Currency Exchange Rates

If your organization operates in multiple countries then you need to decide on the exchange rate policy that you want to follow to convert currencies into your reporting currency.

Envizi supports two methodologies for currency exchange in reports and dashboards. Your preference can be set in Reporting and Dashboard Preferences.

Single

A single exchange rate for each currency at the end of the reporting period is used to convert all cost in the reporting period. For some of the currencies the exchange rates are recorded daily, and the system always uses the latest rate in the month. For example, if the end of reporting period is April-2014, then the exchange rate recorded on 30-April-2014 with a latest time stamp will be used for all cost in the reporting period.

This is also referred to as an 'Inventory' model. A single rate is used throughout the reporting period which is straightforward, easy to understand and allows easy auditing. It provides a good indicative number of the final cost for the specified currency, however it is less accurate since currency exchange rates do fluctuate from time to time.  

Historical

Historical monthly currency exchange rates are used for currency conversions. The last exchange rate recorded in each month is used to convert cost in the corresponding month. In comparison to the 'Single' mode, the 'Historical' mode allows the cost to be converted in a more accurately manner, since the rate of each corresponding month is used, which reflects the currency fluctuation from month to month. Since the exchange rates are different from month to month, it is relative harder to perform an audit on the rates. This behavior also has to be communicated to the clients so that they are aware of what is behind the currency conversions.

The historical monthly currency exchange rate is defined as the rate which has the maximum 'Effective_On' within each month. For example, for Nov-2013 we may have 2 exchange rate to convert AUD to USD, one is effective on '25-Nov-2013', the other is effective on '30-Nov-2013', then the latter '30-Nov-2013' one will be used for Nov-2013 cost conversion since it is the most recent rate for Nov-2013.