Currency Types
Configuration and maintenance of currencies and currency rates is important in a multi-company, multi-currency scenario with consolidation. The built-in functionality in the Bizview datastore is heavily dependent on these settings. But, there are also other scenarios where the Bizview functionality can be used. For example, if sales data needs to be translated from one currency to another.
Note: Before configuring currencies on a client level, available currency codes and currency pairs must be defined in System Administration. Additionally, before currency rates can be entered and used, you must first define at least one currency type and planning version.
Different currency rates can be used in different scenarios, and for different types of calculations. Currency types define the different types of currency exchange rates. In a consolidation scenario, you normally want to use two different currency types; one for balance sheet accounts, and one for profit and loss accounts. This is due to the fact that the calculation of currency conversion should work differently for balance sheet accounts vs. revenue and cost accounts.
Access Currency Types by selecting Client Data > Currencies > Currency Types:
The Currency Types page displays, as shown below:
Edit an existing currency type by directly typing in the field or utilizing the drop-down menus. Don't forget to select Save!
To create a new currency type, select Add and enter the appropriate information according to the table below.
Below is a list of Currency Type fields:
Field | Description | Example | Note |
|---|---|---|---|
ID | The unique identifier for the currency type. | PL | |
Description | The description of the currency type. | P&L Currency type | |
| Active | Defines if the currency type is active in the system. | ||
Calculation Method | Defines which currency rate should be used when calculating currency conversion using the built-in consolidation functionality | 0 Period Currency Rate | See additional information below |
Default Timeunit ID Available from Bizview 7.2 | Connects a default timeunit to the type to make the registration of currency rates easier. | ISOMONTH |
When you're finished completing the above fields, don't forget to select Save!
Additional Information
The calculation method is used by the built-in consolidation and currency conversion functionality in the Bizview datastore. Below is a description of these different calculation methods:
Period Currency Rate: Each general ledger transaction local amount is converted into the selected currency based on the object pair cross-rate during the month when the transaction occurred. Period Currency Rate is normally used for profit and loss accounts. For example, each transaction is valued according to the currency rate in the actual period.
Specific Period Currency Rate: Each general ledger transaction local amount is converted into the selected currency based on the object pair cross-rate for a specific selected period. Specific Period Currency Rate is normally used for balance sheet accounts. For example, each transaction is valued based on the currency rate for a specific period, normally the period when the report is executed.