Working with Multi-Currency Applications

Amit Sharma Hyperion Trainer learnhyperion.wordpress.com Oravision Oracle Online Training/Consultancy Solution aloo_a2@yahoo.com Oravision Oracle Online Training/Consultancy Solution aloo_a2@yahoo.com

Currency Conversion Applications
The Essbase currency conversion feature enables you to translate financial data from one currency into another currency. Currency conversion facilitates comparisons among countries, and enables consolidation of financial data from locations that use different currencies.

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Example #1
A company has branches in UK,US and Japan. The company records the profitability in local currency so in UK the currency is Pounds and in Japan the currency is Yen. Business users want to analyze the Sales/Profitability between these two countries. To analyze the sales between these two countries we need to convert Pounds->Yen or Yen->Pounds.

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Example #2
The below example needs financial consolidation. Before we calculate the Total Sales/COGS we need to turn Local currency(INR, Pounds) into base currency (USD)

 

 

New York (USD)

Mumbai (INR)

London (Pounds)

Total (USD)
4546  4654  4566 

Jan    

Sales COGS Margin

45634 36346 36367

345637 534534 36546456

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Currency Conversion Applications
Main Database Currency Database

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Main Database

The main database outline can contain from 3 to n dimensions

A dimension tagged as time. Tagging a dimension as time generates a dimension in the currency database that is identical to the time dimension in the main database. A dimension tagged as accounts. Tagging a dimension as accounts and assigning currency categories to its members creates a dimension in the currency database that contains members for each of the individual currency categories. Category assignment enables the application of different exchange rates to various accounts or measures. A market-related dimension tagged as country. Tagging a dimension as country and assigning currency names to individual countries creates a member in the currency database for each currency.

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Currency Database

A currency database always consists of the following three dimensions

A dimension tagged as time, which is typically the same as the dimension tagged as time in the main database. This allows the currency database to track currency fluctuations over time and to accurately convert various time slices of the main database. A dimension tagged as country, which contains the names of currencies relevant to the markets (or countries) defined in the main database. Each currency name defined in the main database must also exist in the currency database.

A dimension tagged as accounts, which enables the application of various rates to members of the dimension tagged as accounts in the main database. The categories defined for the accounts dimension in the main database are used to form the members in the accounts Structure of Currency Applications dimension of the currency database. For example, it may be necessary to convert Gross Profit and Net Profit using one category of rates, while other accounts use a different set of rates.
a) Profit and Loss b) Balance Sheet

.

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currency conversion application
• • • • • Create or open the main database outline. Prepare the main database outline for currency conversion Generate the currency database outline. Link the main and currency databases. Convert currency values. (Using Spread Sheet Reports)

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Questions??

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