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How data is stored in HFM

schillit
schillit Member Posts: 44
edited Feb 22, 2010 5:54AM in Financial Consolidation
It appears to me that for an entity that has a different currency, other than the default currency (USD) in my case, that it stores data both at the entity currency value and the default currency. So, for example, I have twice as many rows in the DB as I would expect for my Argentina entity. I have rows for both the 'ARS' value dimension, and the 'USD' value dimension. Is that how the system is supposed to work? I would expect it to only store at the entity currency value, and do the translations(if necessary), as needed.
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Answers

  • when you translate data from one currency to another, it is stored.

    e.g. if it gets translated as part of a consolidation, or to produce an intercompany matching report, it is stored, so it is not needed to be translated again in the future.

    it is not directly related to the comparison of the entities currency related to the default application currency, it is more specific than that. if all the parents of that entity up to a high level parent are stored in the same currency as the entity, then it won't necessarily be translated into the application currency at the bottom base entity level. it may only be translated at a high parent level.

    hope this helps you explain the number of rows in your database and makes sense in the context.
    Willwohlman-Oracle
  • schillit
    schillit Member Posts: 44
    okay. But when I clear all data for that account, I look in the database and all the rows are gone, which is good. But when I consolidate again, the rows appear again for both entity currency(ARS) and parent currency(USD). I would think it should only be there for ARS.
  • What you said would be the case if parent entity has the same currency as base entity. Since the parent entity has a different currency then base entity, the data of the base entity get converted to parent entity currency at the base level it self before getting consolidated to the parent entity.

    Hope this helps
    Nick
    Varun Kaushal
  • 754305
    754305 Member Posts: 6
    First of all, I am not an expert but armature. Having worked on HFM, let me clarify your concern here. There are two processes that you need to be aware of - Consolidation and Translation
    Consolidation: is a process by where all base units are aggregated to a parent. Before the consolidation, Entity Currency get TRANSLATED into Parent Currency and then roll-up via other "intermediary stages" before get to the parent level [Contribution Total]. You can see this clearly if you explore the Value Dimension. Note that not all Value Dimension members store data. The intermediary stages mentioned are buckets, if you wish where Journals and IC Entries get posted and then aggregated to a parent. This process effectively providing an audit trail and is SOX compliance.

    Translation on the other hand, simply translates the Entity Currency into ALL available Application currencies and does not roll up to a parent.

    I hope this will clarify your understanding.

    BT
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