Below you will find a video and written guide on how exchange rates work.
Indsæt Video
Below are the six different areas under exchange rates that are important for creating a correct consolidation. These six areas will be described below.
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Average rate
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End rate
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Custom Average rate
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Custom End rate
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Calculation of quarterly rates
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Calculation of yearly rates
Exchange rates are important when creating consolidation. As seen below, DKK is set to 100 and is the base currency. This is because the currency of the ultimate parent is in DKK.
Average rates and end rates
Exchange rates in Konsolidator are linked directly to the exchange rates from the European Central Bank (ECB). The exchange rates that are not available from ECB are from Investing.com
They are updated on the first business day of the month before 12.00 using historical rates from the previous month.
We recommend using these standard rates if possible since this will lower manual corrections every month. Of course, you need to use the same rates used earlier when creating the historical consolidations. Otherwise, you cannot reconcile the historical consolidations with the ones created in Konsolidator.
Custom average rates and custom end rates
When you create historical consolidations, you must use the exchange rates used at the point in time to have the consolidations reconciled. Therefore, you must use custom average and custom end on historical consolidations.
Calculation of quarterly rates and calculation of yearly rates
It is also possible to have Konsolidator calculate the quarterly and yearly rates. Using the quarterly rates button Konsolidator will calculate the average rates based on the rates for the last three months. Using the yearly rates button, Konsolidator will calculate the average rates for the previous twelve months.