Concept: Currencies and Exchange Rates

In Adaptive Planning, you can have many currencies. You assign currencies to levels. We refer to this assigned currency as the local currency for that level. When you enter or import data, the data represents the currency of the level.

Adaptive Planning converts the values between currencies by applying exchange rates that you load. Conversion between currencies happens:

In the level hierarchy when a parent level has a different local currency than a child level. Example: Sales
level (EUR) is a child level of Headquarters
level (USD). Adaptive Planning converts the Sales
level value to USD before contributing it to the rollup value of Headquarters
.

In reports with different currencies than the levels displayed. Example: You build a report with data for the Sales
level (EUR). Your report is for the C-level executives, so you add the USD currency to the report. Adaptive Planning translates the sales revenue from EUR to USD.

We offer these tools to help manage currency conversion: Reporting currency and translated currency.

Corporate Currency

Your corporate currency is the currency assigned to the top level of your model. This assignment happens during the initial implementation of the model. When all your levels have the same currency, you can change the currency of the top level, which automatically changes the corporate currency.

When levels have different currencies, you can't change the top-level currency until you assign all levels to the same currency. Then, you can change the currency of the top level, which automatically changes the corporate currency.

Standard Currencies

When you have international business needs, you might need to add more currencies. Example: You have a US-based business that is opening an office in India. Or, you have a European business that's planning to sell products in Mexico.

Adaptive Planning provides standard currencies with the standard currency code. You can define the decimal placement and choose whether or not to use reporting rates for the currency. After you add currencies, they're available to assign to levels in the

Level

area of

Modeling

Custom Currencies

You can also add custom currencies. Custom currencies don't have to correspond to real currencies. You can create the code, the description, and the exchange rates. Use custom currencies to:

Differentiate the same currencies in different versions. Example: You have several different contractually defined currency rates for Euros, so you can create a custom currency for each.

Analyze best and worst case scenarios impacted by exchange rates. Example: Use a custom Euro that has a favorable rate as a best case scenario, and a custom Euro that has an unfavorable rate as a worst case scenario.

Watch the video:

Exchange Rate Types

Exchange Rate Types are methods of applying exchange rates to data values. Your instance comes with these common methods:

Monthly Average
, which is the default for income statement accounts in the General Ledger account hierarchy.

End of Month
, which is the default for balance sheet accounts in the General Ledger account hierarchy.

You can add more. Example: You want to add a quarterly average rate.

You are responsible for adding the actual rates.

Reporting Currencies

We convert all your currencies to your corporate currency. Example: Your corporate currency is USD. You have CAD and EUR as well. You must load exchange rates for these currencies for each of your exchange rate types:

USD and CAD.

USD and EUR.

To convert CAD to EUR, we first convert CAD to USD, your corporate currency. Then we convert USD to EUR. Or EUR to USD, and then USD to CAD.

You can change this process for reports by making CAD or EUR or both a reporting currency. When currencies are reporting currencies, we do direct conversions. This enables a more precise exchange in your reports.

When you select this option, you must load exchange rates for all reporting currencies. Example: You make USD and CAD reporting currencies. You must load rates for these pairs for each exchange rate type:

USD to CAD.

USD to EUR.

CAD to USD.

CAD to EUR.

We recommend that you use this option sparingly because it might affect the performance of your reports.

Translated Currencies

Translated currencies is a capability that enables you to load complete data sets of actuals in a specific currency for all levels. With translated currencies, you can load your data in the local currency of each leaf level as usual. In addition, you can load the same set of data in a specified currency for all levels.

The Currencies Area of Modeling

You can access the

Currencies

page in the

Modeling

area when you have Currencies
permission. From the

Currencies

page, you have very few actions to take, but these actions have a large impact on your model. There are 3 sections:

Currencies

Exchange Rate Types

Settings

In the

Currencies

, you can:

Review the list of currencies already added to your model.

Use the green checkmarks to tell which currencies are

Default Reporting Rates

and which are

Custom

Review the

Corporate Currency

at the bottom-right of the

Currencies

section.

Edit or delete currencies,

Add either standard or custom currencies.

Link to

Levels

so that you can assign currencies to levels.

Enter exchange rates for each currency pair and type by using the link to open the

Currency Exchange Rates

sheet.

In the rows, you'll see all the exchange rate types listed for each currency pair. Use the sheet to enter actual rate values on a monthly basis. This sheet is a special sheet for users with the Currencies
permission. You can only access the sheet from the

Currencies

page in

Modeling

You can also import exchange rates using the

Import

tab in the

Integration

area.

In the

Exchange Rate Types

section, you can:

Review the types of exchange rates your model already uses.

Edit or delete the exchange rate types.

Add new exchange rate types.

After you add exchange rate types, they display in the

Exchange Rate Types

sheet, found in the

Currencies

section. You must add the actual exchange rates to the sheet. They also become available to assign to accounts.

The

Settings

section has 3 options. You can:

Set your exchange rate method.

Enable cumulative translation adjustment (CTA).

Link to the CTA system account in Account Admin when you have enabled CTA.

When you select Multiplier
as your exchange rate method, we multiply source values by exchange rates to get the value in the target currency. When you select Divisor
we divide source values by exchange rates to get the value in the target currency.

When you enable CTA, we create an account in the Equity account rollup to handle any variances created within the Equity parent account and the Assets and Liabilities parent account resulting from the presence of different exchange rate types. You can't edit or import data into this account. Once you enable the account, you can edit it's name and other settings from General Ledger account hierarchy.