Analyzing Constant Currency

You use constant currencies as fixed exchange rates to completely remove the effect of currency fluctuations when you are calculating financial performance numbers in financial statements.

In Tax Reporting, let's consider the following scenario in order to create a constant currency analysis between the current year rate and the prior year rate.

For example, if you want to create a constant currency analysis between current year (FY21) rate and prior year (FY20) rate:

  1. Create a scenario (for example, PriorYearConstantCurrency).
  2. Copy data from FY20 - Actual into FY20 - PriorYearConstantCurrency.
  3. Copy exchange rate from FY21 - Actual into FY20 - PriorYearConstantCurrency.
  4. Run the consolidation on FY20 - PriorYearConstantCurrency to get the difference in constant currency.