Example: Applying a Rate Version to a Forecast

This example describes how currency conversion features can help you adjust forecasts when exchange rate predictions change.

Your organization uses a currency-enabled planning model to perform planning tasks, including forecasting.

Each quarter, you and your colleagues are responsible for creating a new forecast for the year by copying the forecast from the previous quarter, updating the figures based on changing assumptions, and publishing the forecast as a new public version. Currently, you have a forecast for the year created in Q1 with the following data, displayed in the default USD currency:

	A	B	C	D
1			CATEGORY	Forecast
2			VERSION	ForecastQ1
3	ACCOUNT	ORGANIZATION
4	Expenses	World		$3 820 000
5		EU		$3 300 000
6		North America		$520 000

So far, no changes are required for the ForecastQ2 values. However, predictions about the value of the US dollar have shifted, so you need to adjust the conversion rates applied to ForecastQ2. Because you want to be able to compare the scenarios presented in each forecast, including different exchange rate assumptions, you don’t want to simply change the rates that apply to all forecasts for the year.

To do this, you can create a new rate version to apply to ForecastQ2. The ForecastQ1 version uses the default rates for the Forecast category. You can copy these rates to a new rate version for ForecastQ2 and then update the rates for Q3 and Q4.

You select Browse Currencies and choose the currency table for the model.

You select

next to the Category column header in the currency table, and select Forecast from the Filter section to show only the Forecast rates. Note that there is no Rate Version, because these are generic rates for the Forecast category.

	A	B	C	D	E	F
	Source Currency	Valid From	Target Currency	Category	Rate Version	Rate
1	USD	2017.01.01	EUR	Forecast		0.95
2	EUR	2017.01.01	USD	Forecast		1.05
3	USD	2017.03.01	EUR	Forecast		0.95
4	EUR	2017.03.01	USD	Forecast		1.05
5	USD	2017.06.01	EUR	Forecast		1
6	EUR	2017.06.01	USD	Forecast		1
7	USD	2017.09.01	EUR	Forecast		0.9
8	EUR	2017.09.01	USD	Forecast		1.11

To quickly create a new rate version, you copy and paste all of these cells below the existing data. To specify a rate version, set the Category to Specific for the first of the new cells and then select the bottom right corner of the cell and drag it to the other rate version cells to copy the value. Next, add a name in the Rate Version column, such as Q2Rate. You can then update the exchange rates for the new rate version by typing values in the Rate column, and then save the Currency table.

	A	B	C	D	E	F
	Source Currency	Valid From	Target Currency	Category	Rate Version	Rate
1	USD	2017.01.01	EUR	Forecast		0.95
2	EUR	2017.01.01	USD	Forecast		1.05
3	USD	2017.03.01	EUR	Forecast		0.95
4	EUR	2017.03.01	USD	Forecast		1.05
5	USD	2017.06.01	EUR	Forecast		1
6	EUR	2017.06.01	USD	Forecast		1
7	USD	2017.09.01	EUR	Forecast		0.9
8	EUR	2017.09.01	USD	Forecast		1.11
9	USD	2017.01.01	EUR	Specific	Q2Rate	0.95
10	EUR	2017.01.01	USD	Specific	Q2Rate	1.05
11	USD	2017.03.01	EUR	Specific	Q2Rate	0.95
12	EUR	2017.03.01	USD	Specific	Q2Rate	1.05
13	USD	2017.06.01	EUR	Specific	Q2Rate	0.9
14	EUR	2017.06.01	USD	Specific	Q2Rate	1.11
15	USD	2017.09.01	EUR	Specific	Q2Rate	0.8
16	EUR	2017.09.01	USD	Specific	Q2Rate	1.25

You can now return to the story to create a new forecast version that uses the Q2Rate exchange rates. First, the table must display local currencies. To do this, you add the Cross Calculations dimension to the table by selecting Add Measures/Dimensions under the Columns heading of the Builder pane, and choosing Cross Calculations. You then select (Manage Filters) next to the Cross Calculations dimension and choose Local Currency as well as Default Currency (USD), and select OK.
From the Tools menu, you select (Version Management) and choose (Copy) next to ForecastQ1. You name the version ForecastQ2, select Local Currency in the Change conversion list, and choose Q2Rate in the Rate Version list.

You can use the same process to continue adding new forecast versions and adjusting exchange rates as necessary. You can also apply rate versions to versions in different categories, or create currency conversions using the Calculation Editor to apply specific rate versions.