Collecting Revenue in Multiple Currencies - Data Warehouse ETL Toolkit

Multinational businesses often book transactions, collect revenues, and pay expenses in many different currencies. A good basic design for all of these x situations is shown in Figure below. The primary amount of the sales transaction is represented in the local currency. In some sense, this is always the correct value of the transaction. For easy reporting purposes, a second field in the transaction fact record expresses the same amount in a single standard currency, such as the euro. The equivalency between the two amounts is a basic design decision for the fact table and probably is an agreed upon daily spot rate for the conversion of the local currency into the global currency. Now all transactions in a single currency can be added up easily from the fact table by constraining in the currency dimension to a single currency type. Transactions from around the world can easily be added up by summing the global currency field. Note that the fact table contains a currency dimension separate from the geographic dimension representing the store location. Currencies and countries are closely correlated, but they are not the same. Countries may change the identity of their currency during periods of severe inflation. Also, the members of the European Monetary Union must be able to express historical transactions (before Jan 1, 2002) in both their original native currencies and in the euro.

A Schema Design For Dealing With Multiple Currencies

A Schema Design For Dealing With Multiple Currencies

But what happens if we want to express the value of a set of transactions in a third currency or in the same currency but using the exchange rate at a different time, such as the last day of a reporting period? For this, we need a currency exchange table, also shown in Figure above. The currency exchange table typically contains the daily exchange rates both to and from each the local currencies and one or more global currencies. Thus, if there are 100 local currencies and three global currencies, we need 600 exchange-rate records each day. It is probably not practical to build a currency exchange table between each possible pair of currencies, because for 100 currencies, there would be 10,000 daily exchange rates. It is not likely, in our opinion, that a meaningful market for every possible pair of exchange rates actually exists.

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