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.

Setting up the currencies in Apliqo FPM

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.

Click for a guided walk through.

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 Rates

Upload the rates from the Currency Rates.xlsx file.

Click for a guided walk through.

Exercise

Repeat the upload steps for the remaining years in the Currency Rates.xlsx file.

Specific Rates

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.

Next

Training: Loading the Trial Balance

More Information