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    Ayeshan Peiris
    Currency Translation in PCMCS
    Topic posted August 16, 2018 by Ayeshan PeirisSilver Medal: 2,000+ Points, tagged Allocations 
    135 Views, 2 Comments
    Title:
    Currency Translation in PCMCS
    Content:

    Hi Experts,

    Which is the best way to do a currency translation within a PCMCS application? and also please explain when it should be done, whether, before the allocation ( translating Source and allocating with translated data) or translation is done after the allocation to target? (allocating with local currency and then translate the target)

    Thank You

     

    Comment

     

    • Don Bean

      Currency can be handled a number of ways in PCM.  The reporting end output will drive how best to handle it.

      Allocation rules in PCM provide a great deal of power and breadth but they also introduce the possibility of allocating funds from one currency location across many other currency locations.  PCM allocation rules are currency blind.  For example; if allocating expenses from an entity member for a Euro region shared service center (HR or IT for example) to entities using USD or other currencies PCM will not automatically convert currency nor will it store in the source currency on the target entity.   The creates the possibility of mixing values form different currencies and will invalidate your results.

      Best practice (and the one most users follow) is to convert to a common currency before the allocation process starts and convert back to local currency only if required by reporting requirements.  Typically both conversions are done outside of PCM.

      However - there are other options:

      1- create a currency dimension, load data to the local currency, create allocation rules that always use the 'Same as Source' destination option for the currency member.  This will move funds through the allocation model and always preserve the original currency.  However this can make your database grow a great deal larger than if you had used a common currency.

      2 - create a currency dimension, load data to the local currency, load exchange rates vs a common currency, use custom calculation rules to convert to a common currency prior to any allocation executions.

      • Ayeshan Peiris

        Hi Don,

        Thanks for your response. It is so much helpful. As you mentioned, I'm currently using the Other Option's 2nd Option. (i.e. Create a currency dimension, load data to the local currency, load exchange rates vs a common currency, use custom calculation rules to convert to a common currency prior to any allocation executions.).

        Typically what we do is, We load in LKR and Reporting is done with USD. (No other currency translation is involved, Only LKR to USD). I have created more than 30+ rules and each rule contains a currency translation custom calculation before the allocation. However I wanted to do the source currency translation to entire database outline with one currency translation custom cal rule involved, but I couldn't do it as my account dimension has shared members and rule is failed due to that. can you suggest any method to do the currency translation (LKR to USD) prior allocation to entire database outline from a single custom cal rule?

        Thank You.