Configuring Currency Translation

In our scenario, ABC Corporation has companies in various countries/regions. Each company plans their income statement in their own local currency. Find out how Jen uses currency conversion in SAP Analytics Cloud.

Currencies can be converted as and when needed, based on converted measures in models or stories. Currencies can also be converted via data actions and the results can be stored in the model.

Currency conversion use case examples include:

• Display corporate (group) and local operating currencies in stories.
• Import and plan in local currency and immediately translate to group currency.
• Translate with category-specific exchange rates.
• Import both local and group currency actual values.
• Isolate exchange rate changes with a constant currency analysis.

• Exchange rates are stored in the SAP Analytics Cloud currency translation table.
• Currency tables can be updated using:
  • Flat files
  • SAP BPC rate models
  • SAP BW queries
  • Manual data entry
• Exchange rates originate from financial institutions and are automatically or manually updated into SAP Analytics Cloud.

• Local Currency (LC) refers to the functional or operating currency of a company. For example, a company in the US uses the US dollar as its local currency but a company in Germany uses the euro.
• Group Currency refers to the corporate level currency. For example, a company in the US that has a German parent will have the euro as its group currency.
• Translation is used interchangeably with conversion.

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 add, copy, and delete currency tables as required.

In the following example, the fields in a translation table explained:

1. Source Currency: 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 2024.01.01 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. Conversion Errors: Check the drop-down to view the conversion error log, if needed.

For more information on currency conversion tables, visit Learn about Currency Conversion Tables

In the Model Preferences:

1. Activate currency conversion.
2. Select the source currency table.
3. Select the dimension for the date determination.
4. Activate the currency variable (optional).

If the currency variable is turned on, the variable can be used to determine the target currency for a translated measure (but not in a measure).

1. Enable currency translation for a dimension (this can be any dimension that has a currency property, not just organizational dimensions).
2. If needed, change the name of the currency property (for display in input forms). LC is the local (or operating currency) of the entities. For example, a store in Canada has a local currency of CAD.

Switch on Enable Currency to add a Currency column to the dimension. 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 (but not for any other dimension types).

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 property column appears when you switch on currency conversion in the model preferences.

With currency conversion switched on, you must set the Rate Type by accounts and update the Units & Currencies property:

• EXP and INC use the Average rate type.
• LEQ and AST use the Closing rate type.
• The Units & Currencies property must be set to Currency.

The setting corresponds to the rate type for exchange rates in your currency table. It lets you distinguish between the average exchange rate for a period and the closing rate at the end of the period.