CURRENCY TRANSLATION IN BPC

When manually entering (or importing) into BPC, all the transaction data will be entered (or loaded) in
local currency (LC), which will then be converted into USD using the exchange rates maintained in the
"Rates" application.

It should be noted that the ACTUAL data coming in from BW (R/3 load) will already be converted from
LC to USD. Therefore the currency translation business rule logic will be applied to all other versions of
data such as BUDGET, FORECAST, etc.

Below are some of the pre-requisites to configure currency translation:
1. VERSION dimension: A category-type dimension called "VERSION" should be maintained with at
least the following dimension members (names of dimension members to be confirmed with
QVC):
ACTUAL Actual data
BUDGET Budget data
FORECAST Forecast data
CFX_PYR Actual transaction data at PRIOR YEAR exchange rates
CFX_BUD Actual transaction data at BUDGET exchange rates
2. "RATES" application: The currency exchange rates are maintained in the "RATES" application.
These exchange rates will be loaded into BPC from the "TCURR" table in SAP R/3 on a monthly
basis for 2 versions ACTUAL, BUDGET, CFX_PYR, and CFX_BUD. FORECAST, rates will be
maintained manually in BPC. As a minimum, the following types of rates should be maintained
(or defined) in the "RATES" application:
AVG Average Rate
CLO Closing Rate
HIST Historical Rate
3. A currency type dimension to hold input currencies (INPUTCURRENCY). This dimension will be
maintained in BPC by the BPC Administrator and loaded via the R/3 TCURR table (see point #1).
USD US Dollar
EUR Euro
GBP British Pound Sterling
JPY Japanese Yen
CNY Chinese Renminbi
4. The CURRENCY property in the COMPANY_CODE dimension to be validated against the
INPUTCURRENCY dimension.
5. In addition to the "RATETYPE" property, every account defined in the ACCOUNT dimension must
have an "ACCTYPE" (account type) property defined. BPC comes delivered with 4 account types:
INC Income accounts
EXP Expense accounts
AST Asset accounts
LEQ Liabilities & Equity accounts
All accounts must use one of the above delivered account types. Creation of customized
account types is not allowed in the BPC system.

The screenshot below shows a sample ACCOUNT dimension with the required dimensions
defined for the currency translation.






6. Business Rules & Logic Script: The business rules for currency translation are configured for
each rate type. Based on the RATETYPE property, the system determines the logic to use and
the type of exchange rate to apply for conversion.


CURRENCY TRANSLATION ILLUSTRATION

The currency translation process in BPC is illustrated for the following 4 versions and scenarios:
ACTUAL/BUDGET Read Actual data and Budget data, and translate both into USD using the ACTUAL and BUDGET exchange rates,
respectively.
CFX_PYR Read Actual data from current year, and translate them into USD using prior year's exchange rates.
CFX_BUD Read Actual data from current year, and translate them into USD using current years Budget exchange rates.

Consider the following data in the "FINANCE" application:

Account Description ACCTYPE RATETYPE ACCTYPE Amount in LC (EUR)
ACTUAL BUDGET
10010000 PETTY CASH ACCT AST CLO AST 1,000 1,100
20050020 A/P MISCELLANEOUS LEQ CLO LEQ 250 300
30250000 TREASURY STOCK LEQ HIST HIST 5,000 5,100
40000010 SALES JEWELRY INC AVG INC 100 150
60000450 BANK CHARGES EXP AVG EXP 50 60


In addition, assume that the following exchange rates are maintained in the "RATES" application for the various versions:

AVG CLO HIST
ACTUAL 1.50 2.00 1.00
BUDGET 2.00 2.50 1.10
PRIOR YEAR 2.50 2.20 1.10




After reading the data, configuration of dimensions & dimension members, related properties, business rules and logic script (see technical
specification section above for more information), the BPC system performs the currency translation and gives the following results:

Scenario 1: VERSION = ACTUAL (Actual @ ACTUAL rates, Budget @ BUDGET rate)
VERSION = ACTUAL (Actual data from R/3, Budget @ BUDGET rate)
Account Description ACCTYPE RATETYPE Amount in LC (EUR) Amount in USD Variance
ACTUAL BUDGET ACTUAL BUDGET
10010000 PETTY CASH ACCT AST CLO 1,000 1,100 2,000 2,750 750
20050020 A/P MISCELLANEOUS LEQ CLO 250 300 500 750 250
30250000 TREASURY STOCK LEQ HIST 5,000 5,100 5,000 5,610 610
40000010 SALES JEWELRY INC AVG 100 150 150 300 150
60000450 BANK CHARGES EXP AVG 50 60 75 120 45

Notes:
ACTUAL Amount in USD Already available in R/3
BUDGET Amount in USD = (BUDGET Amount in LC * BUDGET Exchange Rate)
Variance = (BUDGET Amount in USD ACTUAL Amount in USD)
Balance Sheet accounts (AST) are translated using the period end rate (CLO).
P&L accounts are translated using the average rate of the reporting period (AVG).
The Equity accounts are maintained using the historical rate (HIST).

Scenario 2: VERSION = CFX_PYR (Actual from current year @ prior year's exchange rate)
VERSION = CFX_PYR (Current Year Actual @ Prior Year rate)
Account Description ACCTYPE RATETYPE 2011 Actual 2012 Actual
Act/PYR Var
(Excl. FX)
LC USD LC USD
10010000 PETTY CASH ACCT AST CLO 1,000 2,200 1,200 2,640 440
20050020 A/P MISCELLANEOUS LEQ CLO 250 550 300 660 110
30250000 TREASURY STOCK LEQ HIST 5,000 5,500 5,500 6,050 550
40000010 SALES JEWELRY INC AVG 100 250 150 375 125
60000450 BANK CHARGES EXP AVG 50 125 60 150 25


Notes:
2011 ACTUAL Amount in LC, USD Already available in R/3
2012 ACTUAL Amount in USD = (2012 ACTUAL Amount in LC * PRIOR YEAR Exchange Rate)
Act/Bud Variance = (2012 ACTUAL Amount in USD 2012 BUDGET Amount in USD)
Balance Sheet accounts (AST) are translated using the period end rate (CLO).
P&L accounts are translated using the average rate of the reporting period (AVG).
The Equity accounts are maintained using the historical rate (HIST).

Scenario 3: VERSION = CFX_BUD (Actual from current year @ Current year's Budget rate)
VERSION = CFX_BUD (Actual Budget @ Current Year Budget rate)
Account Description ACCTYPE RATETYPE 2012 Budget 2012 Actual
Act/Bud Var
(Excl. FX)
LC USD LC USD
10010000 PETTY CASH ACCT AST CLO 1,000 2,500 1,200 3,000 500
20050020 A/P MISCELLANEOUS LEQ CLO 250 625 300 750 125
30250000 TREASURY STOCK LEQ HIST 5,000 5,500 5,500 6,050 550
40000010 SALES JEWELRY INC AVG 100 200 150 300 100
60000450 BANK CHARGES EXP AVG 50 100 60 120 20


Notes:
2011 ACTUAL Amount in LC, USD Already available in R/3
2012 ACTUAL Amount in USD = (2012 ACTUAL Amount in LC * PRIOR YEAR Exchange Rate)
Variance = (2012 ACTUAL Amount in USD 2011 ACTUAL Amount in USD)
Balance Sheet accounts (AST) are translated using the period end rate (CLO).
P&L accounts are translated using the average rate of the reporting period (AVG).
The Equity accounts are maintained using the historical rate (HIST).