Simulating Currency Translation

At ABC Corporation, the CFO wants to see the current month results translated at last year's exchange rates. This will help them understand the year-over-year change. You need to run currency translation for 12.2022 but with 12.2021 exchange rates. You want to perform this simulation with the same translation method. To perform this simulation, you'll proceed as follows:

1. Create the X00 exchange rate special version in the X00 extension version.
2. Record the 12.2021 exchange rates with the AVG2 and CLO2 exchange rate types for 12.2022.
3. Map exchange rate indicator A to AVG2 for special version X00.
4. Map exchange rate indicator C to CLO2 for special version X00.
5. Run currency translation for version X00 in 12.2022.
6. Report on the results.

In the following image, the Exchange Rate special version X00 has been created in the X00 extension version.

In the following image, the AVG2 and CLO2 exchange rates are recorded.

In the following image, the mapping for special version X00 is recorded.

Note

In configuration, you need to set your global parameters to the X00 version.

In the following image, the currency log for version U00 is displayed.

Note

Because version X00 is programmed to automatically carry out currency translation, it is only necessary to manually run this process for the referenced version, U00.

The following image shows a report with current and prior-year group currency values, both based on the same local currency.

Note

Because version X00 is programmed to automatically carry out currency translation, it’s only necessary to manually run this process for the referenced version, U00.