If a model requires currency conversion, we need to enable the option and choose the currency conversion table for the model to use.
We need to enable currency conversion in the model preferences when we first create the model, because it cannot be turned on after data has been imported.
Although the currency conversion table to be used by a model must exist before the model is created, the table can still be edited to add new rows as conversion rates change, enabling us to maintain a history of previous rates.
We also need to specify the Maximum Currency Conversion Limit, which sets the number of currency conversions that can be displayed at once in tables based on the model.
When we enable currency conversion, a Rate Type column is added to the model’s Account dimension.
Each dimension member is automatically assigned a rate type of Average, Closing, or blank.
Note that the appropriate Rate Type for each member is determined by the Account Type.
Income and Expense account types require the Average rate type, and Asset and Liability account types require the Closing rate type.
For non-financial accounts or where no account type is specified, we can leave the Rate Type blank.
We also need to ensure that we specify the appropriate currency for each member of the model’s Organization dimension.
The settings we apply here affect the local currency that displays for each region when we work with our data in stories as well as the currency in which we need to supply values for that region when we import data into the model.
Finally, note that in the Version dimension of the model, we can see an entry for each public version within each model category.
Currently, only the Actual category displays, because we have not yet uploaded data into our model.
If desired, in the Rate Version column we can override the default conversion rate as specified in the conversion table and choose a named rate version, if one exists in our conversion table that can be applied to the Actual category.
For this example, we will leave the default settings.
Now that our model is set up appropriately for currency conversion, we will save it.
Next, we’ll open the currency conversion table and add some new entries.
To maintain our table, we need to enter values for each unique combination of source and target currency, valid from date, category, rate version, and rate type.
For this example, we will add new entries only for the currencies that are set as local currencies in our model, EUR to USD, and CNY to USD.
We will start by entering the source currency, using the standard 3-character currency code.
The Valid From setting indicates the date as of which the exchange rate for that combination of source and target currencies is valid.
We can manually enter the date, or choose it from the date picker.
Now we can choose the target currency, using the same codes.
Optionally, we can create entries that are specific to a particular category of values in a planning model.
Actuals, Budget, Planning, Forecast, or Rolling Forecast.
We can choose the Specific option and enter a name in the Rate Version column if we want to create a rate that is not associated with a particular category, but which is available for us to use for versions within one or more categories.
For this example, we will not apply a category or rate version.
Next, we need to specify the Rate Type, either Average or Closing For this example, all of the model’s account members require the Average Rate Type.
Finally, we will enter the actual exchange rate.
We will add one more exchange rate, for USD to CNY.
Now we will save the currency conversion table.
The table is updated.
For details on working with currency values in stories, please refer to the Plan using converted currencies video.
Thanks for watching!.