Currencies

Nothing lost in conversion

Foreign exchange and currency translations become issues for entities when they conduct business through a foreign operation, such as a subsidiary, associate company, branch or joint venture or where entities enter into transactions denominated in foreign currencies.

The different types of currency translations include:

  • Converting many currencies to a single currency
  • Converting a single source currency to many currencies
  • Converting many currencies to many other currencies

OLAP Office™ is fully aware of the different currency translation approaches adopted within the Microsoft Analysis Services (OLAP) environment. However, the approach adopted by OLAP Office™ is by far the most flexible and efficient approach in the Analysis Services environment.

For example, with one formula, OLAP Office™ can translate any combination of world-wide currencies into a base reporting currency, with translation taking place using either spot, forward, average or closing exchange rates. The reporting currency can in turn be translated into any other currency.

Features include:

  • Translation of income statement accounts at the average exchange rate
  • Translation of the balance sheet at the closing rate of exchange
  • Automatic calculation of “exchange differences” or “translation adjustments”
  • Retranslation of the base reporting currency into any other currency
  • Translation of any currency, including the European Monetary Unit
  • Maintenance of exchange rates for all world-wide currencies
  • Maintenance of actual, budget and forecast exchange rates and the translation of any foreign currencies using the respective rates
  • Updating an exchange rate automatically updates any calculated translations immediately
  • Translation of foreign transactions into the required base currency

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