Average rate

The average rate (A) is the YTD average rate of a certain period. Profit and loss accounts usually use this rate type.

You can import either the average rate (A) or the periodic average rate (PA) in a single load.

Note: To prevent the calculation of an ambiguous, double-written average rate, you can't import both rate types in the same load.

The average rate (A) is stored in the TRATES cube and produced in one of these ways:

  • During the import of the periodic average rate (PA ) from the Integration table to Financial Consolidation, the rate is converted into the YTD average rate and written into the TRATES cube. The average rate's value is calculated based on the value of the periodic average rate for all periods up to the target period. Therefore, the average rate on the Standard Currency Rate Maintenance page shows a different value than the periodic average rate in the ExchangeRates table from which the periodic average rate is imported to Financial Consolidation.
  • The average rate (A) is imported directly. No conversion is performed.

See Validation rules for data loads into Financial Consolidation.

Example of how the periodic average rate is converted into the average rate during import

Input:

  • Target year: 2020
  • Target period: 3
  • Start of the fiscal year: period 2 (February is period 1)
  • Number of days that are involved in each period:
    • Period 1 (February 2020): 29 days
    • Period 2 (March 2020): 31 days
    • Period 3 (April 2020): 30 days
  • Values of the PA exchange rate for these periods:
    • Period 1: 1.1
    • Period 2: 1.2
    • Period 3: 1.3

Preconditions:

  • Values for all periods, that is, values from period 1 to the target period must be available.
  • Only one value for each period must be specified.

The average rate is calculated in this way:

Average rate = ((number of days in period 1) * (value of the PA rate for period 1) + (number of days in period 2) * (value of the PA rate for period 2) +...+ (number of days in the target period) * (value of the PA rate for the target period)) / ((number of days in period 1) + (number of days in period 2) +...+ (number of days in the target period))

Based on the example input, this calculation of the average rate is performed:

Average rate = ((29*1.1) + (31*1.2) + (30*1.3)) / (29 + 31+ 30)