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.
A |
B |
C |
D |
|
---|---|---|---|---|
1 |
CATEGORY |
Forecast |
||
2 |
VERSION |
ForecastQ1 |
||
3 |
ACCOUNT | ORGANIZATION | ||
4 |
Expenses |
|
$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 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.