What is a Retained Earnings Rate Calculation Report?

Retained Earnings Rate Reports are considered month end consolidation tools for multi-nationals and are used by Group Controllers to determine the average exchange rate for roll forward Retained Earnings. Some of the key functionality in this type of report calculates the required currency translation rate for the Retained Earnings (RE) opening balance at the beginning of the new fiscal year. It lists all periods of the year down the rows for both RE adjustments and Net Income (NI). It starts with RE opening balances and ends with RE ending balance. Local and reporting currency is listed for each foreign subsidiary across the columns. Finally, the Weighted Average Exchange Rate is displayed in the upper right corner for each location. You will find an example of this type of report below.

Purpose of Retained Earnings Rate Reports

Companies and organizations use Retained Earnings Rate Reports to automatically calculate the Average Exchange Rate for the Retained Earnings to carry forward. When used as part of good business practices in a Finance & Accounting Department, a company can improve its consolidation process, as well as, reduce the risk of having incorrect financial reports.

Retained Earnings Rate Report Example

Here is an example of a Retained Earnings Rate Calculation Report.

Retained Earnings Rate Calculation Report Example

Retained Earnings Rate Calculation Report Example

You can find hundreds of additional examples here

Who Uses This Type of Report?

The typical users of this type of report are: Group Controllers and Accountants.

Other Reports Often Used in Conjunction with Retained Earnings Rate Reports

Progressive Finance & Accounting Departments sometimes use several different Retained Earnings Rate Reports, along with balance sheet and profit & loss 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)

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