SAC - currency translation for balance sheet accounts by movement type

[hugh_gledhill]

Hi all,

When applying currency conversion to Balance Sheet accounts, certain financial reporting standards require different balances & movements (or "flows") to be translated using different exchange rates. These different balances & movements are usually distinguished in a separate dimension to the account dimension. For example:

• Opening balances are typically translated at a prior year closing rate
• Movements are typically translated at a current period average rate
• Closing balances are typically translated at a current period closing rate
• Currency translation adjustments are typically calculated to account for the differences in exchange rates

Tools like SAP BPC enable this method of movement type dependent currency translation. From what I can see, there is no equivalent option in SAP Analytics Cloud. All currency conversion options, across classic account and new model type planning models, require a single rate type to be associated with a given account.

Is there a standard way of achieving this in SAC that I am missing? Or alternatively has anyone come up with creative workarounds for this requirement?

Thanks,

Hugh Gledhill

[N1kh1l]

@hugh_gledhill 

I can understand SAC does not allow custom RATETYPE. Using the new model with multiple measures I think you can achieve the same impact. You will need separate measures to hold different types of currency conversion using different rate types. In Currency Table you have to use Category as Specific and for Rate type type you can maintain the different types of rate like Ope, CLO etc. Now when you configure currency conversion data Action, Use separate measures to hold different measures to hold each of this currency translation results. Finally you can copy results from these measures to your main measures for reporting.

Please refer to the below link on how to use the specific Category and Rate Type.

https://help.sap.com/docs/SAP_ANALYTICS_CLOUD/00f68c2e08b941f081002fd3691d86a7/e48c776e2c0f4cb09cc8b...

Br.

Nikhil

[hugh_gledhill]

Hi Nikhil,

Thanks for your response. The approach you suggested basically works:

• Populate both "Average" & "Closing" in the Rate table with average rates (for a specific version, or for a specific time period)
• Reference those rates in a currency translation, which results in all accounts being translated using average rates
• Create another calculation to say something like "IF movement type = movement THEN avg currency translation ELSE normal currency translation"

The currency translation and subsequent calculation can be done using model measures or using a data action (for new model type models), or using cross calculations (for classic account models, as in our case). If using a data action to persist currency translation results, you could also calculate and post currency translation adjustments.

Bit of a painful workaround, but still a solution!

Thanks,

Hugh

[hugh_gledhill]

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