Understanding Period Average Fx Rate

The imputed period average fx rate can be automatically calculated for entities. The automated calculation of the imputed period fx rate is the result of the following setting:

• The Use Imputed FX Rate system attribute

The imputed period average fx rate can be overridden for entities.

The imputed period average fx rate will be used by the system to perform foreign currency translation unless any of the following two conditions are met:

• Override Period Average FX rate amount NE 0
• Use Imputed FX Rate = "FALSE"
  • The Override Period Average FX rate will always be used in this case

This section explains how this setting, along with other factors, determines the period average fx rate.

Viewing the period average fx rate

The following account stores the imputed period average fx rate:

• RPerTaxImp - FX Rate - Period Average - Imputed

The following account stores the override period average fx rate:

• RPerTaxOver - FX Rate - Period Average - Override

The following account stores the period average fx rate used by the system:

• RPerTax - FX Rate - Period Average

Understanding period average fx rate setting

You can automatically calculate the imputed period average fx rate using the Use Imputed FX Rate system attribute.

Use Imputed FX Rate system attribute

The Use Imputed FX Rate setting must be set to TRUE to calculate the imputed period fx rate. If this setting is set to FALSE, the imputed period average fx rate is not calculated. In this situation, the override period average fx rate must be input.

You can set the Use Imputed FX Rate system setting using Application Administrator.

Understanding override period average fx rate

You can view the imputed period average fx rate and input the override the imputed period average fx rate in the following input apps:

For Current Period:

• XCCC100 - FX Rates - Period Average

For Return Period:

• XCCC101 - Return FX Rates

You can view the imputed and override period average fx rates in the following input reports:

For Current Period:

• XCCC100 - FX Rates - Period Average

For Return Period:

• XCCC101 - Return FX Rates

Understanding period average fx rate calculation formulas

This section describes how the period average fx rate calculations use the Use Imputed FX rate settings to calculate the period average fx rate that the system uses to perform foreign currency translation.

The format used in the formulas is Account Name@Currency.

Imputed Period Average FX Rate formula

The Period Average FX Rate Calculation calculates the imputed period average fx rate.

The formula for the imputed period average fx rate is:

RPerTaxImp@Translation Rate = NIBT@Reporting Currency divided by NIBT@Functional Currency

Period Average FX Rate formula

The Period Average FX Rate Override Calculation populates the period average fx rate with the either the imputed rate or the override rate. The formula for the period average fx rate is: