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Just out of curiousity - why would you do the currency translation inside FDM and not in HFM? HFM is a consolidation tool that has built in currency translation functionality. It does not require any scripting in HFM to do this. FDM does not have native currency translation functionality and any solution would involve heavy customization.1 person found this helpful
You would have to do this through customization in FDM, though it will be extremely involved. You will have to try to store FX rates for the Balance sheet (End of month rates) and for the P&L accounts (Average rate or weighted average). Many companies translate the values for the P&L using the periodic consolidation method. This does not take a local currency YTD balance and multiply it by that month's P&L rate - instead it takes period 1's periodic value at the Period 1 FX rate, takes period 2's local currency value * the period 2 FX rate, etc. It then adds all periods together to get a YTD USD balance. Building that functionality into FDM (periodic consolidation), in addition to grabbing the right FX rates for each account type would be very customized.
I would push back on this requirement if possible. I struggle to see the value add if it is something that HFM can do with 15 minutes of set up versus hours of FDM customization.
Robert Cybulski, CPA
thanks a lot for the advice. the requirement above was a an inquiry about whether this can be done in FDM. I was also of the idea that this is best left for HFM to do it.
I was initially thinking of using logic accounts to do the exercise. But I think I will suggest to the stakeholders to handle this in HFM instead.
I agree with Robert that HFM is the proper place for your currency conversion. You would have a very non-standard FDM installation if you were to attempt currency conversion and it will take quite a bit of time to implement it (if possible).