I'm building a model which holds revenue data. The revenue that the company receives is in a mix of US Dollars, UK Sterling and Euros, so one of my lists represents currency. There is a requirement as well to aggregate that revenue into a single "Converted Sterling" currency, which would be calculated as (Revenue in UKP) + (Revenue in USD * USD Exchange Rate) + (Revenue in EUR * EUR Exchange Rate).
I've also got a fair number of Line Items that I want to apply such a currency conversion to, some of which have their own formulae.
I really only want to write the currency conversion formula once; I don't want it included in each of the Line Items that it applies to.
How do I do that in Anaplan?
Thanks in advance.
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There are two contexts in which currency conversion applies:
So, it sounds like your challenge is the simpler one. Here are my thoughts:
Let me know if this helps!
Thanks for the quick response.
What I'm keen to do is minimise the amount of duplicated code. Perhaps I'm misunderstanding what you're suggesting, but I should probably emphasise that I have quite a few Line Items to which this currency conversion needs to apply. I don't want to have to include currency conversion calculation in the formula for each of them, because (a) it makes the formula for each Line Item more verbose and (b) the currency conversion would then be replicated in many different places, making it difficult to change if the organisation changes the way it converts currency or adds new currencies in the future.
Does this mean I need a module where the currencies are represented by Line Items, and I need a further dimension that's made up of (something that looks like) the Line Items where I want to perform currency conversion? And if so, how do I set up the data feeds into that module so that the dimensions match up with the source module?
Thanks in advance
There are lots of ways to do this, I wouldn't suggest replicating every line item.
Also, whatever the solution, the design should be built so that new currencies can be added w/o the need to open the hood. In this sense, we would not build a line item that represents a single currency (say, USD)...
A simple example involving many currencies & many line items ollows:
The above is typical for currency conversion. where things can get a little squirrelly is if Transaction Currency (beyond a single local currency per area) is needed. Not conceptually difficult, but needs to be built in a way that will ensure the model won't get too large in the long term.
The above is an example only: facts on the ground often drive a slightly different approach at each client.
Thanks again for the response.
OK, I see what you're doing here; the complication that I have is that each entity does not have a single local currency. Each entity can write business in any or all of the currencies in the model. So entity and currency have to be two different dimensions, and I think I need to add a Currency list to your step 3 and then I should be on my way, I hope. I'll try it and see how squirelly it gets :)
If the data you are working with was at the transaction level then currency can be an attribute of the (data). This typically isn't the case; even at customer level, data can often be in multiple currencies.
I've worked with revenue data (in particular) that is broken out by country/region in such a way that currency can still be an attribute (having revenue as an attribute really helps).
Currency can be a dimension. For some clients, this works fine, but the challenge is that the model tends to grow substantially when a new currency is added. (model size may or may not be a concern for you.) Another way to work with this is by using a Composite Hierarchy, where currency is at or near the bottom. For user experience, I prefer composite hierarchies. From a maintenance perspective, having currency as a separate dimension is easier.