Historical exchange rates

Equity, participations in related companies, and sometimes fixed assets must be translated from the functional currency into the group currency based on historical translation rates. These historical translation rates or historical rates are rates that were valid at the time when the value of a certain account was generated.

These historical rate types are available in Financial Consolidation:

  • Historical rate (H)
  • Historical rate intercompany (HI)
  • Historical rate schedule (HS)
  • Historical rate schedule and intercompany (HD)

Historical rates are entity and account-specific. That is, the rates that you specify apply only to the entities and accounts to which historical rates are assigned.

Note: You can maintain rates and the group currency balance for all historical rates only if the local currency balance is available. Otherwise, you can maintain only rates.

Historical rate

The historical rate (H) is focused on the closing balance of an account. That is, the correct historical rate is determined based on the closing balance of the current and the previous period. For periodical changes, the calculation involves the standard rate that is selected in the mass adoption function.

Historical rate intercompany

The historical rate intercompany (HI) is similar to the historical rate (H). The only addition is the recognition of individual intercompanies. That is, an account has more than one historical rate for each intercompany relation with the local value. The calculation is identical to type H and is usually used to calculate the rate for a period.

If an intercompany is the same as an entity, the intercompany values are displayed for the rate types HI and HD. The rates and the group balance can be maintained.

Historical rate schedule

The historical rate schedule (HS) is a more accurate form of historical rate. You must specify rates for each relevant movement for each period.

The total historical rate for the closing balance is calculated based on the individual movement calculation. For example, an opening balance, increases, or disposals.

Historical rate schedule and intercompany

The historical rate schedule and intercompany (HD) is the most accurate form of all historical rates. You must specify rates for each relevant movement and intercompany for each period. This method is usually used for participations in related companies.

If an intercompany is the same as an entity, the intercompany values are displayed for the rate types HI and HD. The rates and the group balance can be maintained.