Collect company data in their own currencies and translate it according to group rules. In Fincorex® you can check the rates applied and compare entity results in a single reporting currency.
Package data in each entity's currency.
A common currency for reports and financial statements.
Rates assigned to the relevant reporting period.
Choosing the rate based on data type and group policies.
Translation according to the model configuration.
Comparing local data with reporting values.
Comparison with the impact of rate changes removed.
The impact of rate changes on group data: the difference between results at the two rates.
Comparing settlements in a single currency.
Balance sheet and income statement on translated data.
Assign rates to periods and item types. In this example, the company's EUR receivables are translated at the closing rate and revenue at the average rate.
Simplified example · illustrative rates
The company's revenue grew from EUR 3.5m to EUR 3.8m. At the comparative rate, the increase would be PLN 1.26m. The rate change added PLN 0.38m to the reported value.
The FX-netting-adjusted result is PLN 15.96m (14.70 + 1.26). The FX effect of +0.38 closes the bridge: 14.70 + 1.26 + 0.38 = PLN 16.34m.
Collect packages in the currencies the companies report in.
Apply the rate rules adopted for the group and the period.
Combine the translated data and apply eliminations and adjustments.
Drill down from the PLN amount to the company data and the rate applied. The breakdown shows each entity's share of revenue before eliminations.
Amounts submitted by the company.
The value adopted for the item and period.
Amounts in a single reporting view.
The next step after translating and reconciling the data.
Concept view · illustrative data
Check the change in sales at the comparative-period rate.
Separate the FX effect from other variances against the budget.
See which entities or currencies contribute the largest FX effect.
Yes. Each company submits its package in its own currency, and the model translates the data into the group's reporting currency.
Yes. You assign rates to item types – e.g. balance sheet items at the closing rate, and revenue and costs at the period's average rate.
It shows how much of the change in the reported value comes from exchange rate movements and how much from an actual change in results in local currency.
A constant-rate comparison separates the change in sales from the currency impact, so you can see how much of the difference comes from the rate.
Usually the rate assumed in the budget. This lets you separate the FX effect from other variances against the plan.
Company data is first translated into the group currency, and then intercompany balances and transactions are reconciled and eliminated in that same currency.
As a proof of concept, we’ll rebuild your reporting or planning model in Fincorex® and show it to you at our next meeting.
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