Calculating a weighted average exchange rate of a accounting ledger

1. Power-Ups
Foreign currency
exposure - Balance Sheet

2. Problem statement
On a weekly basis the Treasury Manager wants to know :
● The AUD:USD rate on the balance sheet
● See the how the rate moves over time
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3. Measures
● To provide the information you need the following
measures:
○ Invoice Value (USD)
○ Running total of invoices (USD) at a point in time
○ Weighting Inv (Inv Value / Running Total)
○ Exchange Rate
○ Weighted Exchange (Rate x Weighting)
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4. 4
The Data
Tables
Ledger / AP ledger
The Dim
Tables
Date
Supplier

5. 5
The User Interface
The user will have the ability to select
● The year and the month
● Then week within that selection
Once these selections are made the user can
Also filter on the invoice key
It is important to consider how the user will interact with the report as the selections
the user makes will impact row and filter context.

6. 6
Invoice Value (USD)
● How should this measure work
○ Users selects the week in the slicer
○ The measure shows entries processed to date (a running list)
Entries process in week 1 is only one
invoice (0001)
Entries processed in week 2 includes the
entry for week 1 and two more entries for
invoice 0002 and 0003

7. 7
Invoice Value (USD)
Measure: SUM the USD column in the data table after filtering the date table to
include only entries less than / equal to the selected date
Measure Name: [OpenInvoices]
Sum the USD column
in the data table
Filter the date table
for all dates less than
/ equal to the date
selected

8. 8
Running Total (USD)
Measure: add up (cumulative) each line of the filtered table for the selected supplier
where the selected date is less than / equal to the current date
Measure Name: [YTD_InvoiceValueUSD]
Sum the USD column
in the data table
Filter the date table for all
dates less than / equal to the
date selected
For the selected supplier

9. 9
Weighting (USD)
The weighting of each entry should change as more entries are process. For
example in week 2 there are three entries with the smallest invoice making up 18.9%
of the total.
In week 3 four entries have been processed the weighting of all the invoices needs
to be updated to reflect this. Invoice for $3,244 now has a weight of 17.9%

10. 10
Weighting (USD)
Both the {OpenInvoice} and the [YTD_InvoiceValueUSD} is already correctly
formulated to show invoices and the total invoice based on the user selections.
A simple DIVIDE would give the weighting
Measure name: {Weighting}

11. 11
Weighted Rate (USD)
You need the actual AUD:USD exchange rate for each entry processed
I prefer to add this as calculated column in the model. This is easy to add by just
dividing the USD column by the AUD column
Now you can just multiply the rate by the weighting...Right? Well “Yes” and “No”

12. 12
Weighted Rate (USD)
Simply multiplying the weight with the rate will provide the correct result at a
supplier level but will be incorrect at the total for any date
For supplier 0001 the weighting x rate is correct (43.3% x 0.80 = 0.3461). The reason is
that there is a row context the rate and weighting exists for supplier 0001 on the 14th
of Jan.
But as soon as there is no supplier tha formula does not work and you get an
average rate of 2.35

13. 13
Weighted Rate (USD)
Not my best formula! But it works
For each
line item of
the table I
calculate
its
weighting
and then
multiply by
the rate

14. Ta-dah
A weighted rate!
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In week 1 the ledger shows the
average exposure rate as 0.80
cents.
By week 3 it has dropped to
0.7862

15. Thanks!
I am Johann Krugell
A practical guide to “Power-Up” your analysis
You can find me at @JohannKrugell@linkedin
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16. Credits
Special thanks to all the people who made and
released these awesome resources for free:
● Presentation template by SlidesCarnival
● Photographs by Unsplash
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