Exchange Rates
Table of contents
1 Exchange Rates in IDL Konsis
As part of the consolidation of foreign currency companies, the exchange rate on the group currency is used to unify the currency unit. For this reason, exchange rates are specified in a uniform manner across the Group and therefore belong to the group of consolidated data (GRPSUBEX).
FXRTE displays the current overview of all exchange rates of all currency codes for the selected fact and submission date when it is called directly. This list can also be used as a complete verification, e.g. for the securities.
When called up via the follow-up processing from the currency conversion application (FXCN), the targeted selection are carried out immediately with the keys assigned there (currency, reference date, fact).
The conversion is commonly used:
- Closing rate: Exchange rate at the time of the balance sheet date
- Period average rate: Mathematically averaged rate of all cut-off date rates of a given period.
- Monthly average rate: Mathematically averaged rate of all cut-off rates of a monthly period.
In IDL Konsis, depending on the conversion method, either only the closing rates (no longer permitted in Germany according to the BilMoG) or the closing rates and the average rates are entered, which are used within the currency conversion for the conversion of the corresponding balance sheet and P&L accounts are used. The exchange rates shall be calculated per currency code (FXCDE) using:
- The exchange rate type
- e.g. 'D' = Exchange rate as divisor (notation since 1999), 'M' = Exchange rate as multiplier (notation before 1999)
- the temporal reference
- e.g. T=closing rate, P=currency rate average per period
- The relevant reporting date
- e.g. price based on 31/12/2019
It should be noted that the exchange rates must entered on the fact on which the conversion is to be carried out. If a conversion with identical exchange rates is to be carried out on several facts, it is possible to define a reference fact for exchange rates for each fact in the application FCT. In this way, double entry is eliminated and the exchange rates are only recorded on the reference fact.
Regardless of the exchange rates stored here, individual development transactions can be converted with individual (historical) rates. The required exchange rates must also be recorded in the respective development transaction.
2 Exchange Rates Overview (FXRTE)
2.1 Selection Options
The following mandatory entry fields in the Selection area are used to specify the courses to be displayed:
[Currency code]: Valid key, partial key+% or %.
[Fact]: Valid key, partial key+% or %; if a reference data type for exchange rates is specified for the specified fact in the FCT application, the rates specified on the reference data type are (also) displayed.
[Exchange rate reference date]: Blank or valid date.
The following Selection options are available in the extended Selection area:
[From exchange rate reference date]: Blank or valid date; in conjunction with. Exchange rate cut-off date A time interval can be specified from which all defined exchange rates are displayed.
[Exchange rate type]: Blank, % or valid key.
[Time off]: Blank or valid date.
[Language]: Language for currency descriptions in the table different from the user's standard language.
[Explanation]: Blank = all, %=all with entry, *=all without entry
2.2 Column Headers
The abbreviated column headers for display fields only mean:
Wk Art: Exchange rate type
Z: Time reference
In the Currency formula column, the formula for converting the respective currency to the group currency with the displayed rates and factors is issued to check the correct notation.
2.3 Actions
Using the context menu, you can access the following applications:
[Pen]: Edit exchange rate
[Copy]: Copy exchange rate
[Delete]: Delete exchange rate
[Quantity Copy]: Copies all previously selected exchange rates in one step to other keys, e.g. to another data type.
[WKZWKAE]: Exchange rates (individual record processing)
[Transfer of exchange rates from the ECB or SNB]: If an internet connection is available, exchange rates can be called up directly from the ECB or the SNB.
[IE JOB Control]: Branch to the Import Export Job Overview.
[Tablecells editable]: Switch editable cells directly in the table to edit mode.
3 Exchange Rate Types
3.1 Exchange Rate Type 'E' (EMS Central Rate)
The exchange rate type E primarily defines the rates that have been set as central rates within the EMS for the currencies participating in the Euro area. However, 'E' rates can also be defined for other currencies if a distinction between the reporting date and the average rate is not desired or required, e.g. the rate 0.001 for the currency 'TEU' (1000 EURO).
'E' rates are always based on the currency 'EUR', i.e. independent of the current group currency. If the group currency is not equal to 'EUR', both country and group currency 'E' rates are maintained, as the conversion is then made via 'EUR'. For the currency 'EUR' no 'E' rate has to be maintained, it would always be = 1. The 'E' exchange rates are always entered without taking into account the factor specified in the currency master number (FXCDE). Only closing rates are supported for the exchange rate type 'E'. The entry of average rates is therefore unnecessary. Although the 'E' rates are fixed, they must be maintained for each period and fact in which a conversion is to be made. An automatic carry forward is not supported.
The currency conversion is carried out using the 'E' rates according to the following formulas:
| Conversion LC -> GC (FXCDE-GC = 'EUR') | Value-GC = Value-LC (LC) |
| Conversion LC -> Value (FXCDE-LC = 'EUR') | Value-meets * 'E' rate (accepted) |
| Conversion LC -> GC (otherwise) | Value-GC = Value LC / 'E' rate(LC) * 'E' rate(GC) |
| Conversion GC -> PC (FXCDE-PC = 'EUR') | Value-PC = Value-GC / 'E' rate (GC) |
| Conversion GC -> (FXCDE-pays = 'EUR') | Value-meets = Value-meets * 'E' rate(improves) |
| Conversion GC -> PC (otherwise) | Value PC = Value GC / 'E' rate (GC) * 'E' rate(PC) |
3.2 Exchange Rate Type 'M' (Average Rate)
The exchange rate type 'M' defines the official mean exchange rates in the quotation, which was common until the introduction of the EURO. 'M' rates are always related to group currency. For the group currency itself, there is no need to maintain an 'M' rate; it would always be 1. The 'M' rates are always quoted taking into account the factor specified in the currency master (FXCDE). This is necessary in order to allow the number of significant digits after the decimal point (maximum 6) to be adequately quoted for currencies with very low values. For the exchange rate type 'M', closing rates (time reference = 'CR') and average rates (time reference = 'P') must always be used. Exception: The purely reporting-date exchange rate procedure (conversion procedure 'RST') is used.
The currency conversion is carried out using the 'M' rates according to the following formulas:
| Conversion LC -> GC | Value GC = Value LC * 'M' exchange rate (LC) / factor(LC) |
| Conversion GC -> PC | Value PC = Value GC / 'M' price (PC) * factor(PC) |
3.3 Exchange Rate Type 'D' (Reversed Mean Exchange Rate)
The exchange rate type 'D' defines the official mean exchange rates in the quotation, which has been common since the introduction of the EURO. 'D' rates are always related to group currency. For the group currency itself, there is no need to use an 'D' rate; it would always be 1. The 'D' rates are always entered without taking into account the factor specified in currency master data (FXCDE). For the exchange rate type 'D', closing rates (time reference = 'T') and average rates (time reference = 'P') must always be used. Exception: The purely reporting-date exchange rate procedure (conversion procedure 'RST') is used. In contrast to the 'M' rates, the 'D' rates do not take into account the factor from FXCDE.
Currency conversion is performed using the 'D' Rates according to the following formula:
| Conversion LC -> GC | Value GC = Value LC / 'R' Rate(LC) |
| Conversion GC -> PC | Wert-PW = Value PC = Value GC * 'R' Rate(PC) |