Working

Workingwith
withMulti-Currency
Multi-CurrencyApplications
Applications

Amit Sharma
Hyperion Trainer
learnhyperion.wordpress.com
Oravision
Oracle
Online
Training/Consultancy
Solution
aloo_a2@yahoo.com
Oravision
Oracle
Online
Training/Consultancy
Solution
aloo_a2@yahoo.com

Currency Conversion Applications

The Essbase currency conversion feature enables you to translate
financial data from one currency into another currency. Currency
conversion facilitates comparisons among countries, and enables
consolidation of financial data from locations that use different currencies.

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Example #1
A company has branches in UK,US and Japan. The company records the
profitability in local currency so in UK the currency is Pounds and in Japan
the currency is Yen. Business users want to analyze the Sales/Profitability
between these two countries. To analyze the sales between these two
countries we need to convert Pounds->Yen or Yen->Pounds.

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Example #2
The below example needs financial consolidation. Before we calculate the Total
Sales/COGS we need to turn Local currency(INR, Pounds) into base currency (USD)

New York
(USD)

Mumbai
(INR)

London
(Pounds)

Total
(USD)

Jan

Sales

45634

345637

4546

COGS

36346

534534

4654

36367

36546456

4566

Margin

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Currency Conversion Applications

Main Database

Currency Database

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Main Database

The main database outline can contain from 3 to n dimensions

A dimension tagged as time. Tagging a dimension as time generates a dimension in the

currency database that is identical to the time dimension in the main database.
A dimension tagged as accounts. Tagging a dimension as accounts and assigning
currency categories to its members creates a dimension in the currency database
that contains members for each of the individual currency categories. Category
assignment enables the application of different exchange rates to various accounts
or measures.
A market-related dimension tagged as country. Tagging a dimension as country and
assigning currency names to individual countries creates a member in the currency
database for each currency.

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Currency Database

A currency database always consists of the following three

dimensions

A dimension tagged as time, which is typically the same as the dimension tagged as time
in the main database. This allows the currency database to track currency fluctuations over
time and to accurately convert various time slices of the main database.
A dimension tagged as country, which contains the names of currencies relevant to
the markets (or countries) defined in the main database. Each currency name defined in
the main database must also exist in the currency database.

A dimension tagged as accounts, which enables the application of various rates to members
of the dimension tagged as accounts in the main database. The categories defined for the
accounts dimension in the main database are used to form the members in the accounts
Structure of Currency Applications dimension of the currency database. For example, it may
be necessary to convert Gross Profit and Net Profit using one category of rates, while other
accounts use a different set of rates.
a) Profit and Loss b) Balance Sheet

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currency conversion application

Create or open the main database outline.

Prepare the main database outline for currency conversion
Generate the currency database outline.
Link the main and currency databases.
Convert currency values. (Using Spread Sheet Reports)

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Questions??

Download the video version of this tutorial from

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