EM4 Triangulation Overview

How does Triangulation work?

Full Triangulation (NCU - NCU)

First convert Base Value to Euro Value using Conversion Factor
Euro Value may be rounded to not less than 3 decimals
Then convert Euro Value to target NCU using Conversion Factor

Partial Triangulation (NCU - Out)

First Convert Base Value to Euro using Conversion Factor
Then Convert Euro Value to Out Currency using Exchange Rate

Conversion Factors

Fixed Rate for all calculations performed where the Euro is involved
Shall be adopted as one Euro expressed in the terms of a NCU.
Shall be adopted with 6 significant digits.
Shall not be rounded or truncated
Shall be used for conversions either way between the Euro and the NCU
Inverse rates derived from the conversion rates shall not be used

EM4 Triangulation - Product Functions

Calculations:

The calculation module is designed to be called by any part of the product which needs to perform a calculation. This part of the product will be certified externally by an international accounting firm. This removes the need to do major testing on calculations at implementation allowing the users to focus on business case and accounting issues.

File Analysis:

Analyses Physical Files and identifies exchange rate fields based on search criteria defined by the user. These are presented for manual validation and defining the associations and then stored in the EM4 repository.

File Field Associations:

This process is used to identify the relationship of an Exchange Rate field with the from and to currencies, the effective date and if relevant, the company code.

Program Analysis:

This multi-pass tool searches the RPG code for the use of the relevant fields from the file analysis. The multi-pass feature is primarily to locate field movements and renaming within the programs. The result of these searches is a list of programs and fields used in the exchange rate calculations.

Code Insertion:

This feature inserts the code into the programs. It builds a dynamic table of rates gathered within the program for use within calculations. Where the calculations take place, code is inserted to call a control program, which analyses the currency parameters and decides to call the EM4 calculation, if appropriate. If it is not appropriate, a flag is set and the original calculation line is performed. For partial triangulation i.e. Out currency to National Currency Unit or vice versa, the EM4 calculation retrieves the out / Euro rate from the application currency file, performs that calculation and uses the Euro to National Currency Unit conversion factor to convert that value. The conditions supported are NCU/Euro, Euro/NCU, NCU/NCU, Out/NCU, and NCU/Out. Those handled by the original calculation are Out/Out, Out/Euro, and Euro/Out.