Currency Conversion Rule Does Anybody know the answer to this?

Question

Hello All-
I am trying to understand a script for currency converison planning application. I am 9.3.1 and its is a out of box application. I was going through the following script :
1st part of script is simple
FIX("Actual","FY10",jan,feb,mar,apr,may,june,july,aug,sept,oct,nov,dec,"HSP_InputValue","Final",@LEVMBRS("Accounts",0),@LEVMBRS("Entities",0),))
DATACOPY "Local" TO "USD";
DATACOPY "Local" TO "GBP";
ENDFIX ;
2nd part of script :
ELSEIF (@ISUDA("Entities","GBP") AND @ISMBR("USD"))
"Local" * "Version"->"Currency"->"Entities"->"HSP_Rate_GBP" / "Version"->"Currency"->"Entities"->"HSP_Rate_USD";
ELSEIF (@ISUDA("Entities","USD") AND @ISMBR("GBP"))
"Local" * "Version"->"Currency"->"Entities"->"HSP_Rate_USD" / "Version"->"Currency"->"Entities"->"HSP_Rate_GBP";
I am concerned about the second part where in for all the entities that has UDA GBP converts the values in USD & vice versa.
I went to the table in plnning web where we store the FX rates. At the top i can see a drop down for "To currency" which is USD, and in planning terms my guess is this is the base currency for the application? Then in row i see GBP and
in method it says "Multiply" and going forward it has all the avg and end rates stored for the Time periods. I want to know what this "Multiply" means? i retreived the rates on spreadsheet and found HSP_Rate_USD ==1. So above in the
second part of the script for USD entities and memeber GBP it divides USD rate by GBP Rate (1/ GBP rate) and i am not sure what rate we get by doing this division. I was assuming that it would take the local amonut and divide directly
with "HSP_Rate_GBP" ? For rest of the currencies as well its doing the same math. The 1 for "HSP_Rate_USD" is this a default value stored when application is created ?
Please advise!
Thanks!
Edited by: user4958421 on Mar 12, 2010 7:10 AM

Answer 1

Seems to be OK - assumptions:
- USD is your base currency ("Version"->"Currency"->"Entities"->"HSP_Rate_USD" = 1)
- exchange rates are defined as so that when you multiply them with the USD value, you receive the value in the given currency
Let's simplify the formula:
"ELSEIF (@ISUDA("Entities","GBP") AND @ISMBR("USD")) " means
If the local curreny is GBP and my reporting currency is USD
Then USD = value in "Local" currency" * exchange rate GBP
Calculation steps:
(1)
- Local" * "Version"->"Currency"->"Entities"->"HSP_Rate_GBP" / "Version"->"Currency"->"Entities"->"HSP_Rate_USD";
- and ("Version"->"Currency"->"Entities"->"HSP_Rate_USD" = 1
(2)
- Local" * "Version"->"Currency"->"Entities"->"HSP_Rate_GBP" / 1;
(3)
- Local" * "Version"->"Currency"->"Entities"->"HSP_Rate_GBP" ;
Simple or not?