_NA GCB = sum of GCBs (excluding *_OB GCB, no *_NA GCB yet)

```
*_NA rate = *_NA LCB ÷ *_NA GCB
```
The corresponding group currency balance (GCB) of the *_NA schedule detail is calculated by dividing the local currency balance (LCB) of the *_NA schedule detail by the rate (GCB = LCB ÷ rate).

*_NA rate = (*_CB LCB - *_OB LCB) ÷ (*_CB GCB - *_OB GCB)

You can view the opening balance (OB) and the closing balance (CB) for the local and group currencies on the Entity Schedules page.

The opening and closing balances of the local and group currencies are stored in the FinCon Entity Schedules cube (TDETAIC) under the Opening balance (*_OB) and Closing balance(*_CB) schedule details, respectively.