WEBVTT

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With amplified FX rate volatility the variance between budget and actuals is increasingly skewed due to foreign exchange translation impact.

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In CCH Tagetik, being a multi-currency system, keeping that FX variance separated from pure operational variance

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is important to us, to give you a more accurate pulse on your business. With a single click let's see how easy it is to

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neutralize that FX translation impact, using our standard reporting functionality with on the fly currency conversion capabilities. Now, in this example we are taking a look  

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at an annual P&L statement to compare our 2017 budget numbers to the 2017 actual numbers that just came in.

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Now, in this particular case, we do not have any currency rates effect, this is because we're reporting in US dollars for our corporate USA entity,

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for which the functional currency assigned at the entity level is also US dollars, hence no currency rates effect.

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But we have identified our pure operational variance in CCH Tagetik, we can always do some further investigation by leveraging our analysis capabilities

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or simply by clicking on the number to breakout my variance and revenue, in this example, into variance coming from units,

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variance in price or both, as an example of 'Product 3' where I'm seeing 

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a price increase of $50 which could have contributed to my negative variance in units of $946.

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Now, if we needed to report in a different currency, I can quickly switch my view to Euros for example and have CCH Tagetik perform

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all the currency conversion on the fly, in-memory and run a constant currency analysis by converting

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2017 actuals numbers to Euros, using one constant 2017 budget FX rate,

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so that we can start comparing apples to apples.

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Now using a simple math we can isolate the currency rate effect

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and identify our pure operational variance in Euros.