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How do I handle currency and exchange rates in combined reports?
Store each transaction in its original currency and also convert it to a reporting currency using a clearly defined rate, such as the rate on the transaction date or a monthly average. Document which rate you use, because it affects totals and reconciliation to accounts.
Decisions to make and write down:
- Which currency is the reporting currency?
- Which rate source and timing: daily, month-end or average?
- Do you report in constant currency to remove exchange effects?
Keep an exchange rate table in the warehouse with dates, and join to it in the model. Your accounting system may revalue balances with its own rates, so expect small differences versus management reports and explain them rather than hiding them.
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