How to Calculate Net Difference Excluding Exchange Rate Fluctuations
- by George Chen, SAP Consultant, Lynk, Inc.
- September 21, 2015
Learn how to use a new design and two Business Add-Ins (BAdIs) to dynamically change on the fly the assignment of an exchange rate to a category or period.
Reading this article, you’ll learn how to:
- Implement an ABAP Business Add-In (BAdI) to change dimension attributes at run time
- Compare currency conversion among different categories or periods on the fly, reducing data volume by eliminating interim categories
Using object-oriented ABAP SAP Business Planning and Consolidation (BPC), you can change a dimension attribute at run time to compare currency conversion at different rates in memory.
Many companies are interested in the net difference of a financial statement of different categories or of different periods, exclusive of exchange rate fluctuations over categories and time. The way to do this is to apply the same exchange rate to data of different categories or periods.
While each category is associated with the specific exchange rate of the category and the period, if you want to run a currency conversion of one category with another exchange rate of a different period or category, you have to create a few interim sets of data to save the result and compare for differences.
With the new concept that I describe, you can dynamically change on the fly the assignment of an exchange rate to a category or period. Therefore, you can continue to run a currency conversion after an exchange rate assignment is updated in memory and calculate the difference on the fly. This design saves you disk space for interim data storage and improves the performance by reducing database query time and database write time.
The Concept of Net Difference Excluding Exchange Rate Fluctuation Over Time
Consider the following scenario: You want to see a net difference of actual of 2015.07 versus budget of 2014.07. The report difference is actual (2015.07)|exchange rate (actual, 2015.07) – budget (2014.07)|exchange rate (budget, 2014.07). However, the difference is constituted with two pieces — one from the exchange rate difference R (actual, 2015.07) - R (budget, 2014.07). The other is truly the difference between actual (2015.07) and budget (2014.07). After you retrieve actual (2015.07) and budget (2014.07) from the database, you can let the SAP Enterprise Performance Management (EPM) function or local function compare actual (2015.07) and budget (2014.07) as an alternative to the ABAP solution. From a performance standpoint, a good ABAP solution is better than a good use of SAP Enterprise Performance Management (EPM) functions. However, the difference, even if it is significant, is still minimal — approximately a few seconds.
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