Experiment 9 PA Lab

Experiment 9: Development of currency conversion models
DEFINITION: Developing a currency conversion model involves creating a system

where exchange rates can be applied dynamically to financial data, allowing multi-
currency reporting and analysis.
Step 1: Define Requirements and Data Structure

Start by determining what currencies you need to convert, the base currency, and what
financial data needs to be converted. Clarify whether you need historical exchange rates,
real-time updates, or just static rates.
 Identify currencies: List the source and target currencies.
 Identify data points: List the measures (e.g., sales, expenses) to be converted.
 Choose a base currency: Decide on the main reporting currency, if not already
defined.
Step 2: Set Up Exchange Rate Data Source

Create or import a source cube or dimension where exchange rates will be stored. You
can either manually input the exchange rates or connect to an external data source that
provides real-time rates.
Steps:
 Create Exchange Rate Cube: This cube will store exchange rates for each
currency. Use dimensions such as:
o Currency: List of currencies.
o Date: To handle exchange rate fluctuations over time.
o Type: Spot rate, average rate, month-end rate, etc. (if needed).
 Populate Exchange Rates: If you have static rates, enter them manually. For
dynamic or real-time updates, consider setting up a data feed to regularly import
exchange rates (from APIs or external systems).
Step 3: Create Currency Dimensions

You need a Currency dimension that will list all currencies for both input data and
converted data.
Steps:
 Go to Dimensions in IBM Planning Analytics.
 Create a new Currency dimension with elements for each currency (e.g., USD,
EUR, GBP).
 If your data is time-sensitive, ensure that the dimension includes elements for
historical data (e.g., by date).
Step 4: Modify the Data Cube to Include Currency Conversion

Update your existing data cube (the one that contains your financial data like sales,
expenses, etc.) to include currency information.
Steps:
 Add Currency as a dimension to your main cube (financial data cube). This allows
each transaction or financial data point to be tagged with its currency.
Step 5: Create Currency Conversion Rules

Now you will create rules in IBM Planning Analytics to apply the exchange rates to
convert the data from one currency to another.
Steps:
 Open the Rule Editor for your financial data cube.
 Define a rule that multiplies the financial data by the exchange rate stored in the
Exchange Rate cube.
Sample Rule (Syntax Example):
['Converted Value'] = N: ['Original Value'] * DB('ExchangeRateCube', 'USD', !Currency,

!Date);
In this example, the rule takes the original financial data (['Original Value']) and
multiplies it by the exchange rate for the corresponding currency and date.
 Adjust for Different Types of Conversion Rates: If you need different rates (spot,
average, etc.), make sure to include logic to select the appropriate rate based on
business rules.
Step 6: Create Currency Conversion Process Using TI (TurboIntegrator)

TurboIntegrator (TI) is IBM Planning Analytics' ETL tool, which can automate data
loading and transformation processes.
Steps:
 Create a TI process to automatically fetch and update exchange rates from an
external source (if not entered manually).
 Schedule the TI process to run at regular intervals if using real-time exchange rates
(e.g., daily).
Step 7: Test and Validate

Test the currency conversion by:
 Inputting test data in multiple currencies.
 Ensuring that the conversion to the base currency (or any other currency) is correct
based on the rates.
 Cross-checking with manual conversions or external tools.
Step 8: Create Reports and Dashboards

Use IBM Planning Analytics Workspace or any connected reporting tools (e.g., Cognos)
to create reports that show data in different currencies. Make sure to include options for
users to select which currency they want the report to display.
Steps:
 Use MDX queries or custom reports to generate multi-currency views.
 Provide options for users to select the currency they'd like the report to be
presented in.
Step 9: Automation and Maintenance

 If you are using real-time data feeds for exchange rates, ensure that your TI
processes are running smoothly, and the exchange rate cube is being updated on
schedule.
 Review and update the currency conversion logic periodically, especially if there
are changes in the way exchange rates are handled (e.g., new currencies, new
business rules).
Example Scenario
Let’s say you are converting sales data from EUR to USD. You would:
1. Input your sales data in EUR in the main financial data cube.
2. Store the EUR to USD exchange rate in the Exchange Rate cube.
3. Write a rule that takes the EUR sales data, multiplies it by the EUR to USD
exchange rate from the Exchange Rate cube, and stores the result in a separate
measure (e.g., “Sales in USD”).
4. Test the conversion and ensure that the dashboard shows the correct USD values.

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Experiment 9: Development of currency conversion models

DEFINITION: Developing a currency conversion model involves creating a system

Step 1: Define Requirements and Data Structure

Step 2: Set Up Exchange Rate Data Source

Step 3: Create Currency Dimensions

Step 4: Modify the Data Cube to Include Currency Conversion

Step 5: Create Currency Conversion Rules

['Converted Value'] = N: ['Original Value'] * DB('ExchangeRateCube', 'USD', !Currency,

Step 6: Create Currency Conversion Process Using TI (TurboIntegrator)

Step 7: Test and Validate

Step 8: Create Reports and Dashboards

Step 9: Automation and Maintenance

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