Simulating Currency Translation

Objectives

After completing this lesson, you will be able to:

  • Simulate currency translation

Simulate 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.

Step 1: Create the X00 Exchange Rate Special Version in X00 Extension Version

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

Step 2: Record the 12.2021 Exchange Rates with the AVG2 and CLO2 Exchange Rate Types for 12.2022

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

Step 3 and 4: Map Exchange Rate Indicator A to AVG2 and C to CLO2 for Special Version X00

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.

Step 5: Run Currency Translation for Version X00 in 12.2022

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.

Step 6: Report on the Results

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.

Configure and Run Currency Simulation

Task 1: Configure Currency Simulation

Business Scenario

At ABC Corporation, you need to translate 12.2022 financial values with different exchange rates in a simulation scenario. You’ve already added an exchange special version X## to your X## extension version. Now, you need to assign exchange rate indicators to your special version.

What skills will you develop in this practice exercise?

  • Set your global parameters to version X##
  • Map the average exchange rate indicator to the AVG2 exchange rate type
  • Map the closing exchange rate indicator to the CLO2 exchange rate type
  • Set your global parameters back to version U##

Task 2: Run Currency Simulation

Business Scenario

At ABC Corporation, you need to translate 12.2022 financial values with different exchange rates in a simulation scenario. Now that you've assigned exchange rate indicators to your special version, you can run the simulation.

What skills will you develop in this practice exercise?

  • Run currency translation
  • Review the results of the simulation

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