Currency Conversion Guide SAP BusinessObjects Planning and Consolidation 7.

5
version for the Microsoft platform version for SAP NetWeaver

Target Audience
Technical Consultants System Administrators

PUBLIC Document version: 1.1 08/20/2010

Copyright
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Table of Contents
Currency 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 Conversion
You use this function to convert local currency values into one or more reporting or group currencies in accordance with Generally Accepted Accounting Principles (GAAP). Notably, you can translate the financial data reported by consolidation units into the group currency of the consolidation group. The consolidation system typically collects the financial data reported by consolidation units in the local currency. You need to translate this data into the group currency before you can create consolidated financial statements. You use the Currency Conversion function if the local currency of one or more consolidation units differs from the group currency.

Prerequisites
The prerequisites for running currency conversions are as follows: The application set includes a rate application where exchange rates are stored. You have 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 or blank, and CURRENCY_TYPE, whose values are G for group currency, T for transaction currency, or L for local currency. The entity-type dimension includes the property CURRENCY, whose values are valid input currencies. The category-type dimension must have the same properties as the category-type dimension of ApShell. Even though the system does not use these properties, the program checks whether they exist or not. The account-type dimension includes the property RATETYPE, whose values are valid accounts in the rate application. The time-type dimension includes the properties YEAR, PERIOD, TIMEID, and MONTHNUM. The data source-type dimension is not mandatory for currency translation, but if you include 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. 2010-20-08 PUBLIC 5/20

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. 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 the property 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 be performed whenever data is entered.

Features
This function offers the following features: You can carry out reference translations, and you can record translation differences. This makes currency-related impacts transparent, and you can ensure the accounting consistency of the translated data (for example, the matching of retained earnings in the balance sheet and annual net income in the income statement). You can use different currency translation keys (for example, periodic and cumulative), or you can refrain from doing a specific translation if individual data records are already in the target currency. You can group together the accounting objects to be translated (for example, FS items) as selections in various ways, for example: o o o Where a selection represents exactly one combination of currency translation key and exchange rate type. Where for each selection you specify exactly one specific differential accounting object for the translation difference. Where the selections represent steps, which the system executes consecutively.

Activities
In order to perform currency conversions in Planning and Consolidation, you must do the following: 1. Set up an application to run currency conversions. See Setting up an Application [Page 8]. 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 Rate Import/Update [Page 18]. 6. Load financial data for which to execute the currency conversion. See Loading Financial Data [Page 19]. 7. (Optional) Execute the currency conversion Data Manager package to run the currency conversion manually. See Executing the Currency Translation DM Package [Page 20].

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Setting up an Application
Before you can run currency conversions, you must set up a main application and an associated Rate application. The main application is any reporting-type application. For example, a main application is a Financial or Legal Consolidation application. The main application must reference a Rate application, and must contain a currency-type (type R) dimension.

Procedure
1. From the application set, make sure there are at least two applications defined: o o Financial or Legal Consolidation The main application containing all financial data. Rate A reference application containing all currency exchange rates.

2. Make sure the Rate application contains the following dimensions: o o o o Rate Details the different types of rate (for example, Average and End-ofperiod). RateSrc Stores the type of Rate value source like input or calculated rate. InputCurrency Stores each applicable local currency. Time and Category Can be shared by all the applications involved in consolidation.

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

Result
There 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 Setup

Currency translation can run on any type of reporting application. Before you run it, check the following required dimension properties these are mandatory for currency translation to run successfully.

Features
The following dimension properties are required: Dimension ACCOUNT Property RATETYPE Description This determines the value of this property. It must be a valid member of the RATE account dimension, such as AVG conversion rate for average, or END 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 CURRENCY This must have the same properties as the Category dimension of ApShell. Even though the system does not use these properties, the program checks whether they exist or not.

ENTITY

This indicates 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 input currency-type dimension.

CURRENCY

CURRENCY_TYPE

The currency dimension must include the properties REPORTING, whose values are Y or blank, and CURRENCY_TYPE, whose values are G for group currency, R for reporting currency, T for transaction currency, or L for local currency.

For group currency, this value is mainly used for Consolidation, so for other types of reporting application, it can be omitted..

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Dimension TIME

Property YEAR

Description This contains the year information of ID. The YEAR property allows you to filter, sort, and report based on the year. You must place the YEAR properties in chronological order in the file, in order for the EVTIM function in Interface for Excel to give offsets correctly. For example, if ID is 2009.AUG, YEAR is 2009.

PERIOD

This indicates which period current time belongs to. The PERIOD property allows you to filter, sort, and report based on the period. For example, if ID is 2009.AUG, period is AUG.

TIMEID

The system uses this property to lookup rates from the rate application. This property is a numerical value for current time. For example, 2009.AUG, TIMEID is 20090800. This is one of the most important properties that are required for the currency translation to work.

MONTHNUM

This determines the last period of the prior fiscal year. This property helps to determine the opening period rate in the rate formula. This takes the numerical value of month. For example, 2009.AUG, MONTHNUM is 8.

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Dimension INPUTCURRENCY

Property MD

Description This indicates the relationship between current currency and the standard currency. It can take two values: D Dividend. If property MD does not exist, D is default relationship. M Multiple. If the rate of a currency to the standard one is a very small number, for example Euro to USD, we can store the amount in Euros equal to 1 USD, and mark it as M. This property can be used to improve accuracy. For some optional dimensions, such as data source and flow, if they do not exist, currency translation still runs successfully. However, if they exist, they impact the translation process. In this case, the following properties in these dimensions are also mandatory.

DATASRC

DATASRC_TYPE

This determines whether the data is input balances and their related manual adjustments. The value of I and M in the DATASRC_TYPE property means that they are either Input or Manual adjustment. The value of A in the DATASRC_TYPE property means that they are either automatic adjustment or elimination.

Only the member with DATASRC_TYPE A is converted.. IS_CONVERTED When the IS_CONVERTED property is set to N or blank, members are ignored in the conversion. When set to Y, members are converted from the local currency to the desired currency. When set to G means that the figures are entered directly in Reporting Currencies and only converted to Group Currencies.

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Dimension FLOW

Property FLOW TYPE

Description This defines the type of flow of the dimension. The FLOW_TYPE property can take many values, but the most important is the value CLOSING. The business rule of currency translation with FORCE_CLOSING = Y makes use of it. This dimension is needed for business rules calculations to breakdown account activity or flow. For example, some accounts, like Fixed Assets, have a FLOW dimension which contains Opening Balances, Additions, Deletions, Transfers and Ending Balances.

Activities
1. 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 Setup

This function converts a currency value based on the RATETYPE property. Planning and Consolidation gets the AVG or END rate value from the Rate cube and calculates the required value.

Features
Often a financial statement needs a more complex rule for CTA calculation or sometimes a specific 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 Account rate type Source flow Destination account Destination flow Formula Force closing Apply to periodic Entity FX type Remarks Account Rate Type This is the main driving field, controlling the translation rule to apply to a given account, according to the value of the RATETYPE property of the account. Length 10 20 20 20 200 1 1 20 250 Description The value of the RATETYPE property of the source account. The member of the source flow. The ID of the destination account (or blank equals source). The ID of the destination flow (or blank equals source). Rate formula - The factor to apply to the source value. Force closing without creating a new line. If Y in an Ytd application, the rate is applied to the periodic value. FX type Linked to the entity-type property FX_TYPE. A free description of the translation rule.

One RATETYPE can generate more than one translated value. This can be defined by entering more than one entry with the same RATETYPE in the business rule interface for currency rules. Source Flow This field, combined with the Account Rate Type field, completes the definition of the criteria that drive the applicability of a given rule. In other words, the instruction can be read as follows: if the account 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 a value 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 accounttype dimension of the rate cube. All rates with the RATETYPE property equal to FXTRANS can be used. In the RATE_FORMULA field, the rates must be enclosed in square brackets. For example, [END], [END] [AVG]. The OPENING value of any rate can also be specified adding the prefix OPE to the rate itself. For example, [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 simply corresponds 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. This keyword cannot be combined with other rates in the same line. The only valid exception is the format [AS_IS]*-1. [COPYLC] This copies the value of the Local currency into the reporting currency, that is, 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 conversion to 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 prior period amounts, and it applies to it the rate specified in Formula field. At the end, the result is added back to prior periods 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 the destination flow is the closing balance. The closing balance member of the FLOW dimension is identified 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. If this field has a value, the rule is only applied to the entities having a matching value in a similarly named property (FX_TYPE) of the entity-type dimension.

Activities
1. 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 the table above. 4. Choose Save without validation, and then choose Validate Currency Conversion rule table.

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

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Defining Script Logic

You use this to run a new logic file currency conversion. Currency conversion typically runs by default when default logic runs. Currency conversion is handled by the program CURR_CONVERSION.

Procedure
1. *RUN_PROGRAM CURR_CONVERSION(<parameters list>) 2. Set up the following list of attributes for relevant dimensions in addition to the required attributes: Dimension ACCOUNT DATASRC IS_CONVERTED (Y, G, or N) ENTITY FLOW CURRENCY CURRENCY (Local currency) FLOW_TYPE (This is used to find the closing flow) CURRENCY_TYPE (Reporting, Local, or group) YEAR PERIOD TIMEID TIMEID MONTHNUM INPUTCURRENCY (with Rate cube) MD (indicator of multiple or divide) Property RATETYPE DATASRC_TYPE (I, M, A, or L)

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

Example
The 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 the Currency Conversion business rules table.

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Exchange Rate Import/Update

The Rate application stores the exchange rates for currency conversion. You use this to load exchange rates for doing currency conversion.

Features
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 END, AVG, HIST, and so on, is derived from the property RATETYPE of the account being translated. The valid rate indicators are those corresponding to an account of the rate application belonging to the group FX rate. The system does not convert any accounts with a rate type that is not a part of the currency conversion business rules, and, for the Microsoft version, converts all accounts with a blank rate type with a factor of 1. For the NetWeaver version, if the rate type is left blank, the values are ignored for that account.

Activities
There are several ways to upload the data to the Rate application, such as using the Data Manager 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 dimension can be set in the rows, and the time-type dimension can be set in the columns. You save the EVDRE as an input schedule to send data to the Rate application. Input schedules such as these can also be saved as a template in a library for sharing and reuse.

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Loading Financial Data

You use this to load the financial data for executing the currency conversion.

Procedure
After loading the financial data you must create a report to validate that the numbers loaded match 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 calculated automatically. This shows converted values as the default logic includes FXTrans.lgf logic.

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Executing the Currency Translation DM Package

You can use the Data Manager package Currency Translation to run currency conversion logic based on a userdefined selection. This is an alternative to running currency translation in the logic file, which can have performance issues, or as an alternative to resubmitting data after changing a rate value.

Procedure
1. In the Action Pane, choose Home, then Data Manager, and then Run a data management package. Select the FX Restatement package in Financial Processes, set the 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 were submitted and how many were successful.

Result
The currency conversion procedure is complete.

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