Currency Conversion GuideSAP BusinessObjects Planning and Consolidation 7.5version for the Microsoft platformversion for SAP NetWeaver

Target AudienceTechnical ConsultantsSystem Administrators

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Document version: 1.1 – 08/20/2010

2010-20-08 PUBLIC 2/20

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Table of ContentsCurrency Conversion ................................................................................................................... 5

Setting up an Application ......................................................................................................... 8

Dimension Property Setup ....................................................................................................... 9

Business Rules Setup ............................................................................................................ 13

Defining Script Logic .............................................................................................................. 16

Exchange Rate Import/Update ............................................................................................... 18

Loading Financial Data .......................................................................................................... 19

Executing the Currency Translation DM Package ................................................................... 20

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Currency ConversionYou use this function to convert local currency values into one or more reporting or groupcurrencies in accordance with Generally Accepted Accounting Principles (GAAP).

Notably, you can translate the financial data reported by consolidation units into the groupcurrency of the consolidation group. The consolidation system typically collects the financial datareported by consolidation units in the local currency. You need to translate this data into thegroup currency before you can create consolidated financial statements. You use the CurrencyConversion function if the local currency of one or more consolidation units differs from the groupcurrency.

PrerequisitesThe prerequisites for running currency conversions are as follows:

The application set includes a rate application where exchange rates are stored. Youhave assigned this rate application to any application that utilizes it.

The application itself includes a currency-type dimension.

The currency-type dimension includes the properties REPORTING, whose values are Y orblank, and CURRENCY_TYPE, whose values are G for group currency, T for transactioncurrency, or L for local currency.

The entity-type dimension includes the property CURRENCY, whose values are valid inputcurrencies.

The category-type dimension must have the same properties as the category-typedimension of ApShell. Even though the system does not use these properties, theprogram checks whether they exist or not.

The account-type dimension includes the property RATETYPE, whose values are validaccounts in the rate application.

The time-type dimension includes the properties YEAR, PERIOD, TIMEID, andMONTHNUM.

The data source-type dimension is not mandatory for currency translation, but if youinclude it, the dimension must include the following properties:

o DATASRC_TYPE, whose values include the following:

I – Input

M – Manual Adjustment

A – Automatic Adjustment or Elimination

L – Data source level (use only for consolidation)

o IS_CONVERTED, whose values include the following:

N – These members are ignored in the conversion.

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Y (or blank) – These members are converted from LC into the desiredcurrency unless the members are flagged as requiring manualadjustment; these members have their currency conversions enteredmanually.

G – These members are copied from the reporting currency of theGROUP that is being translated into the currency member correspondingto the given group.

The flow-type dimension is not mandatory for currency translation, but if you include it,the dimension must include the property FLOW_TYPE.

The input currency-type dimension within the applicable rate application includes theproperty MD, whose values are M for multiply rates or D for divide rates.

The appropriate FxTrans logic file is available.

The default logic includes a call to the FxTrans logic file, if the translation is to beperformed whenever data is entered.

FeaturesThis function offers the following features:

You can carry out reference translations, and you can record translation differences. Thismakes currency-related impacts transparent, and you can ensure the accountingconsistency of the translated data (for example, the matching of retained earnings in thebalance sheet and annual net income in the income statement).

You can use different currency translation keys (for example, periodic and cumulative), oryou can refrain from doing a specific translation if individual data records are already inthe target currency.

You can group together the accounting objects to be translated (for example, FS items)as selections in various ways, for example:

o Where a selection represents exactly one combination of currency translation keyand exchange rate type.

o Where for each selection you specify exactly one specific differential accountingobject for the translation difference.

o Where the selections represent steps, which the system executes consecutively.

ActivitiesIn order to perform currency conversions in Planning and Consolidation, you must do thefollowing:

1. Set up an application to run currency conversions. See Setting up an Application [Page8].

2. Define the required dimension properties. See Dimension Property Setup [Page 9].

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3. Define the business rules that calculate currency conversions. See Business Rules Setup[Page 13].

4. Define the script logic that runs the currency conversions. See Defining Script Logic[Page 16].

5. Load exchange rates to be used for currency conversion. See Exchange RateImport/Update [Page 18].

6. Load financial data for which to execute the currency conversion. See Loading FinancialData [Page 19].

7. (Optional) Execute the currency conversion Data Manager package to run the currencyconversion manually. See Executing the Currency Translation DM Package [Page 20].

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Setting up an ApplicationBefore you can run currency conversions, you must set up a main application and an associatedRate application.

The main application is any reporting-type application. For example, a main application is aFinancial or Legal Consolidation application. The main application must reference a Rateapplication, and must contain a currency-type (type R) dimension.

Procedure1. From the application set, make sure there are at least two applications defined:

o Financial or Legal Consolidation – The main application containing all financialdata.

o Rate – A reference application containing all currency exchange rates.

2. Make sure the Rate application contains the following dimensions:

o Rate – Details the different types of rate (for example, Average and End-of-period).

o RateSrc – Stores the type of Rate value source like input or calculated rate.

o InputCurrency – Stores each applicable local currency.

o Time and Category – Can be shared by all the applications involved inconsolidation.

The Rate (Account dimension for Rate application) and RateSrc (Entitydimension for Rate application) are specific and used only by the Rateapplication.

ResultThere are two applications in the application set: the Financial (or Consolidation) application,containing all financial data, and the Rate application, containing all currency exchange rates.

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Dimension Property SetupCurrency translation can run on any type of reporting application. Before you run it, check thefollowing required dimension properties – these are mandatory for currency translation to runsuccessfully.

FeaturesThe following dimension properties are required:

Dimension Property Description

ACCOUNT RATETYPE This determines the value of thisproperty. It must be a valid member ofthe RATE account dimension, such asAVG conversion rate for average, orEND for end of period.

This value is optional.

CATEGORY CATEGORY_FOR_OPE,FX_DIFFERENCE_ONLY,FX_SOURCE_CATEGORY,OPENING_PERIOD,OPENING_YEAR,RATE_CATEGORY,RATE_PERIOD,RATE_YEAR

This must have the same properties asthe Category dimension of ApShell.

Even though the system does not usethese properties, the program checkswhether they exist or not.

ENTITY CURRENCY This indicates the local currency for thecurrent ENTITY, for example, forENTITY US, the currency is USD, forFRANCE, the currency is EUR.

The value of this property must be avalid member of input currency-typedimension.

CURRENCY CURRENCY_TYPE The currency dimension must includethe properties REPORTING, whosevalues are Y or blank, andCURRENCY_TYPE, whose values areG for group currency, R for reportingcurrency, T for transaction currency, or Lfor local currency.

For group currency, this value ismainly used for Consolidation,so for other types of reportingapplication, it can be omitted..

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Dimension Property Description

TIME YEAR This contains the year information of ID.The YEAR property allows you to filter,sort, and report based on the year. Youmust place the YEAR properties inchronological order in the file, in order forthe EVTIM function in Interface for Excelto give offsets correctly.

For example, if ID is 2009.AUG, YEAR is2009.

PERIOD This indicates which period current timebelongs to. The PERIOD property allowsyou to filter, sort, and report based onthe period.

For example, if ID is 2009.AUG, period isAUG.

TIMEID The system uses this property to lookuprates from the rate application. Thisproperty is a numerical value for currenttime.

For example, 2009.AUG, TIMEID is20090800.

This is one of the most importantproperties that are required for thecurrency translation to work.

MONTHNUM This determines the last period of theprior fiscal year. This property helps todetermine the opening period rate in therate formula. This takes the numericalvalue of month. For example, 2009.AUG,MONTHNUM is 8.

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Dimension Property Description

INPUTCURRENCY MD This indicates the relationship betweencurrent currency and the standardcurrency. It can take two values:

D – Dividend. If property MD does notexist, D is default relationship.

M – Multiple. If the rate of a currency tothe standard one is a very small number,for example Euro to USD, we can storethe amount in Euros equal to 1 USD,and mark it as M. This property can beused to improve accuracy.

For some optional dimensions, such asdata source and flow, if they do not exist,currency translation still runssuccessfully. However, if they exist, theyimpact the translation process. In thiscase, the following properties in thesedimensions are also mandatory.

DATASRC DATASRC_TYPE This determines whether the data isinput balances and their related manualadjustments. The value of I and M in theDATASRC_TYPE property means thatthey are either Input or Manualadjustment. The value of A in theDATASRC_TYPE property means thatthey are either automatic adjustment orelimination.

Only the member withDATASRC_TYPE A isconverted..

IS_CONVERTED When the IS_CONVERTED property isset to N or blank, members are ignoredin the conversion.

When set to Y, members are convertedfrom the local currency to the desiredcurrency. When set to G means that thefigures are entered directly in ReportingCurrencies and only converted to GroupCurrencies.

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Dimension Property Description

FLOW FLOW TYPE This defines the type of flow of thedimension. The FLOW_TYPE propertycan take many values, but the mostimportant is the value CLOSING. Thebusiness rule of currency translation withFORCE_CLOSING = Y makes use of it.

This dimension is needed for businessrules calculations to breakdown accountactivity or flow.

For example, some accounts, like FixedAssets, have a FLOW dimension whichcontains Opening Balances, Additions,Deletions, Transfers and EndingBalances.

Activities1. From the main (or Reporting) application, define the required dimension properties, as

described in the table above.

2. Process the dimensions.

3. Define business rules as described in Business Rules Setup [Page 13].

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Business Rules SetupThis function converts a currency value based on the RATETYPE property. Planning andConsolidation gets the AVG or END rate value from the Rate cube and calculates the requiredvalue.

FeaturesOften a financial statement needs a more complex rule for CTA calculation or sometimes aspecific account does not need to be converted. In addition, if a user has a flow-type dimension(Acctdetail), it is more complex. For this reason, this table has additional columns.

Here are the details of each column in the Currency Conversion business rule:

Column Name Length Description

Account rate type 10 The value of the RATETYPE property of the source account.

Source flow 20 The member of the source flow.

Destinationaccount 20 The ID of the destination account (or blank equals source).

Destination flow 20 The ID of the destination flow (or blank equals source).

Formula 200 Rate formula - The factor to apply to the source value.

Force closing 1 Force closing without creating a new line.

Apply to periodic 1 If Y in an Ytd application, the rate is applied to the periodicvalue.

Entity FX type 20 FX type Linked to the entity-type property FX_TYPE.

Remarks 250 A free description of the translation rule.

Account Rate Type

This is the main driving field, controlling the translation rule to apply to a given account, accordingto the value of the RATETYPE property of the account.

One RATETYPE can generate more than one translated value. This can be defined byentering more than one entry with the same RATETYPE in the business rule interface forcurrency rules.

Source Flow

This field, combined with the Account Rate Type field, completes the definition of the criteria thatdrive the applicability of a given rule. In other words, the instruction can be read as follows: “if theaccount has the RATETYPE property and the Source Flow is as defined, then apply this rule”.

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The Source Flow field can contain the following values:

A valid base level or parent member ID from the flow-type dimension

A list of members of the flow-type dimension, as defined filtering the members using avalue of the DIMLIST property (or any property whose name begins with DIMLIST).

If left blank means it will apply to all the base level members.

If Flow is not used in the application then this field is left blank.

Formula

This field can contain any arithmetic expression combining any defined rate as per the account-type dimension of the rate cube. All rates with the RATETYPE property equal to FXTRANS canbe used. In the RATE_FORMULA field, the rates must be enclosed in square brackets. Forexample, [END], [END] – [AVG].

The OPENING value of any rate can also be specified adding the prefix OPE to the rate itself. Forexample, [OPEEND] – [END] , [OPEAVG].

These OPENING rates do not need to exist in the rate cube. For example, if there is an [END]rate, the currency translation also automatically recognizes a rate called [OPEEND], which simplycorresponds to the [END] rate of the opening period (typically last period of last year).

In addition, the Formula field supports the following keywords:

[AS_IS] – Leave untouched a value already existing in the destination currency. Thiskeyword cannot be combined with other rates in the same line. The only valid exceptionis the format [AS_IS]*-1.

[COPYLC] – This copies the value of the Local currency into the reporting currency, thatis, this corresponds to applying a rate of 1 in the translation.

Destination Account

This field only supports an explicit account ID or can be left blank.

Destination Flow

This field only supports an explicit flow ID or can be left blank.

Apply to Periodic

This field must only be used in an YTD application for the cases in which the currency conversionto be performed on the periodic values and not on the YTD values.

If this field is set to Y, the engine calculates the difference between current period and priorperiod amounts, and it applies to it the rate specified in Formula field. At the end, the result isadded back to prior period’s value and written in current period.

Apply Force Closing

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This field can be set to Y to force the generation of an additional record where the member of thedestination flow is the closing balance. The closing balance member of the FLOW dimension isidentified as the member with the property FLOW_TYPE = CLOSING.

Entity FX Type

This field can be used to enforce a given set of rules to only apply to a desired set of ENTITIES. Ifthis field has a value, the rule is only applied to the entities having a matching value in a similarlynamed property (FX_TYPE) of the entity-type dimension.

Activities1. In the Admin Console, choose the applicable application, then choose Business Rules,

and then Currency Conversion rules table.

2. In the Currency Conversion rule table, delete the existing content.

3. Enter information in the Currency Conversion rule table based on the information in thetable above.

4. Choose Save without validation, and then choose Validate Currency Conversion ruletable.

We recommend that you first save and then validate so that if there are errorsduring the validation you do not lose the contents of the business rules.

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Defining Script LogicYou use this to run a new logic file currency conversion. Currency conversion typically runs bydefault when default logic runs. Currency conversion is handled by the programCURR_CONVERSION.

Procedure1. *RUN_PROGRAM CURR_CONVERSION(<parameters list>)

2. Set up the following list of attributes for relevant dimensions in addition to the requiredattributes:

Dimension Property

ACCOUNT RATETYPE

DATASRCDATASRC_TYPE (I, M, A, or L)

IS_CONVERTED (Y, G, or N)

ENTITY CURRENCY (Local currency)

FLOW FLOW_TYPE (This is used to find the closing flow)

CURRENCY CURRENCY_TYPE (Reporting, Local, or group)

TIMEID

YEAR

PERIOD

TIMEID

MONTHNUM

INPUTCURRENCY (with Rate cube) MD (indicator of multiple or divide)

The data source-type dimension is not mandatory for planning, and currency translationcan be run without it. If you choose to include a data source-type dimension in a planningcube, the attributes must be set up, as they are checked in currency conversion program.

The flow-type dimension is not mandatory for planning, and currency translation can berun without it. If you choose to include a flow-type dimension in a planning cube, theattribute needs to exist in the flow-type dimension to enable currency conversion.

ExampleThe following is an example of the script logic used in the SAP NetWeaver version:

*RUN_PROGRAM CURR_CONVERSION

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CATEGORY = %C_Category_SET%

GROUP = %GROUPS_SET%

TID_RA = %TIME_SET%

OTHER = [ENTITY=%ENTITY_SET%]

RATEENTITY = Global

*ENDRUN_PROGRAM

Global must be the valid member ID that is set in the rate entity-type dimension.

The following is an example of the script logic used in the Microsoft version:

*RUN_STORED_PROCEDURE=SPRUNCONVERSION(‘%APP%’,’%CATEGORY_SET%’,”,’GLOBAL’,’%SCOPETABLE%’,’%LOGTABLE%’)

The SPRUNCONVERSION stored procedure performs currency translation calculations using theCurrency Conversion business rules table.

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Exchange Rate Import/UpdateThe Rate application stores the exchange rates for currency conversion. You use this to loadexchange rates for doing currency conversion.

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

The source currency is derived from the property CURRENCY of the entity beingtranslated.

The rate to be applied during translation, such as END, AVG, HIST, and so on, is derivedfrom the property RATETYPE of the account being translated.

The valid rate indicators are those corresponding to an account of the rate applicationbelonging to the group FX rate.

The system does not convert any accounts with a rate type that is not a part of thecurrency conversion business rules, and, for the Microsoft version, converts all accountswith a blank rate type with a factor of 1. For the NetWeaver version, if the rate type is leftblank, the values are ignored for that account.

ActivitiesThere are several ways to upload the data to the Rate application, such as using the DataManager package Import, or to use dynamic templates to send data from the input schedule.

If EVDRE reports are used, the rate account-type dimension and input currency-type dimensioncan be set in the rows, and the time-type dimension can be set in the columns. You save theEVDRE as an input schedule to send data to the Rate application. Input schedules such as thesecan also be saved as a template in a library for sharing and reuse.

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Loading Financial DataYou use this to load the financial data for executing the currency conversion.

ProcedureAfter loading the financial data you must create a report to validate that the numbers loadedmatch those from the source system. The report shows the source data that has been loaded.

To create the report:

1. Create an EVDRE report to validate and use the RptCurrency dimension in the columns,and the Account dimension in the rows.

2. Set the parameters to show the local currency (LC) and USD together in the report.

3. Choose Expand all. Check that the LC is populated, and USD is displayed as 0.00.

4. Enter the LC value, and send data to the server to have USD and Euro calculatedautomatically. This shows converted values as the default logic includes FXTrans.lgflogic.

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Executing the Currency Translation DM PackageYou can use the Data Manager package Currency Translation to run currency conversion logicbased on a user–defined selection. This is an alternative to running currency translation in thelogic file, which can have performance issues, or as an alternative to resubmitting data afterchanging a rate value.

Procedure1. In the Action Pane, choose Home, then Data Manager, and then Run a data

management package. Select the FX Restatement package in Financial Processes, setthe parameters, and choose Finish.

2. Choose View Status to check whether the package completed successfully.

3. Choose View Details. The details of the task are shown.

4. Choose Formula log to see more details of the task, such as how many records weresubmitted and how many were successful.

ResultThe currency conversion procedure is complete.