Entering Historical Rates

In this function you can register historical rates as fixed values in two selected currencies, often in the local currency and group currency, to calculate a fixed historical rate.

The register is used to provide historical values in converted currency for movement accounts, for example accounts for the issue of new shares, or for some other account that requires a historical rate. The historical values are entered for each new period and actuality that will be used. Alternatively, you can use Group/Copy/Historical Rates Between Periods to copy the historical values from one period and actuality to another.

  • Currency translation is performed from local currency to all currencies included in the chosen consolidation structure. To keep the relation of historical rates all the way up in the consolidation structure, you have to enter historical rates for all group and sub-group currencies in the structure. You may have to add several records for the same item. Currencies not entered in the register of historical rates will be converted from local currency using closing or average rates. If the company is connected to more than one consolidation structure, you must enter historical rates for these currencies as well. Be aware of the fact that a very detailed set up of historical rates (for example historical rates on extended dimensions or on journal numbers) will make the analysis of converted amounts more complicated. On the other hand, when you enter historical rates for G coded accounts it is important to enter historical rates at the appropriate detailed level.
  • It is possible to enter historical rates directly when entering company journals.

Currency Translation Codes E, F, and G

You must define accounts, which you want to convert into historical values according to the register of historical rates, with currency translation codes E, F or G using the Define Accounts function. These accounts appear automatically when you state for which company you want to register historical rates. If you select a specific form, only accounts with currency translation codes E, F or G that are included in this form will be displayed.

For more information, see Currency Translation Codes for Accounts.

Period and Actuality

All historical rates are stored by period and actuality, which means that you can go back to an old period and locate the exact values that were used during the currency translation.

Store by Specific Periods and Actualities

It is possible to let all historical rates be stored in one period and actuality. In these instances you must define the period and actuality in the general configuration on the Conversion tab.

For more information, see Define General Configuration - the Translation Tab.

Extended Dimensions

If an account divided into extended dimensions is going to use the same historical rate for all extended dimensions, no information is registered at extended dimension level in the register of historical rates. If, however, the extended dimensions are going to use different historical rates, the ratio of rates must be registered at extended dimension level.

Counter Company

If you register historical rates for specific counter companies, the rate will only be used for currency translation of values registered to that counter company. For other companies, the closing or average rates will be used.

Journal Type

If you register historical rates for specific journal types, the historical value will only be used for the currency translation of values registered to that journal type. Other journal types will be converted at the closing or average rates. If you want the historical value to apply to all journal types, the All Journal Types check box must be selected. The check box is selected by default.

Note: If a historical value in a company journal is entered via the Data Entry/Company Journalsmenu, this historical value can still be changed.

Journal Number

If you register historical rates for specific journal numbers, the rate will only be used for currency translation of values registered to that journal number. Other journal numbers will be converted at the closing or average rates.

Example: Use Different Historical Rates

The following is an example of how to use different historical rates for different extended dimensions: The first row defines what rates to be used if the Product (Extended Dim 1) is P1. The second row defines what rates to be used if the Market (Extended Dim 2) is M1. In cases like this a third row has to be added, defining what rates to be used if the Product is P1 and the Market is M1. If this third row is not added all transactions on that combination will be converted to B, M, or according to rules for currency translation code D.

Table 1. Example using different historical rates for different extended dimensions
Account Product Market Ext Dim 3 Ext Dim 4 SEK DEM
E2001 P1       10 100
E2001   M1     10 115
E2001 P1 M1     10 105