What is a Profit & Loss with Currency Analysis?

Profit & Loss Currency Reports are considered multi-national analysis tools and are used by CFOs and Group Managers to analyze financial results for a subsidiary reporting in a foreign currency. A key functionality in this type of report will display local (functional) and reporting currency amounts side by side. The columns include both monthly and Year-to-Date figures. You will find an example of this type of report below.

Purpose of Profit & Loss Currency Analysis Reports

Companies and organizations use Profit & Loss Currency Analysis Reports to enable managers from Corporate HQ to easily discuss financial results with their foreign subsidiaries. When used as part of good business practices in a Finance & Accounting Department, a company can improve its analysis of international locations, as well as, reduce the risk of finding oversights while reviewing results from foreign offices.

Profit & Loss Currency Analysis Report Example

Here is an example of a Profit & Loss Currency Analysis report.

Profit & Loss with Currency Analysis Example

Profit & Loss with Currency Analysis Example

You can find hundreds of additional examples here.

Who Uses This Type of Report?

The typical users of this type of report are: CFOs and Group Managers.

Other Reports Often Used in Conjunction with Profit & Loss Currency Analysis Reports

Progressive Finance & Accounting Departments sometimes use several different Profit & Loss Currency Analysis Reports, along with balance sheets, cash flow reports and other management and control tools.

Where Does the Data for Analysis Originate From?

The Actual (historical transactions) data typically comes from enterprise resource planning (ERP) systems like: Microsoft Dynamics 365 (D365) Finance, Microsoft Dynamics 365 Business Central (D365 BC), Microsoft Dynamics AX, Microsoft Dynamics NAV, Microsoft Dynamics GP, Microsoft Dynamics SL, Sage Intacct, Sage 100, Sage 300, Sage 500, Sage X3, SAP Business One, SAP ByDesign, Acumatica, Netsuite and others.

In analyses where budgets or forecasts are used, the planning data most often originates from in-house Excel spreadsheet models or from professional corporate performance management (CPM/EPM) solutions.

What Tools are Typically used for Reporting, Planning and Dashboards?

Examples of business software used with the data and ERPs mentioned above are:

  • Native ERP report writers and query tools
  • Spreadsheets (for example Microsoft Excel)
  • Corporate Performance Management (CPM) tools (for example Solver)
  • Dashboards (for example Microsoft Power BI and Tableau)

Corporate Performance Management (CPM) Cloud Solutions and More Examples