FESA CONSOL

FlexSystem

Differing Reporting Currencies within Overseas Companies

Issues

Financial reports come from your different entities in differing currencies and therefore a lot of exchange rate data and computational rules within the spreadsheets are common place when there is no standardized reporting currency. As a result control over the amendment of exchange rate data and its associated computational rules in respect of foreign currency translation becomes an operational problem especially when the number of consolidation reports increases over time.

  

Expectations

Centralization of the storage and maintenance of exchange rate data and its associated computational rules in respect of foreign currency translation is essential to rectify the root problem caused by the duplication of data and its associated rules which are spread across a large number of spreadsheets.

  

Solutions

FESA Consol stores exchange rate data and computation rules within its central data warehouse. Exchange rate data can be classified into five operational types namely opening rate, closing rate, average rate, historical rate and composite rate. Each exchange rate type can be configured to an individual account or class of account by an administrator. In addition, the processing rules are very comprehensive allowing for foreign currency translation to be according to end user requirements.

In addition the operations are user friendly throughout the consolidation process. The headquarters can use the well regarded Excel user interface to retrieve the required financial information directly on any individual company or on consolidated basis from FESA Consol and users are no longer required to insert a lot of exchange rate data and associated computational rules into spreadsheets.

  

Benefits

Internal control over the management of exchange rate data and computation rules are improved significantly so that the management of headquarters can obtain high quality and timeliness of financial information to support their work in respect of performance management and decision making.