Currency Translation

Currency triangulation — one set of rates, unlimited reporting currencies

Module 4Admin & Extensions20 min
📖 Tell How Currency Translation Works Triangulation uses a base currency as an intermediary — enabling translation to any reporting currency from a single set of loaded rates.
👁 Show Instructor Demo Facilitator adds a new reporting currency to the Report Currency list in real time and shows how all financial data immediately appears in the new currency.
✅ Do Add a Reporting Currency In your workspace, add a new reporting currency to the Report Currency list. Navigate to the IS Report and confirm the new currency is available.

The Triangulation Method

FX triangulation calculation example — Excel showing local currency to base USD conversion, then USD to reporting currency (GBP) using reciprocal rates
Currency triangulation mechanics — local currencies convert to a single base currency (USD), then reciprocal rates translate to any reporting currency; adding a new reporting currency requires only a list entry, no formula changes

Instead of loading rates for every possible currency pair, triangulation uses a base currency (e.g., USD) as an intermediary:

  1. Load exchange rates: all local currencies → base currency (one set of rates)
  2. System automatically calculates reciprocal rates: base currency → any local currency (1 ÷ loaded rate)
  3. Combine: local → base rate × reciprocal base → reporting rate = local → any reporting currency

Adding a New Reporting Currency

💡 It's This Simple

To add a new reporting currency: (1) add the currency to the Report Currency list, (2) give it its currency code. Done. All financial data is immediately available in that currency — no module changes, no additional rate loads.

Rate Types

Rate TypeTypical Use
Month-end rateBalance sheet accounts (snapshot at period end)
Monthly average rateMost P&L accounts (average over the period)
Historical rateEquity section accounts (locked at original transaction rate)
Statistical rateNon-financial metrics (headcount, units) — always = 1; never needs loading

Architecture

ComponentPurpose
Currency FlatList of all local currencies in the model
Report Currency dimensionCurrencies available for reporting — add/remove freely
Exchange Rate dataLoaded rates: local currency → base currency
Entity → Local Currency attributeEach leaf entity has its local currency as an attribute
GL Account → Rate Type attributeEach IS and BS account has a rate type assigned
ℹ Statistical Rate Type

The Statistical Rate Type is used for non-financial metrics like headcount and FTE counts. These always translate at a rate of 1 (no conversion needed). You don't need to load statistical rates — the system assumes 1 automatically.

← PreviousNext →