Exchange rates
How to include a subsidiary with a different currency
If one of your subsidiaries is using a different currency from the main business license, you need to enter the exchange rate it should be included with.
The calculation is done by net investment principle, where the exchange rate for the annual result is the average rate for a given month, and the exchange rate for assets and liabilities is the end rate in the given month.
You must specify the rates for both budget and actual figures, and if you want to compare your figures with actual figures from the year before, it is important that you also enter the calculation rate for the previous year.
For organisations using Danish Kroner as their main currency, we have created a link to the Danmarks Nationalbank, the central bank of Denmark. Here you can find the prices of a wide range of currencies. In the example below we have selected British Pounds and Norwegian Kroner, both monthly averages and end of month figures, for the period from January 2014 (2014M01) to May 2015 (2015M05).
You'll get a handy table with the currencies you have selected. The table can be saved in Excel for later documentation.
For organizations using Swedish kroner as their currency, you should go to the Riksbank (the centralbank of Sweden). Here you can export the exchange rate for 100 different currencies
For Norwegian organizations we suggest you to use Norges Bank's (the centralbank of Norway) exchange rate
The exchange rates can then be entered into budget123+ under Settings >> Exchange rates. The table will automatically include all the currencies that your subsidiaries use. Remember to enter both historical rates and you expectations for the budget.
You may want to open two windows so you can copy/paste with ease.
If you enter an actual exchange rate for one month, it will be Global, i.e. it will apply across models. The exchange rate indicated in the budget can be changed from model to model. This means it is easy to create different scenarios that show how changes in the exchange rates can impact on your business.