Translating currency

SAP Analytics Cloud analytic models can easily handle most currency scenarios without a separate currency dimension by using the model and story currency conversion measures.

Using the currency features in SAP Analytics Cloud, you can display the model currencies, calculate any other currency, translate on the fly, and have a constant currency comparison.

In the example above, the model is set up with the followingmodel structure structure:

• Account
• Entity
• Time
• Local Amount
• Group Amount

The dimensional currency settings would include:

• an entity with currency property
• an account with rate type and currency unit property

Note

New Model users can enable a currency variable in the model preferences to set a default target currency for conversions measures.

Currency tables can be updated using the following methods:

• Flat files
• BPC rate models
• BW queries

Currency results:

1. The local currency property value for Store02 is EUR.
2. The local currency is EUR. This value is stored in the database.
3. Group currency is USD. This value is stored in the database.
4. Alternative currency is calculated but not stored. This is a model ‘currency conversion measure’.
5. Simulated currency is a story calculated measure.

In the example below, the new model is used.

Note

Displaying the local currency (property) in the columns is optional.

In order to create a converted measure in the story:

1. Add a measure for currency conversion.
2. Name the new column.
3. Select the target currency: either fixed or based on the entity currency.
4. Select a category either dynamically, or fixed to actual or plan.
5. Choose the source measure.
6. Select the date to determine the exchange rate.

Note

The Booking Date, for example, is determined through the date dimension (specified in the currency setting) in the model.

If a currency conversion is added and there are no exchange rates, the system will direct you to the currency table (to add the missing rates).

Currency conversion tables are defined independently of models. You can apply a selected table to any model you create. Currency tables are listed on a separate Currency Conversion page, where you can add, copy, and delete currency tables as required.

In the example above, note the following:

1. CAD values will be translated to EUR values at an exchange rate of 0.65 for accounts that have the Average rate type for postings that occur on 2020.01.01 or later.
2. Category: use this to assign exchange rates to specific categories such as actual or plan.
3. Rate version: use this for optimistic or pessimistic scenarios, for example. Use a category value = Specific to use rate version.
4. Rate type: these are assigned to accounts. Income statement accounts use Average and balance sheet accounts use Closing.
5. Check the conversion error log, if needed.

You can visit SAP Help for more information on currency conversion tables https://help.sap.com/viewer/00f68c2e08b941f081002fd3691d86a7/release/en-US/9348d55977e94994ab27bf031389d8f2.html

Enable currency conversion from the model preferences using the following steps:

1. Activate Currency Conversion using the toggle
   • When currency conversion is activated for the model, the rate type and currency property is added to the account dimension
2. Select the source currency table using the Currency Rates Table drop down
3. Select the Date Dimension for the date determination
4. Activate the currency variable (optional) by selecting Create Currency Variable in the currency variable settings.
   • The currency variable can be used to determine the target currency dynamically when the story is opened

• One of the main use cases involves SAP Analytics Cloud models designed for SAP ERP financial data. In this case the following measures would be used:
  • Local currency amount
  • Group currency amount
  • Others if needed
  • Quantity
• Measures can also be added to the model that calculate currency values on-the-fly.

1. Use the Enable Currency toggle to enable currency translation for the dimension (this can be any dimension that has a currency property, not just organizational dimensions)
2. Change the name of the currency property (for display in the story) by selecting the pencil icon
3. LC is the local (or operating currency) of the entities, for example, a story in Canada has a local currency of CAD

Using three-character currency codes, this column identifies the source currency for data that belongs to each leaf member. The Currency column is enabled by default for the Organization dimension, and can also be added to generic dimensions.

For each converted measure in the model, a dimension (any dimension with currency enabled) is set as the currency dimension.

In the account dimension, the Rate Type attribute column appears when you switch on Currency Conversion in the model preferences.

With currency conversion switched on, set the Rate Type to Average for INC and EXP accounts, and to Closing for AST and LEQ accounts. This setting corresponds to the rate type for exchange rates in your currency table. It lets you distinguish between the average exchange rate over a period and the closing rate at the end of the period.

Only the average and closing rate types are possible. Custom rate types are not possible.

In the example below:

1. The EXP and INC (not shown) account types use the Average rate type. LEQ and AST use the Closing rate type (not shown).
2. The units & currencies property must be set to currency.

If needed, you can compare values that use exchange rates for different categories. This is useful for what-if scenarios.

The CAD value for Store 1 in the example below is 5,000,000:

• 5,000,000 CAD x .15 = 750,000 MXN
• 5,000,000 CAD x .154 = 750,000 MXN

You can see in the example below, you can perform the following steps:

1. Add account and forecast exchange rates
2. Add currency conversion in the input form for Actual
3. Add currency conversion in the input form for Forecast
4. View the results in the output

Constant currency scenario: I want to see companies annual growth in a model currency (such as USD) but I want a flat conversion rate applied so I filter out the currency conversion impact on my figures.

In the example below:

• The Default Currency (USD) values are translated with the monthly average exchange rates for 2020. For example:
  • Jan: 11,655.9 x 1.1 = 12,821.5
  • Feb: 17,302.5 x 1.15 = 19,897.9
• The USD in Constant ER (USD) values are translated with the Jan average exchange rate for 2020. For example:
  • Jan: 11,655.9 x 1.1 = 12,821.5
  • Feb: 17302.5 x 1.1 = 19,032.7