The aim of this page is to explain the main methods used in BW: |
Several conversion methods can be used in BW. The aim of this page is to explain the main methods used in BW: |
CAR3 - Monthly Rate
The rate CAR3 can be found in the GAR library. It is available in the sheet "Taux - Rates (Monthly)". It corresponds to average rate of the month. |
How to use it in BW ?
In the prompt enter "CAR3" in the field *Exchange rate type
C - Year-to-date Monthly Average Rate
Year-to-date Monthly Average Rate comes from BFC. It is the sum of monthly rates divided by the number of months from the beginning of the year. The Rate C can be found in the GAR library. It corresponds to the rate "MOYEN / AVERAGE" in the sheet "Taux - Rates" |
How to use it in BW ?
In the prompt enter "C" in the field *Exchange rate type
BFC Methodology
The aim is to use the same methodology as the one used in BFC
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Example
2 materials are sold in USD with the following contribution margin in local currency in Q1 2019
The rate C by month is:
In February, the contribution margin (=CTN) of the material 11365 OT MET.DRUM 225L is
= (CTN 01.2019 + CTN 02.2019) x Rate C 02.2019 - CTN 01.2019 x Rate C 01.2019
= ($ 26 560,00 + $ 13 280,00) x 1,138501 - $ 26 560,00 x 1,141686 = 11 729,54 EUR
BW is doing the calculation item by item.
In February the CTN of material code 11366 DISTIL. BULK. = ($ 557 522,40 + $ 387 991,60) x 1,138501 - $ 557 522,40 x 1,141686 = 342 157,77 EUR
The exchange rate used for the conversion of the material code 11365 is $ 13 280,00 / 11 729,54 EUR = 1,13218. It is different from the one used for the material 11366 = $ 387 991,60 / 342 157,77 EUR = 1,13395 |
How to use it in BW ?
Select a workbook with "Monthly" in is description
Keep the the Exchange rate type filled by default = C
Frequently Asked Questions
What is the difference between Rate C & Rate CAR3 ?
Let's take an example.
- In January the rate CAR3 is equal to 1,21, in February it is equal to 1,24 and in March it is equal to 1,20.
- In January the rate C is equal to the rate CAR3 but in February it is the sum of the CAR3 of January and February divided by 2 months. In March it is the sum of the rate CAR3 of January, February, March divided by 3 months.
Why do we need to use a specific workbook when we want to work with the BFC methodology ?
- When using a monthly query, BW recalculates all the items of the query with the BFC calculation methodology. It does not apply a single exchange rate but it is a complex calculation that can not be done in a standard query.
Which rate is recommended for what ?
- If you want to have the same result as BFC, you must use a query with "monthly" in its description. However the response time can be deteriorated as BW calculates the conversion rate for all items.
- By default the rate C is used in the applications FC - Create a fixed costs report & P&L Reporting (WBP). Month by month it can not be aligned with BFC but it is when you look at the full year. The response time is better than monthly queries.
- You must use the rate CAR3 if you want to have the same result as CRM Analytics Dashboard.
Are there any other rates that can be used ?
- There is a long list of rates available in BW, their definition can be found in the page Exchange rates