Currency Translation Rule

Currency translation applies to consolidation models to which a corresponding EXCHANGE RATE InfoProvider has been referenced.

When performing currency translation, different exchange rates such as average and period end rates, as well as formulas, are applied. A currency translation rule contains the necessary rates and logic for a unique account rate type. The account rate type must exist in the Account dimension in order to be triggered. However, you can create and name the currency translation rule first, and then assign the RATE_TYPE in the account dimension to the accounts to which it relates. When currency translation runs, it translates each account in accordance with the rules defined for the account rate type which has been assigned to that particular account.

The following list provides a summary of the environment requirements to support currency translation:

• The consolidation model must be assigned an EXCHANGE RATE InfoProvider where exchange rates are stored.

• The CONSOLIDATION InfoProvider itself must include a currency type dimension and a Group dimension.

• The Currency (R type) dimension must map to the properties:

  • REPORTING, whose values are Y or blank

  • CURRENCY_TYPE, whose values are R for Reporting Currencies, T for transaction currency, or L for local currency.

• For Consolidation models, the Group (G) dimension must include the following properties:

  • GROUP_CURRENCY, whose values are valid currencies in the previously mentioned Currency dimension

  • CURRENCY_TYPE, whose values are G for group currency or N for Non-Group related data, meaning local data

• The Entity (E type) dimension must include the property CURRENCY, whose values are valid Input_Currencies. Input currencies are valid Reporting currencies defined in the currency dimension of the EXCHANGE RATE InfoProvider.

• The Account (A type) dimension must include the property RATETYPE, values of the RATETYPE property should be names of corresponding currency translation rules.

• The Time (T type) dimension must use 0FISCPER.

• The Audit dimension must include the following properties for currency translation:

  • DATASRC_TYP, whose values include the following:

    • I – Input

    • M – Manual Adjustment

    • A – Eliminations and Adjustments

    • L – Audit level (use only for Elimination and Adjustment)

  • IS_CONVERTED, whose values include the following:

    • N – these members are ignored in the conversion

    • Y (or blank) – these members are converted from LC into the desired currency unless the members are flagged as requiring manual adjustment; these members have their currency conversions entered manually

    • G – these members are copied from the reporting currency of the group that is being translated into the currency member corresponding to the given group

    You also need to include the following properties if they are mentioned in other business rules:

  • COPEOPENING, whose values include the following:

    • N (or blank) – These members are ignored in the copy opening.

    • Y – These members will perform copy opening if it is also specified in the business rule.

  • IS_CONSL, whose values include the following:

    • N (or blank) – These members are ignored in the Elimination and Adjustment.

    • Y – These members will perform Elimination and Adjustment if it is also specified in the business rule.

  • OPENING_DATASRC, the property enables you to post data on a specific data source when running the Carry- Forward rules.

• The Flow (S type) dimension is not mandatory for currency translation, but if you include it, the dimension must include the property FLOW_TYPE.

• The InputCurrency dimension within the applicable EXCHANGE RATE InfoProvider must include the property MD, whose values are M for multiply rates or D for divide rates.

The default translation reads all values in local currency where currency = LC, applies the correct exchange rate according to the applicable EXCHANGE RATE InfoProvider, and writes the results in the appropriate reporting currency (USD, EURO, and so on).

Rate selection

For the selection of the correct rate, the following rules apply:

• The source currency is derived from the property CURRENCY of the entity being translated.

• The rate to be applied during translation, such as Endflow, Histrate, and so on, is derived from the property RATETYPE of the account being translated.

• The valid rates are those corresponding to an account of the rate model for which the value of the GROUP property is FX rate.

• The system does not convert any accounts with a rate type that is not a part of the currency translation business rules.

Preconditions for Running Currency Translation

Currency translation can run in the following two modes:

• Reporting currency mode

  Reporting currency mode converts transaction data recorded in a local currency to the specified reporting currency. To run currency translation in Reporting mode, make sure the entity member is selected in the entity hierarchy tree on the left side of the Consolidation Monitor.

• Group mode

  Group mode converts subsidiaries' data to a group's currency. This is mainly used before consolidation. To run currency translation in Reporting mode, make sure the Group member is selected in the entity hierarchy tree on the left side of the consolidation monitor.

• Some dimensions, such as Account, Entity, and Currency, must contain appropriate properties as noted in the following table:

  Model	Dimension	Property	Description
  Main	Account	RATETYPE	The value of the RATETYPE property must be the name of a currency translation rule, such as AVG, END, and ENDFLOW.
  Main	Entity	CURRENCY	The CURRENCY property denotes the local currency for the current entity. For example, for entity US, the currency is USD; for FRANCE, the currency is EUR. The value of this property must be a valid member of the InputCurrency dimension.
  Main	Currency	CURRENCY_TYPE	The CURRENCY_TYPE property specifies the currency type, and it should take the following values: L (local currency) R (reporting currency) G (group, for compatibility on migrated models only)
  Main	Group	CURRENCY_TYPE	The CURRENCY_TYPE property specifies if the member is a group/sub-group or is used to enter local data: G (Group) N (Non-Group, used for data input)

The following properties in the Audit and Flow dimensions are mandatory:

The following properties are needed in the Group dimension:

• The ENTITY property can be blank or a valid Entity ID. It is used to define the link between the group and the entity and to indicate the entity where the aggregation should be stored. (Refer to the STORE_ENTITY property below.)

• The GROUP_CURRENCY property can be used only on Group members with the property CURRENCY_TYPE= G. It must contain a valid ID from the Currency dimension with the property CURRENCY_TYPE = R.

• The STAGE_ONLY property controls the way the converted values must be saved in case of a multilevel conversion of groups. This property can have the three values Y, E, or N (blank).

• The STORE_ENTITY property can have the values Y or blank. It indicates whether the system copies the results of the currency translation for the current group into the entity specified in ENTITY property.

• The STORE_GROUP_CURR property can have the values Y or blank. It indicates whether the system stores the currency translation result in the group currency. Otherwise, the system stores the result only in Group, not in currency.

• The PARENT_GROUP property defines the group hierarchy. The value of this property should be a valid Group ID in the dimension.