Currency exchange rates are used to calculate the reporting currencies used in FPM. There are two currency rates used in FPM. The Average rate is used to convert revenue and expense accounts to the reporting currency, and the Close rate is used to convert balance sheet accounts to the reporting currency. FPM can calculate the Currency Translation Adjustment required to show the closing balance in the reporting currency.
Each company has a currency code, this is the CurrenyISOCode attribute in the FIN Company dimension. The companies trial balance is loaded in the companies local currency. Planning of the companies balance sheet, revenue and expenses are planned in the companies local currency.
The company’s local currency is converted to the reporting currency using the company’s currency code and the exchange rates. Using a single reporting currency allows for the reporting of the group’s performance in a single currency.
When the LOCAL element is selected in a report you are reporting the selected company in its local currency. Care should be taken when using the LOCAL currency across consolidated companies. To be correct the consolidated companies must have the same currency code. It is recommended that the LOCAL element is hidden in reports.
Currencies are managed at: Administration > Currency Conversion > Default Rates.
Navigate to Administration > Currency Conversion > Default Rates.
Three types of currencies need to be setup in FPM.
The Reporting Currencies are the currencies that are to be used for reporting.
The Leading Currency is the currency that all exchange rates are entered.
The Included Currencies are the currencies that exchange rates are required to translate the local currency of the company to the Reporting Currency used for reporting. At minimum, the Included Currencies must include the reporting currencies and the currencies that the companies are transacting in.
When you finish the Currency Setup walkthrough the lead currency should be EUR - Euro Member Countries. The included currencies are AUD, CHF, EUR, JPY, USD. The reporting currencies are USD and CHF.
Upload the rates from the Currency Rates.xlsx file.
Repeat the upload steps for the remaining years in the Currency Rates.xlsx file.
Nominating a different exchange rate to the default exchange rate for specific accounts is a common requirement that is catered for in Apliqo FPM. When calculating the reporting currency for the account, where there is specific exchange rate the specific rate is used, otherwise the default exchange rate is used.
Navigate to Administration > Currency Conversion > Specific Rates.
Select the Financial Year, Company and the Account that the specific rates are to be applied. Enter the monthly closing and average rate to be used for the Company and Account combination selected. All rates are entered relative to the selected company’s currency. Balance Sheet accounts use the Close exchange rate. Profit and Loss account use the Average exchange rate. Click on Apply Rates popup to apply to the General Ledger any historical changes to the rates.
Apliqo FPM can have one or more Currency Versions. The default currency version is the Actual Currency Version. To do currency sensitivity analysis between Working Planning Versions additional Currency Versions can be added. Different currency rates can be entered in the different currency versions. The currency version is then assigned to a working plan version. All currency versions are independent. Historical rates need to be updated or copied for each currency version.
Additional Currency Versions can be added to store different rates.
Currency rates can be copied from one Currency Version to another Currency Version.
To calculate the Reporting Currencies, the ACT -Actual version, FBUD - Final Budget version, and any working planning versions must have a Currency Version assigned. Click on the Version Setup button to assign a Currency Version to a Version.
For each Version, select the Currency Version to be used to calculate Reporting Currencies from the drop-down menu.
If you change the Currency Version for a working version, the Reporting Currencies for that working version needs to be recalculated to reflect the exchange rates of the new Currency Version. For the Actual version, this can be done using the Apply Rates popup. Working Plan Versions need to be resubmitted to reflect the exchange rate of the new Currency Version. The Reporting Currencies of archived versions cannot be recalculated.
A Currency Version can be deleted from Apliqo FPM. The Actual currency version cannot be deleted. A currency version that is assigned to a Version cannot be deleted. Unassign the currency version in the Version Setup popup.
Training: Loading the Trial Balance