Budget FX Rates – How to Set Up and Use
Budget FX Rates are used to define fixed exchange rates for budgeting and forecasting. These rates ensure consistency in budget reporting and prevent fluctuations from impacting budget vs actual comparisons.
Why It Matters
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Ensures consistent budget reporting
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Removes FX volatility from forecasts
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Supports accurate budget vs actual analysis
How Budget FX Rates Work
Budget FX Rates are set per:
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Accounting Year
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Budget Version
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Currency
These rates are applied when running budget and forecast reports.
How to Create a Budget FX Rate
Step 1
Navigate to:
Set Up Files → Currencies → Budget FX Rates
Step 2
Click New Budget FX Rate
Step 3
Enter the required fields:
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Accounting Year
Select the year the rate applies to
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Budget Version
Select the relevant version (e.g., Original Budget, Forecast)
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Currency
Select the foreign currency being converted
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Budget FX Rate
Enter the fixed exchange rate
Step 4
Click Save or Save & Close
Example
If you set:
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Currency: USD
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Budget FX Rate: 0.75
All USD values in the selected budget version will be converted at 0.75 for reporting purposes.
Best Practices
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Define rates at the start of the budget cycle
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Keep rates consistent across the same budget version
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Update rates only during reforecasting cycles
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Align with finance-approved assumptions
Key Concept
Budget FX Rates are fixed by year, version, and currency, ensuring stable and consistent budget reporting.