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How do I customize a Currency rule template?

Currency rules convert financial values from one currency standard to another. Many standard financial reports require currency conversion. For example, if a company has subsidiaries that are located in different countries, consolidation cannot be done unless all currencies are converted to a single standard. Alternatively, a company might relocate to a country that uses a different currency.

This procedure provides guidelines for customizing a currency rule template.

What you can do when you finish

Currency conversion rules are not run directly. Instead, currency conversion rules are performed as part of any one of the following processes:

  • A Currency Translation job

  • An Intercompany Reconciliation Rule job

  • A Consolidation Rule or Consolidation job

Prerequisites

This how-to procedure assumes that you have completed the following prerequisites:

  • You have Modeler permissions.

    For more information, see the topic Scope of permission for the Modeler role

  • You have access to an appropriate financial model for your site.

    For more information, see "Models, model sites, and model subsites" in the product help.

  • Your model includes the Currency dimension.

    For more information, see the topic About the Currency dimension.

  • Your model is linked to an appropriate Exchange Rate assumption model.

    The measure for time that is used in the Exchange Rate model must not be smaller than the Time measure that is used by the Time dimension that is in your financial model. That is, if the financial model is on a quarterly time reporting period, the Exchange Rate model must use a quarterly or yearly reporting period (but not monthly).

  • If your model uses the Flow dimension, all income statement accounts have a Flow member of NONE, and all balance sheet accounts have an associated flow type.

  • You have correct values at hand for the default currency for your model.

Customizing the Currency rule template

Use the steps in the following table to track your progress.

Step Task Topic

1.

Review the description of currency rules to gain an overview of the process.

In particular, note the differences in currency rule that might be driven by the combination of account type and flow type that is used in your model.

Currency rule template

2.

Open the model, and select the Model Properties tab. Verify that the value for Default currency for the triangulation model property matches the value that is used by the Entity currency.

Add, edit, or delete a model property

3.

Review the exchange rates that your business uses to convert different kinds of accounts. Compare these rates to the members that are available in the Exchange Rate dimension.

About the Exchange Rate dimension

4.

Review the accounts that you want to convert. For each account that you want to convert, determine the account classification and account type.

About the Account dimension

5.

Select the Business Rules tab, and then select the Currency rule set.

Not applicable

6.

Create a new rule in the Currency rule set that has the following settings:

  • Select the Use template or copy from existing rule check box.

  • Select Default Currency Rules in the Copy drop-down list. The currency rule template appears in the Rule Expressions pane.

Creating a new rule

7.

If you want to convert values in income statement accounts, locate the following SCOPE statement

SCOPE(ClassificationFilterInclude([Account], “Income statement”, “Non financial”))

Verify that the currency function that is shown in the template is the correct function for your business scenario. Then continue to step 12.

Using currency conversion functions to select exchange rate

8.

If you want to convert balance sheet accounts, and your model does not include the Flow dimension, continue to step 11.

Not applicable

9.

If your model includes the Flow dimension, locate the following #if preprocessor expression.

#if DimensionExists [Flow]

Making a rule more general with #if - #else

10.

Locate the following comment expression.

// ###################################

// ## Calculations for different Flow types

// ###################################

For each TypeFilterInclude[Flow] code grouping that follows this comment, customize the Flow member and currency rule function.

When you finish customizing Flow members and currency functions, continue to step 12.

Using SCOPE filters in consolidation and currency rules

11.

If the accounts that you want to convert are of type Balance Sheet, and your model does not include the Flow dimension, locate the following expressions.

// #######################################

// # Branch Instructions for Models Without Flow Dimension #

// #######################################

#else

SCOPE(ClassificationFilterInclude([Account], “Balance Sheet”))

Customize the currency function calculation that follows this statement to fit your business scenario.

Using currency conversion functions to select exchange rate

12.

In the Rule Grid pane, select the rule that you just completed. Validate the rule.

Validating a rule, rule set, or all rules

13.

Save the rule.

Open, close, and save a model site

14.

Deploy the rule.

Deploying rules and variables

See Also

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